"Under the agreement he had when Countrywide was an independent company, Countrywide continued to be responsible for his legal expenses for actions taken while he was an employee," Bank of America spokesman Robert Stickler said.
From CNNMoney.com: Bank of America to pay Mozilo's legal fees
Bank of America Corp. said Tuesday it is covering the legal fees of Angelo Mozilio, the former Countrywide Financial Corp. chief executive charged with securities fraud and insider trading.
The largest U.S. bank said Mozilo is covered by an indemnity clause in place when he ran Countrywide, which Bank of America acquired last July 1. Mozilo had co-founded Countrywide in 1969.
The securities and Exchange Commission filed civil charges against the 70 year old Mozilo last Thursday, saying he made more than $1139 million of improper profits by exercising stock options in 2006 and 2007 while the nation's housing market and Countrywide's finances were deteriorating.
I have to say Angelio Mozilo was one slick dude. Cash out millions in stock options before your company goes belly up, make millions selling a belly up company, and then cover your ass and stick the legal fees to the company that buys you out. Genius or crook? Tell us what you think.
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