It seems that the winners in the world economic crisis of 2008 are not the innocent victims of the subprime mortgage crisis--millions of American homeowners whose homes are in default and foreclosure -- but those who actually implemented caused and ran companies that lent outrageous sums of money to mortgagors to buy homes that any prudent credit analysis/check (if one had been done) would have summarily rejected.
A recent article from the New York Times under the title Biggest Fish Face Little Risk of Being Caught reports that according to a Los Angeles Times article 'prosecutors had concluded that Mr. Mozilo's {Angelo Mozilo co-founded Countrywide Financial in 1969 and ran it for the next 40 years) actions 'did not amount to criminal wrongdoing.' "
(Note: Countrywide Financial Corporation was ranked number 1 among subprime lenders nationally, originating $97.2 Billion worth of these loans between 2005 and the end of 2007.)
Other corporate bigwigs who may have wittingly or unwittingly participated in the massive subprime fraud include Richard Fuld (who presided over the demise of Lehman Brothers) and
Joe Cassano who was head of the financial products unit of the American International Group (AIG) who had a passion for credit-default swaps. (Remember the huge Fed bailout of AIG to the tune of 85 Billion dollars.)
It appears that both aforementioned executives will also be off the hook of the the US Department of Justice probe into their participation and culpability in the economic crisis.
In late 2010, it was announced that the SEC and Mozilo had negotiated a settlement of $67.5 million, the largest ever financial penalty assessed against a chief officer of a public company. (This was after he sold his stock in the company in 2007-2008 for twice that amount!)
So, who are, indeed, are the winners in this financial morass which continues to plague the world's economy?
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