Shame on IndyMac

As I recently discussed with students, IndyMac has no one to blame but itself.

Shame on you Mike Perry!

You too Angelo Mozillo!

For those of you who do not know the realtionship between these two rocket surgeons, IndyMac Bank was the brainchild of Mike Perry and Angelo Mozillo when they were both at CountryWide almost 17 years ago.

At least, that’s what I was told when I was on a consulting project for IndyMac Bank in 2006.

Let’s pose a critical question someone should have asked prior to funding seed money for IndyMac Bank.

“How can you lend less than perfect credit borrowers money for home loans when these borrowers cannot, have not and do not know how to manage money”?

Simple, shareholder value.

This is kind of oxy moronic thinking.

It is the job of the CEO to increase shareholder value for stockholders of a company, but at what cost?

Mike and Angelo simply didn’t care about the home borrower and really just wanted to increase shareholder value.

This, my fellow Americans, is a flaw in American capitaism.

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