Angelo Mozilo, CEO of Countrywide Financial, has become infamous for the large amount of stock he’s been selling, and is currently being scrutinized by the SEC. In this video, however, we hear Mozilo’s defense–he’s got a big family and needs to pay for college for all of his grandkids:
According to North Carolina State Treasurer Richard Moore, Mozilo has sold between $300-$400 million over the past few years. I was wondering just how much college that would pay for:
Let’s give Mozilo the benefit of the doubt and say that he only sold a paltry $300 million in stock. That would give him $33+ million per grandchild for college. Harvard estimates that inclusive of tuition, room, board and fees, a year of school should run about $53,000. That makes $300 million a little excessive for nine grandkids, even at an ivy league school.
Perhaps Mozilo just underestimated the number of grandkids then. At $53,000/year, a four year program would cost $212,000. With $300 million, he could send 1,415 grandkids to college.
And I thought I had a big family.
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I would *love* to see the SEC build a case against Mozilo, put him in front of a jury and then watch him escorted, handcuffed, into the prison transport van on Court TV, for an extended stay at Club Fed.
Likely as not, there will be shareholder suits, an SEC investigation. Nothing else. Remember, as he sold his stock, he had the finest attorneys advising him that money could buy.
‘His naked orange body will be rolling in gold coins’ …
Whatever happened to the Countrywide ‘loyalty oath campaign’ anyway?
Hey while you are at it Bob Toll was doing the same thing.
NVMike-
I suspect Yossarian is right. While what Mozilo did wasn’t right, I’m sure he made sure it was legal.
Metro-
Toll and a bunch of others. It must be nice to have a compensation package that lets you reap big bonuses while you tank the company.
I take issue with the story stating that only Mozilo knew what was coming, the blogs were sounding the horns well before he started selling stock. If I were him, I would have done the same thing. I think they’ll get him due to his continual tweaking of his selling agreements. If he would have left things alone he could probably walk.
I can easily see Countrywide turning into the next Enron. IMHO, they already have one foot in the grave, and the only way I see them surviving this is with major governmental assistance. Since they’re the farthest along in the death march, I doubt that’ll happen. It’ll take CFC’s demise for the government to step in and help others.
Yossarian and twist – I’m sure Jeffrey Skilling and Ken Lay thought the same thing, right up until the jury reached its verdict.
NVMike-
I’m afraid I have a rather cynical view of our justice system. In many respects Mozilo is the poster child of what is wrong with the system, and I’d love to be wrong and see him get what’s coming to him. [And that wouldn't be more stock options!]
Angelo might have really dumb kids. He might have to buy a new library, research lab etc. for each one.
LikkeredUp-
For that kind of money, he should be able to buy them their own college!
Why doesn’t he just tell the kids to go to community college, join the service (and use the GI Bill), or just find their own way in life? I seem to recall Warren Buffett telling his descendants something like that.
Don’t worry. He’ll be tried for economic crimes, if he doesn’t get whacked before then!