Friday, February 22, 2008

First Layoff Your Employees, Then Splurge On Business Partner Ski Trips

Ritz-Carlton Bachelor Gulch Hotel. Cocktails. Champagne. Caviar. Limousines. Free lodging and ski-fittings.

The real estate and mortgage industry obviously doesn't have enough bad press these days.

It's one thing to hold all-expense paid sales meetings when things are going well with your business. But is is a good idea to continue such expenditures when the business is in considerable trouble?

After laying off over 11,000 employees in September to reduce costs, after declaring a record $1.6 billion loss, and admitting that over 90,000 (albeit only 1%) of their loans are facing almost certain foreclosure, Countrywide management considers it is essential to go all out on ski-junket trips to woo correspondent bankers who originate loans and then flog them to Countrywide.

Hotel Room: $750.00

Cocktails/Ski-Fittings: All paid

Dinner: $105 per plate, but not including Caviar of $140.00

Gratiuties: All paid

Wow. Must be nice.

Forget for a moment about the people who lied on their mortgage applications and are now "distressed homeowners" facing foreclosure and certain loss of their homes, what about Countrywide's stockholders?

Another example of good corporate governance which will no doubt contribute to federal income tax hikes in the future to pay for the aftermath.

1 comment:

Brevard County Real Estate said...

Just leaves a bad taste in your mouth doesn't it.

Just goes to show if the banks calls in lender loans they will be the first to call in your home loan and then go on another trip.

Shouldn't they be facing prosecution for some of the lending practices with stated income and forcing people into hybrid and Option ARM loans.

Didn't they get bought out by BOA!