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)