Stansd: You make an excellent point regarding drawing down on available financing.
I used to do finance/accounting consulting for distressed businesses, and one of the first things I would check were the lines of credit.
This came to epitomize a company truly in trouble, because it speaks to the lack of liquidity. Generally speaking, it is cash flow (or lack thereof) that is gonna kill ya.
I think Mozilo saw the writing on the wall, and took the money and ran. I can’t imagine the timing of his selling all of that stock was mere coincidence.
