During a story suggesting that Angelo Mozilo, the former CEO of the mortgage company Countrywide, is unworthy of his millions of dollars and perhaps enjoys too much time lying in the sun, ABC's Dan Harris, possibly not picking up on the former CEO's Italian ethnicity which could be the source of his skin's dark complexion, remarked that Mozilo's "deeply tanned face" could become the "face of the mortgage mess." The story ran on Friday's World News with Charles Gibson, substitute hosted by George Stephanopoulos, with Harris beginning his report: "This may well become the deeply tanned face of the mortgage mess. The face belongs to Angelo Mozilo, the once-celebrated CEO of Countrywide, now facing allegations of predatory lending and rapacious greed." Harris also ended the report seeming to lament that Mozilo is not facing foreclosure on any of his homes: "If the sale [of Countrywide] goes through, Mozilo will walk away with about $40 million. And with not one of his homes in foreclosure." (Transcript follows)
Even before reporting that Mozilo is being investigated for possibly illegally selling some of his stock holdings, ABC was already portraying negatively his large bonuses and other wealth. Stephanopoulos introduced the story:
Today executives from three giant mortgage loan companies were called on the carpet by members of Congress. They've been criticized for taking multi-million dollar bonuses while their companies lost millions on subprime loans. No one is getting more scrutiny than Angelo Mozilo, who heads America's largest mortgage lender, Countrywide.
After beginning his report possibly mistaking Mozilo's natural complexion for a "deep" sun tan, and relaying accusations of "predatory lending" and "rapacious greed," Harris seemed to take exception with the number of homes owned by the former CEO. Harris:
Even before thousands of his customers went into foreclosure, Mozilo's lavish compensation -- this is just one of his homes -- attracted criticism. Several years ago, when investor Rich Ferlauto raised questions about Mozilo's large pay package, Mozilo personally confronted him.
After airing complaints by Democratic Senator Charles Schumer that while, under Mozilo's leadership, Countrywide seemed to be reaching out to help minorities buy homes, that in reality, according to Schumer, "if you picked up the rock, you'd see all kinds of worms crawling underneath," and after covering allegations that Mozilo may have illegally sold some of his stock, Harris concluded his report seeming to wish that Mozilo were also facing a home foreclosure like some of Countrywide's customers:
Countrywide and Mozilo are now facing protests and lawsuits. And the company is now being sold. If the sale goes through, Mozilo will walk away with about $40 million. And with not one of his homes in foreclosure.
Below is a complete transcript of the story from the Friday March 7 World News with Charles Gibson on ABC:
GEORGE STEPHANOPOULOS: One of the biggest drags on the economy has been the housing crisis. Today executives from three giant mortgage loan companies were called on the carpet by members of Congress. They've been criticized for taking multi-million dollar bonuses while their companies lost millions on subprime loans. No one is getting more scrutiny than Angelo Mozilo, who heads America's largest mortgage lender, Countrywide. Here's Dan Harris.
DAN HARRIS: This may well become the deeply tanned face of the mortgage mess. The face belongs to Angelo Mozilo, the once-celebrated CEO of Countrywide, now facing allegations of predatory lending and rapacious greed.
VOICE OF UNIDENTIFIED CONGRESSMAN: If you don't bear personal responsibility, I don't know who does.
ANGELO MOZILO, Former Countrywide CEO: I do take full responsibility, for anything that happens at Countrywide.
HARRIS: Even before thousands of his customers went into foreclosure, Mozilo's lavish compensation -- this is just one of his homes -- attracted criticism. Several years ago, when investor Rich Ferlauto raised questions about Mozilo's large pay package, Mozilo personally confronted him.
RICH FERLAUTO, AFSME: We're nose-to-nose, and, you know, he's sort of pointing his finger at me saying, "Ferlauto, I want to see what you're made of."
HARRIS: Critics say under Mozilo, Countrywide engaged in questionable lending practices, such as giving people loans that were higher than the value of their homes, and luring borrowers with low teaser rates. I have a brochure that they printed out here, and you can see all the faces are Hispanic and black. He became somewhat of a hero for promoting low-income and minority home ownership.
Senator CHARLES SCHUMER (D-NY): He was a great promoter. But if you picked up the rock, you'd see all kinds of worms crawling underneath.
HARRIS: Mozilo has vigorously denied reckless lending.
MOZILO: It doesn't make sense for us to make a loan that's going to fail because we lose. They lose. The borrower loses. The community loses. And we lose.
HARRIS: Another problem for Mozilo, the government is reportedly investigating his sale of hundreds of millions of dollars of Countrywide stock, much of it before the company's stock price tanked.
MOZILO: The reason I'm selling is, is that it is the majority of my net worth. I have a big family -- nine grandchildren, five children. I have a lot of education to pay for.
SCHUMER: Please.
HARRIS: You're not buying it?
SCHUMER: I do not buy it. $400 million isn't to pay tuition for no matter how many grandchildren he has.
HARRIS: Countrywide and Mozilo are now facing protests and lawsuits. And the company is now being sold. If the sale goes through, Mozilo will walk away with about $40 million. And with not one of his homes in foreclosure. Dan Harris, ABC News, New York.
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Even for someone who's
March 7, 2008 - 22:47 ET by balboaEven for someone who's Italian, that's a tan face. That's rich Corinthian leather right there.
