Unbelievable: Former Execs from Countrywide Start Firm to Buy Bad Loans

The NY Times has a piece today about the former executives of Countrywide Financial… Remember them? They’re one of the companies who top the list of “those who share blame for the nation’s economic crisis.” Yep… Countrywide… They “made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering.”

Well, it seems that the crooks who started this economic nightmare now “stand to make millions from the home mortgage mess.” It’s stuff like this that the big corporate ho’s do, that really pisses me off:

Stanford L. Kurland, Countrywide’s former president, and his team of former company executives have been buying up delinquent home mortgages that the government took over from other failed banks, sometimes for pennies on the dollar. They get a piece of what they can collect.

“It has been very successful — very strong,” John Lawrence, the company’s head of loan servicing, told Mr. Kurland one morning last week in a glass-walled boardroom here at PennyMac’s spacious headquarters, opened last year in the same Los Angeles suburb where Countrywide once flourished.

“In fact, it’s off-the-charts good,” he told Mr. Kurland, who was leaning back comfortably in his white leather boardroom chair, even as the financial markets in New York were plunging.

I personally don’t think these idiots should have any part of fixing the mess they created and be allowed to profit from it to boot. I’m not alone in that thought process:

“It is sort of like the arsonist who sets fire to the house and then buys up the charred remains and resells it,” said Margo Saunders, a lawyer with the National Consumer Law Center, which for more than a decade has sought to place limits on abusive lending practices.


“Kurland is seeking to capitalize on a situation that was a product of his own creation,” said Blair A. Nicholas, a lawyer representing retired Arkansas teachers who are also suing Mr. Kurland and other former Countrywide executives. “It is tragic and ironic. But then again, greed is a growth industry.”

Un-freakin-believable. Greed and avarous at it’s highest and lowest…

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One Response to Unbelievable: Former Execs from Countrywide Start Firm to Buy Bad Loans

  1. Terry Ott says:

    People who get rich are all about finding more and better and alternative ways to get and/or stay rich, and they never stop thinking about it. If getting richer means taking a cut of a government-run program, so be it. If it means working around the edges of what’s allowed by a law that was poorly crafted by legislators having no clue about how business gets done, no problem. These ex-Countrywide guys are all over it.


    This is just story #1 in what will be a book someday, the title of which might be:

    “How the SuperWealthy Made Themselves a Bundle Thanks to the Stimulus Program — While the Country Went Over a Cliff”

    OR, hopefully,

    “How Raking in Money from the Stimulus Bonanza Worked — To the Benefit of Joe Sixpack AND the SuperWealthy”

    — —————————-

    As sure as I am sitting here eating my midnight bowl of Cheerios, there is a conversation going on in a dimly lit restaurant out in East Armpit, Nevada — something like this:

    Big Cheese Contractor Guy: “Look, if you will do two things: (1) make sure I get that $65 million contract and then (2) don’t look too closely at the workforce I put together and bring up from Mexico to do the work — just those 2 things — I will not forget you when the money starts flowing to my bottom line. Think 6-figures. ”

    Shiny Blue Suit County Executive: “You know, of course, that this conversation never took place, all right? That said, I have a bank account for my kids’ college savings fund. If money were to show up in there, ostensibly via my wealthy second cousin, Edward Slimeball III, I don’t think anyone would ever question that. Edward would probably sell some gold coins for the record, in exactly the amount of the deposit, and whatever money he found in a FedEx envelope addressed to him should be cash — no checks.”

    Oh yeah … that’s getting teed up already. It’s what happens when money goes through politicians. And those people get reelected, too, after they play Godfather in their corner of he world. So we build in a quasi-permanent cadre of politicians when we let them dole out OUR money in ways that serve their own interests.