What we need is someone like Chef Gordon Ramsay (Kitchen Nightmares, Wednesday nights…) to go into some of these Corps and tell these CEOs “like it is” because it appears that lying in the sun, aka Mozilo, is more important than
knowing the financial strength of your company.
It won’t be long, if the mortgage reform bill passes the senate, that mortgage originators will be required to give loans only to borrowers with a reasonable ability to pay it back….”The Bush administration says current trends suggest there will be just over 1 million foreclosures this year, with 620,000 of those in the subprime market.” http://www.marketwatch.com/news/story/house-committee-oks-mortgage-reform/story.aspx?guid=%7B42A759C3-BE3B-4A6D-B215-EBD2EAE2D532%7D
I would think that will stop a lot of people in their tracks.
After all, Countrywide is in dire straits and those who invested aren’t going to be happy about getting zero returns while they continue to hand out free money. I wonder how much personal liabilitly Mozilo has.
And Citigroup is another ridiculous story- because these CEOs have lame “excuses” which can only be construed as blatently negligent or fraudulent (in my view). What use is a CEO if he/she does not know how their company is operating?
