Friends of Angelo: Countrywide's Systematic and Successful Effort to Buy Influence and Block Reform

摘要

With Countrywide-originated loans serving as fuel and Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac acting as a furnace, the alliance of the companies created an enormous fire that eventually consumed the American economy. Many of the people in position to reform the GSEs and extinguish the flames before the danger spread were receiving perquisites from a VIP loan program operated by Countrywide under the supervision of Chairman and CEO Angelo Mozilo. These included Fannie Mae Chief Executive Franklin D. Raines and two Senators with legislative jurisdiction over the issues at the heart of the emerging financial crisis Christopher Dodd and Kent Conrad. To augment its voice in the GSE-reform debate, Countrywide dispensed favors to VIPs who it believed might be worthwhile to the company. This group of borrowers included legislators, congressional staffers, lobbyists and other opinion leaders. Countrywide also distributed benefits to business partners, local politicians, homebuilders, entertainers and law enforcement officials. Countrywide's voice was heard in the debate on Capitol Hill about reforming the GSEs.