Angelo Mozilo, the former CEO of Countrywide Financial Corp, passed away at the age of 84, according to a statement released by his family foundation. Mozilo’s death was attributed to natural causes. His name became synonymous with the mortgage meltdown when the subprime crisis emerged in 2007, and he played a significant role in shaping the events leading to the 2008 financial crisis. Born to a Bronx butcher, Mozilo embodied a classic rags-to-riches story.
During his tenure as the chief of Countrywide Financial in 2006, the company originated a staggering $461 billion in loans, with approximately $41 billion being subprime. The proliferation of subprime loans played a significant role in triggering the global financial crisis that followed. In the aftermath, Countrywide Financial was acquired by Bank of America for a mere $2.5 billion, representing less than 10% of its value in early 2007.
Mozilo faced legal troubles as well, with securities regulators charging him with insider trading and securities fraud. While once hailed as one of the best chief executives in the United States, he was later labeled as the second worst U.S. chief executive of all time by Conde Nast Portfolio. Despite the accusations and the role he played in the financial crisis, Mozilo consistently defended himself, expressing bewilderment at being blamed for the events.
News of Mozilo’s death was initially reported by Bloomberg, and his passing marks the end of an era for one of the most controversial figures in the financial industry. His legacy will forever be intertwined with the subprime mortgage crisis and the subsequent economic downturn.