4:1 Odds On “Friend Of Dodd” Indictment
Portfolio magazine put together a list of the most likely former CEO’s to end up getting indicted, and the list included none other than Countrywide’s Anthony Mozilo, the now-infamous Friend of Dodd who curried favor with numerous politicians by providing them VIP deals on mortgages.
Angelo Mozilo, Former CEO, Countrywide
Legal issue: The company faced predatory lending charges from about 11 state attorneys general. Mozilo is accused of fraudulently misleading investors about credit risks
Possible charges: Securities fraud and insider trading.
The PR headache: No executive embodies the subprime crisis more than Mozilo. The public seems hell-bent on holding someone accountable.
The investigation: The SEC and FBI are all over Countrywide, probing Mozilo’s trading in company stock and the company’s financial disclosures.
Jury deliberation: “This guy’s managed to make himself public enemy No. 1.” … “The subprime people did a great injury to this country. These guys were selling junk beyond junk. Mozilo’s on the wrong side of a very difficult issue.”
Odds of prosecution: 4:1
The verdict: The smart money bets against Mozilo.
Fortunately for Mozilo, his good friend Chris Dodd has a history of securing Presidential pardons for felons who are willing to hook him up.
HT National Review Online.
Cross-posted at The Artful Doddger.