One has to wonder why in these tough economic times, with foreclosures still rising, why some CEO’s of failed mortgage companies are walking away with huge separation packages.  This, after making millions last year when everything hit the fan.  Case in point - Anthony Mozilo, who is testifying in front of the Feds that are examining the compensation and retirement packages granted to the CEOs of corporations deeply involved in the current mortgage crisis.  Mozilo, as you may know, walked away from the deal with BOA with 144 million in his pocket from salary and stock sales.  I assume his defense will be that he lost a pocketful by the price of stocks dropping like they did, but I am thinking I could probably squeak by on 144 mill.  Thousands lost their jobs during the Countrywide meltdown, and BOA is going to have fun picking up the pieces.  It is no wonder the Fed is interested in this.  Even I am curious.

BOA is getting a lot of feedback from consumer groups and advocates about how they will deal with the people currently in trouble from their dealings with Countrywide.  These groups feel that Countrywide has not been responsive enough to homeowners having trouble making their mortgage payments.  Indeed.  With BOA to pick up the pieces, you have to wonder where this will all go.  It is a safe bet that we are nowhere near the end of the sub prime tempest.  Some analysts predict that it will run well towards the end of 2009, and I think the impact will probably be felt a lot longer on Main Street.

Alan Fisher, executive director of the California Reinvestment Coalition, one of the advocacy groups to testify said “Our focus is not on killing the deal, but on making sure the deal works, not just for the corporations but for people in neighborhoods and borrowers.”  With this kind of pressure, it is hard to tell how BOA will perform.  Certainly, there has to be some solution for all those people that are having difficulties.

I sincerely believe that the working poor, who are struggling daily just to put food on the table and gas in the tank, are in for a very rough go.  Food prices and the price of gasoline continue to soar, and even though the country is in deep economic trouble, they still are relying on credit cards and the equity in their homes to keep them afloat.  Never in my very long lifetime have I seen people just walk away from their homes.  It has always been the bastion of the family, and if nothing else, there was a roof over people’s heads.  Now we see a turning away from this.  It gives one pause…