Blair Nicholas Appears on Fox Business News to Discuss Countrywide Suit
March 5, 2009
BLB&G partner Blair Nicholas appeared as a guest on Fox Business Network's "Market Hours Program" to discuss the firm’s ongoing suit against former executives of Countrywide, Inc. alleging that the company participated in irresponsible mortgage lending practices in the period before the subprime collapse, and the recent ‘ironic and tragic’ rise of ‘PennyMac,’ a company founded by former Countrywide president Stanford Kurland, which has bought thousands of delinquent home mortgages from the government and profited from those purchases.
The suit, filed on behalf of Arkansas Teachers’ Retirement System and other institutional investors, seeks to hold Countrywide's CEO, Angelo Mozilo, and its other officers and directors accountable for the severe harm caused to Countrywide and its shareholders. As the Complaint alleges, these individuals, entrusted with the responsibility of serving the best interests of shareholders, had knowledge into the impending collapse of the subprime mortgage market. While they continued to publicly tout the safety and security of the company's mortgage lending practices and strategy, they liquidated their personal holdings as fast as possible.
As Mr. Nicholas notes, ‘the house of cards collapsed,’ and top executives, including Kurland, ‘cashed out’ of the industry as they saw the bubble bursting. The success of Kurland’s new venture is a product of the catastrophic abusive lending practices like those of his former company, which affected millions of homeowners and precipitated the current global economic crisis.