Bank of America Stuck with Mozilo's Legal Fees

Just when people were wondering why Bank Of Countrywide Lynch wasn't paying back the TARP (well, that, and a several hundred billion in toxic assets) Reuters is reporting that the legal fees of Agent Orange, who was recently charged by the SEC with fraud and insider trading, will be paid for by TARP-for-life member BofA. Taxpayers must feel privileged that their hard earned cash is getting funneled back into the US of A so that it, in turn, can give it to Ken Lewis, so that the latter can make sure the Moz gets a few more Hollywood Tans sessions before he shares a cell (20W incandescent illumination, no UVA/UVB) with Bernie.

"Under the agreement that he had when Countrywide was an independent company, Countrywide continued to be responsible for his legal expenses for actions taken while he was an employee," Bank of America spokesman Robert Stickler said.

Speaking of, is Hollywood Tans public? If it is, does the Moz have a "Key man" Risk Factor clause in the company's prospectus/10K? Shorting candidate? On second though, the company is probably 10x levered, highly shorted and its stock has generated returns of over 1000% in the past month.

Comments

[Larry House:]

Is there any wonder why big banks have such tarnished images? And Chrysler wants bankruptcy to relieve them of liability for product defects in the past. How does Obama go along with that and still be the public protector?

Jun 09 04:21 PM

[John Galt:]

Can Angelio Mozilo just go away???

To Jail?

Jun 09 10:40 PM

[Gravity404:]

LOL, Tyler you are the best!

But no reference to the umpa lumpa song in front of Congress?

Jun 10 09:14 AM

[jackooo:]

Obama promised change, not dollars.. lol

Jun 10 12:36 PM