The American economy
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Transcript of The American economy
The American
ECONOMY
Jan VAN RENTERGEM
Index• Foreclosures• Banks are failing all over the US• Worst recession?• Angelo Mozilo• US sub-prime mortgage collapse• Countrywide• Conclusion
Foreclosures
Foreclosures• Obama administration rejects nationwide moratorium on home foreclosures• Uncertainty in the housing market
• Joint investigation• Potentially faulty foreclosures
• Largest banks• Mortgage firms
• Signing court documents without accurate information
Foreclosures
• The Bank of America• Extended their freeze to all 50 states
• Review foreclosures’ acts
Banks are failing all over the US
Banks are failing all over the US• Equivalent $2000 (debt) for every man, woman and child in the US
• 138 US failed banks in 2010• US midterm elections
• High unemployment• Recovery hasn’t been materialized
Banks are failing all over the US• Georgia
• 46 failed banks
• Florida• 43 failed banks
Worst recession?
534
Angelo Mozilo• Former chairman & chief executive of Countrywide• Highest-profile defendant to face trial for risky business practices• Housing collapse
US sub-prime mortgage collapse• Angelo Mozilo
• $67.5m• Civil penalty of $22.5m• Investors $45m
• Permanent ban as a director of a public firm
• David Sambol (Countrywide’s former President)• $5.5m
• Eric Sieracki (former chief financial officer)• $130,000
US sub-prime mortgage collapse• The Securities and Exchange Commission• Misleading shareholders
• Quality of the loans on Countrywide's books• Angelo Mozilo
• Inside knowledge• Reaping more than $139m
Countrywide• Shares collapsed by 80% in 2007 • Saved from bankruptcy by the Bank of America
Conclusion• American economy ≠ steady
• Failing banks• Foreclosures = doubtful
• Joint investigation
• US recession• Not the worst (yet)• Partly responsible men (ex-Countrywide)
• Punishments (penalties)
The End
•Jan Van Rentergem• Student finance & insurance (2FV2)