Friday, February 22, 2008
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.
Posted by Markus Arelius at 2/22/2008 11:15:00 AM