'Where Do You Go From Here?'

"What gets me is at what point when things are going badly, and you know they are going badly, is there shared pain?" Moore asked. "I want to be fair here. This guy built the business from nothing; he deserves to be a multimillionaire. But he has taken out between $300 million and $400 million out of this company over the last few years, while they are writing up hundreds of millions of dollars of losses."

Taking the Long View

Moore, who oversees the state pension assets, said the fund has gone from $100 million invested in Countrywide to less than $10 million, through stock sales and losses in share value.

"You could make a very strong case on appearances — and this is why we've asked the SEC to investigate this — that he knew what was coming and used information that other people wouldn't have had to accelerate the selling so he could get the highest price, so he could yank out all the money from the company as quickly as he possibly could."

Appearing on CNBC in August, Mozilo defended his stock sales, saying they were legal by the terms of his compensation package, and that his decisions were not based on inside information.

"The thing that is very frustrating about Countrywide is, if you're running a business [and] you care about long-term profit, you can offer products that you know people can survive on," said Moore.

He believes that if you're overly concerned with short-term profits, "then you're going to drive that company right off a cliff."

The company, the shareholders, and buyers like Jordan, who hopes he'll be able to save his home and pass it down to his children and grandchildren, along with "a lot of fond memories … hopefully, they will carry some of them for the rest of their lives."

-- This embed didnt make it to copy for story id = 3892797. -- This embed didnt make it to copy for story id = 3892797.
  • 1
  • |
  • 2
  • |
  • 3
Join the Discussion
blog comments powered by Disqus
You Might Also Like...