Remember Chicken Little and her warning, the sky is falling? I sometimes feel like a Chicken Little, with my repeated warnings that the sky is indeed falling and here’s another example.
Just last week I posted about my fellow Bank Whistlebowers United colleague Michael Winston’s interview with Gretchen Morgenson on the New York Times Facebook venue.
I’m still chilled by Michael’s description of Countrywide’s co-founder, former chairman of the board/CEO Angelo Mozilo’s funding strategy which Michael inadvertently stumbled upon after they had hired him to take their company to new heights. “Fund ’em” was the policy, regardless of their income (did they have any?), even if they had no assets. “Fund ’em” if they can fog a mirror.
Countrywide Financial Corp. wanted to be the “Goldman Sachs of the Pacific.” Instead their shoddy practices led to our 2008 financial meltdown and instead they became the face of risky lending practices, with Mozilo becoming the poster child for Wall Street greed.