V.I.P.s get mortgage breaks from Countrywide
As if Countrywide Financial Corp. doesn't have enough trouble on its hands, now comes a report from Conde Nast's Portfolio magazine investigation, which revealed that two U.S. senators, two former Cabinet members, and a former ambassador to the United Nations received loans from Countrywide through a select and fairly secret program that waived points, lender fees, and company borrowing rules for prominent people.
Yea, yea. I'm thinking the same thing. Why do prominent, wealthy, famous people get all the freebies and deals? They're the only ones who can afford the stuff that companies throw at them, right?
Anyhow, you've probably heard Sen. Christopher Dodd, a Democrat from Connecticut and chairman of the banking committee over there to your right, telling everyone this month that the special favor would not influence his decision-making in banking matters.
But, er, isn't Dodd the same guy who is behind the big $300 billion mortgage bailout package, which would allow lenders like Countrywide to dump bad loans at taxpayer expense?
Others who took advantage of the V.I.P. program, which mostly benefited F.O.A. (Friends of Angelo Mozilo, Countrywide's CEO), were: Kent Conrad, Democrat from North Dakota, chairman of the Budget Committee and a member of the Finance Committee,; former Secretary of Housing and Urban Development Alphonso Jackson, who was deputy H.U.D. secretary in the Bush admin when he received the loans in 2003; former Secretary of Health and Human Services Donna Shalala, who received two loans in 2002 after she left the Clinton admin; and former U.N. ambassador and assistant Secretary of State Richard Holbrooke.
We should give everyone in this murky tale the benefit of the doubt (innocent before proven guilty yadda yadda yadda), but if it's all true then we should smack everyone involved in the back of the head (virtually, not physically... please, commit no real acts of violence) since they should all know better.
(AP Photo)
Categories: Loans, Naughty businesses/NBotW
Comments
drag them in front of congress. oh yeah they are congress???
Posted by: robie | June 24, 2008 7:49 AM
...Yet another reaon why I am perturbed my mortgage just got bought out by Countrywide two months into my 30 year term...
Posted by: The Beav | June 24, 2008 12:59 PM
IN AN ARAB COUNTRY IF YOU STEAL THEY CUT YOUR HANDS , AND IF YOU LIE YOUR TONGUE. CONGRESS WOULD BE SO SCREWED.KEEP AN EYE ON AIG THEIR AT IT AGAIN !!!
Posted by: PETE LOPEZ | October 9, 2008 10:54 PM