Not really
March 7, 2008 - 22:58 ET by PamMy husband isn't Italian, but he has that same white/silver hair and he can go out for 3 hours in the sun and he is dark for the rest of the summer..the hair makes the face look darker..
But what does a suntan have to do with anything? Has the man had his assets seized? Has he been charged with any crimes? Did Schumer have a problem with him 2 years ago or is this something new?
re:balboa
March 7, 2008 - 23:43 ET by PrairieSkyYep!!! As you said, even for someone who's of Italian heritage, this guy's got a George Hamilton tan. My first thought when I saw him on tv was that he's been sitting on a beach or under a sunlamp somewhere...
No - That's His Natural Color
March 8, 2008 - 02:01 ET by zeestephenMozilo has appeared on CNBC for years.
He has always looked very dark.
I assumed he was part North African, Arab, or Lebanese, so this could be a major faux pas by ABC.
This description does raise the issue of "protected" racial groups.
"Countrywide" stock has lost about 85% of its value.
"Fannie Mae," a government sponsored stock that packages and re-sells loans from companies like Countrywide, used to be run by Franklin Raines, a black man, who was forced to resign in 2005 because of accounting irregularities and self-dealing.
Since Raines was forced out, Fannie Mae has lost 70% of its value.
Somehow, in my opinion because of his race, Raines has escaped criminal prosecution or serious criticism from the MSM.
Schumer
March 7, 2008 - 23:32 ET by Jerry MackJust more posturing from Schumer.
The first thing you learn
March 8, 2008 - 04:11 ET by WesenThe first thing you learn when buying a house is whether you can afford it or not. It would seem the blame for the crisis lies primarily with foolish consumers. The auto makers did the same thing and I'm not hearing rants about them.
rapacious greed ?
March 7, 2008 - 23:52 ET by JayTeeLooks like the MSM finally found a Rick guy / Fall Guy for the Blame Game. After all, all those poor people didn't know what they were getting into.
If Al Gores IPO goes through,
March 8, 2008 - 04:54 ET by IamTinmanAl walks away with 50 million in cash with exactly none of his houses in foreclosure. Of course the people stupid enough to buy his stock won't be able to their mortgages, but he'll also be collecting 1 million washingtons a year in salary for doing exactly nothing.
Aint America wonderful???
What they don't tell you,
March 8, 2008 - 08:40 ET by WhoIsJohnGaltWhat they don't tell you, or even more likely, what they (media, Schumer and the like) don't even know, or perhaps they choose to ignore it...is that most of these huge compensation packages for executives are structured for various reasons so that the payout is actually quite a long time after the profitable period on which the compensation is based.
Any salesman who's primarily commission-based in compensation understands that what you do today is paid in future dollars, depending on the nature of the product sold. A guy who sells newspapers gets paid tomorrow for the paper he sold today. A guy who sells cars gets paid next month for the car he sold today, once all the dollars are transferred. A mortgage salesman may get paid three months after the sale (closing), depending on the state. A medical equipment salesman may get paid six months after the sale or longer.
The longer it takes for the results to show on the bottom line, the farther out your compensation is...that's normal. Frequently, once you leave a company, you give up any commissions that you have previously earned but not yet been paid on, that's how companies keep good salespeople.
For executives, it works similarly...if 2006 proves to be a good year for selling mortgages, and the company profits XX%, your compensation, once all the accounting dust settles and all the monies are in place, you'll receive x% as a bonus at the end of Q2/2007. So if the first half of 2006 was GREAT, and the second half of 2006 was okay, you still make a good buck halfway through 2007 when the market appears to be tanking. There's nothing underhanded about it.
Class warfare, nothing more. I work with a man, who is otherwise very smart...repairs very complicated life-support medical equipment. He is always enraged when oil company profits are publicized. "$40 billion is too much profit!!!" I ask, too much for what, one year, one quarter? For how many gallons of gas sold? For how many stock holders? For what percentage ROI? "Doesn't matter, it's too much!!!" It DOES matter...the details matter. That's the type of person who the MSM and Chuck Schemer are playing to...maybe that's who they are themselves, but until our children are educated in basic business, Chuck will always have a willing constituency.
When I first saw the
March 8, 2008 - 09:44 ET by misterbee241When I first saw the picture I thought it was Doug Wilder, former socialist/democrat governor of Virginia and current mayor of Richmond Virginia.
Doug Wilder:
http://en.wikipedia....
There is none so blind as they that won’t see. Jonathan Swift 1667-1745
»→ The man with the tan
March 8, 2008 - 09:52 ET by Cool ArrowI thought it was Robert Downey Jr.
♣ a seal
Liberal media selective outrage...
March 8, 2008 - 10:53 ET by jeffjackieThis Countrywide guy is a scumbag, but so is Algore and his carbon credit sham. Where's ABC with its report on Algore's multi-millions built on nothing?
Chirp Chirp.
Speaking of predatory
March 8, 2008 - 16:28 ET by fitzfongSpeaking of predatory lending and rapacious greed, when is the media going look into Terry McAulliffe's bleeding of Global Crossings and his lending scam that has the Clintons living in that Chappaqua house for free? Maybe they can forclose on McAuliffe's toupee.
Just goes to show,
March 8, 2008 - 20:37 ET by SlicksterYou can't trusted a colored guy or fat white guys like algore who have a fetish for chinesee business men.