Rubin~Prince~Mozilo Will they get their just desert? Or is Martha a bigger target?

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Mortgage and Lending

 Insider trading, something that Enron executives, and Martha Stewart know all about and have paid for it with real jail time.  But now the exec's at Citi and Countrywide are selling stocks day's before major announcements of doom and gloom, and no one is clamoring that they go to jail!

So why did Martha Stewart get hammered for a $60k stock indiscretion, but Anthony Mozilo, CEO of Countrywide, bail out on hundreds of thousands of stock during the summer, but at this point very few are calling for his head?  Now we find out that our former secretary of treasury, Robert Rubin (smartest man in the Clinton White-house) could also be guilty of inside trading as he dumps CITI stock like no ones business! 

These guy's are up to their eyeballs in dirty money and I sure hope for fairness sake they get nailed as hard or harder then Martha.  Another oddity is how much money they pay themselves and look at the performance of their companies.  I'd love to work somewhere that I could lose the company hundreds of millions of dollars and still get my forty million dollar golden parachute.

If Prince (CITI) Rubin (CITI) and Mozilo (CWBC) do not get nailed by the SEC, then I'm really going to think the fix is in when it comes to bankers versus the rest of the market.  Now the banks want to blame mortgage brokers, but they won't look at the greedy men at the top of their organizations.  The hypocrisy coming from these major banks is making me sick, and I'm thankful that I do not own their stocks at this point. Frankly I don't care if  they all go out of business and take their golden boy's with them.

Why the harsh criticism, read these articles and you'll see why....

CITI FIASCO 

Mozilo of Countrywide 

 

 

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robert rubin
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mortgage implosion
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Rainer
73,829
Gail Gladstone
Gladstone Group & Long Island Business Brokerage - Huntington, NY
Brokering Success
Great post!  Tell it like it is...maybe someone will listen.
Nov 06, 2007 04:38 PM #1
Rainer
76,774
Chuck Christensen
Your Financial Coach - Bellingham, WA
Unfortunately, the SEC has no control over the banks. The banks have control over the government, and that is why they lobby to put Mortgage brokers out of business by inacting laws for Mortgage Brokers that don't apply to banks. Like disclosing the YSP and no fee loans...Mortgage brokers in Washington now have to disclose the amounts, but it doesn't apply to banks. And consumers still think they are doing loans for FREE! If the CEOs are cashing in on their stocks...it's a hint! So why isn't everyone cashing in their CITI and CWBC stock...are they stupid or just a little slow.
Nov 06, 2007 04:50 PM #2
Rainmaker
139,107
Paige Rausch
Boback Commercial Group - Fort Myers, FL

Running a corporation is much simpler than running a democracy with all it’s obsolete checks and balances. 

You don’t have any internal checks and balances and far too much secrecy.

I think one of the most amazing features of decade was the astute little people that saw the housing train wreck coming. It was discussed ad nauseum in forums for years, yet the financial sector, all Harvard and Yale and Wharton graduates (and a few butcher boys) seemingly had on blinders and like lemmings dove over the cliff (pockets stuffed with cash and landing on feather beds).

Okay I feel better!!

 

Nov 06, 2007 04:57 PM #3
Rainer
69,963
Karl Christen
Pleasant Grove, UT
Thanks Gail, and Chuck, I do think the SEC can regulate the stock trading within a bank, therefore why are Rubin, Prince and Mozilo getting away with their shannigans at this time.
Nov 06, 2007 05:10 PM #4
Rainmaker
73,930
Cris Burlew
Beach & Luxury Realty, Inc. - Saint Pete Beach, FL
Broker ~ St Pete Beach FL Real Estate

It will be interesting to see what actually happens. They are probably getting away with it right now because of the "good 'ol boy" network. They made an example out of Martha because she wasn't part of that network nor did she play by "their " rules.

I feel as though they should all be nailed as well. It is interesting to note, that a couple months back, Countrywide didn't want anything to do with helping out the homeowners in trouble. I personally know someone who wrote them regarding their situation and asked if it can't be fully restructured, then how about putting a couple of payments on the backend? The response was a firm NO...you need to make your payments as to the terms you agreed to! But, now that Mozilo is under investigation...it's a whole new story. They are practically bending over backwards wanting to help restructure loans and make themselves look like the good guy...how disgusting!

Nov 06, 2007 10:06 PM #5
Rainer
76,774
Chuck Christensen
Your Financial Coach - Bellingham, WA
Actually, I think Martha's jail time was due to lying about her trading. The SEC oversees the OTC trading and insider trading of securities in the open market. The NASD and NYSE (now FINRA) oversee the industry. Insider trading has to be proven also.
Nov 07, 2007 02:13 PM #6
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Rainer
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Karl Christen

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