i dont know how much stock or stock options this guy has got but he sold another clip of 46000 shares on thursday valued at $1.64 million. so far since february this year his shares sales have totaled $36,940,913.00 http://www.secform4.com/insider-trading/25191.htm
I attended a dinner party this weekend with a former sub-prime mortgage broker now selling pharmaceuticals. He told captivating tales about closing deals for people who had absolutely no chance for getting a mortgage on rental / commercial properties along with new homes. By his admission, there are huge numbers of mortgage time bombs out there 100% reliant on the economy in general and real estate prices in particular moving straight up. If the hamster wheel slows down, creative balloon notes predicated on rising prices will explode. Borrowers who would not be able to successfully refinance in several years would be doomed. The true real estate debacle may not be seen for a couple of years. Unless values and the economy continue in straight-up fashion, a great unraveling of the entire economy is imminent. Keep those consumers spending & buying houses... at all costs
His actions warrant class action lawsuits from shareholders in my opinion..they're coming, I'm quite sure of that. I do know that thre are attorneys looking at filing suits alleging insider trading....I'm not sure of the exact reasoning or information behidn that...but indeed, I'm quite sure that there are at least a few shareholders who are disgusted enough by his actions to file suit. In my opinion, he has really harmed the goodwill of the company. If you don't also know, the company has a stock buyback plan and it was valued at $2.5B in buybacks...according to their 10-K, they spent $1.5B buying back...meanwhile their CEO is unloading shares like it's the last day on earth. His term isn't up until 2009 and I feel that his selling is indicative of either some huge scandal or him being on his way out much sooner than 2009. No doubt he can just get more options...but what type of CEO have you ever seen unloading stock like this guy? p.s. Maybe a moderator can move this to the proper category.
It is indeed one of the most blatantly non-shareholder friendly moves I've seen. It's completely disgusting that no one in the media seems to be willing to point this out. Herb Greenberg has pointed it out as did Maria whatever-her-name-is on CNBC, but not on the air, in print online only. I actually did forward some concerns I had to some attorneys and was told that they were already looking at potential insider trading problems...what that means I have no idea. Shareholders have every right in my mind to file a suit...I would say that Mozilo has damaged the Goodwill of the company in a big way with his recently ramped selling spree. While Mozilo's actions may not violate any securities law I do think he signals that now is a good time to sell and that shareholders would be right to oust him due to his actions which I would say cause extreme harm to the stock price. I'm not a master at reading complex filings but I did pick apart some things and according to their most recent 10K, their Full Spectrum Lending division made 90,000 loans to non-prime borrowers. This represents $14.6B...while it's impossible to know the true nature of those loans, i.e. zero-down or interest-only, it does appear that the company isn't fairly stating their exposure to this frightening market. Like I said, I'm no whiz when it comes to reading complex finances...but these non-prime loans made up 41% of the Full Spectrum Lending division's practices...the FSL division employs 8,800 people as per the company's filing. I think there is a major disjoint between the company's stated exposure and their actual exposure. I could be wrong...but the coninciding dumping of shares by insiders and "all is peachy" attititude of Mozilo makes me a little nauseated. I've also been in contact with another analyst who seems to have his own questions about the company and their practices. If Mozilo walks through this field unscathed and free of lawsuits, SEC/DOJ investigations, scrutiny, etc. I will be astonished and probably feel a lot worse for the collective intelligence of the markets for not at least questioning this man's actions in a big way.
another clip goes through. 20th march 2007. 70000 shares value $2,473,674.00 jesus. how much stock has this guy got. this is just sheer greediness at the expense of other shareholders and mortgage borrowers. this guy is an overpaid over tanned twat.