A Sound Investment
Posted June 19th, 2008 at 11.03am in Ongoing Priorities.
Senate Banking Committee chairman Chris Dodd (D-CT) may not know what interest rates currently are, but the Wall Street Journal has crunched the numbers and estimates that the discount loan Countrywide Financial gave him will save him $75,000 in mortgage payments.
The WSJ also looked into how much of the $300 billion Dodd hopes to give away to banks as part of his housing bailout bill will go to Countrywide: “If borrowers and lenders take full advantage of this new federal program, and Countrywide loans go south at roughly the same rate as those from other lenders, this suggests a potential taxpayer bailout of more than $25 billion for Countrywide-originated loans.”
$25 billion in taxpayers funds at a cost of only $75,000 in mortgage payments. Sounds like Countrywide CEO Angelo Mozilo is earning his $22.1 million.
- Author: Conn Carroll
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