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Thursday, August 23, 2007

Does Countrywide's Mozilo Have a Right To Call Someone Else "Irresponsible"?

I find it amusing that Countrywide's (NYSE: CFC) CEO Angelo Mozilo is out saying the Merrill Lynch analyst was "irresponsible" for mentioning a worse case scenario 'bankruptcy' in his 08/15 downgrade of the company.

Let's look how "irresponsible" Mozilo has been:

1. Giving loans to people who could never pay them back.

2. Telling the world how great your company is and how much you would capitalize on the demise of others while your business model was collapsing.

3. Telling CNBC a recession was coming. (I find this a little self serving)

4. Dumping millions of shares for "diversification" purposes. "I have a big family" and "lots of college expenses" Mozilo said to CNBC. What a joke.

5. Bragging about your ample liquidity and strong financial position just weeks before drawing down your complete credit facility and giving away the house to Bank of America.

6. Calling the Banc of America investment a 'vote of confidence' (How about buying your own stock for a 'vote of confidence').

These are some off the top of my head. I'm sure there were many more irresponsible words and actions.

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