Lovely to see the karma train has not lost any speed.
Here's a story I have been watching play out for some 5 years or so now.
and the wait has been worth it.
As we all remember, back in 2008 the fall of the housing boom was hitting the country, and shortly thereafter it was discovered that banks and mortgage companies were running massively crooked games to rip off homeowners.
Slowly the big banks were slightly reined in , ( no, not nearly enough, I agree) and thanks In HUGE part by Eliz. Warren's Consumer Protection agency and laws, the big banks realized they could not make money on carrying mortgages, if they had to do it legally.
so they sold all their mortgage carrying ( called "servicing) to outfits which did not have to go by the same rules. And these new outfits, most, if not all of them, were primarily collection agencies used to going after people's money.( Nationwide, anyone????)
Well, they did not change that attitude, and racked up tons of complaints for doing illegal mortgage servicing crap.
Until Warren managed to get the same mortgage laws applied to them.
One of the mortgage servicing companies who got our mortgage from Bank of American a few years go was called Green Tree.
Green Tree no longer exists, because it could not continue to make money doing things legally.
So its parent company settled with the US Gov. by paying huge fines, killing off Green Tree, and ran the mortgage servicing thru another company it owned...Ditech.
Ditech was a quickie loan company for many years, and collection agency and even today on my mortgage statements it reminds me of that in print.
And here comes the karma train.
The parent company stock has been sliding down the chute for the last few years, really fast, really down.
STOCK...they have stock holders, to whom they are legally obligated to make money for.
For the last year, in 2016, they hired 4 different CEOs whose job was to turn the company around.
The thing is, in that business, apparently, you hire a turn around guy, giving him a contract which includes a $$$$million plus sign on bonus, a guaranteed salary, AND a guaranteed exit pay.
You will not be shocked to hear each of the 4 CEOs came and went, each collecting that lucrative coming and going $$$$, the last one who just left made 5 million for 3 months work.
That is about $20 mil in ex-CEO pay for one year or so.
the stockholder part?
Every class action lawyer group in the country is now calling for those stockholders to join in a massive lawsuit against the company, on the grounds the company has not been honest about debts and obligations and responsibility to NOT let the stock slide from $50.00 in 2013 to...$1.00 as of today.
And for dessert:
The 34-Year-Old Hedge Fund Manager Who Bet Everything On A Stock That Tanked
give ya one guess which stock that was.
https://www.forbes.com/sites/nathanvardi/2017/03/16/the-34-year-old-hedge-fund-manager-who-bet-everything-on-a-stock-that-tanked/#6076e2216fb3
= new reply since forum marked as read
