Creative pay packages for top officials of subprime mortgage company (don't read soon after eating)

[DuaneBidoux]

Source: International Herald Tribune

Things aren't going very swimmingly for investors in NovaStar Financial, a subprime mortgage originator in Kansas City, Missouri. Its stock plummeted last week on news that the company lost $64.05 a share in the third quarter, that it had canceled its preferred stock dividend and that it was no longer able to reap the tax advantages of a real estate investment trust...

...Happily, though, there is one NovaStar constituency that is doing just fine - the top executives and co-founders. Over the years, they have pocketed millions in compensation, based largely upon loans that probably should never have been made.




Read more: http://www.iht.com/articles/2007/11/18/business/morgenson.php

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It speaks for itself.

[Tab]

1. "The stock ended the week at $1.72, down from $40 in June."

Anyone in charge of something that has tanked like that should be dumped.

[Frustratedlady]

3. Or investigated?

How are they pocketing million$? When was their last bonus handed over? It sounds to me that it isn't only bad loans. JAT

[Tab]

8. You're right

Dumped at a minimum. Investigated, better yet.

However that was probably too much to hope for. So that's likely why I just said "dumped".

I'm getting too cynical in my old age.

[Trillo]

2. The Executive is out of control.

In business, the executive is vastly over compensated (money); and in government, the executive is too powerful.

Though they both might look different, Money = Power, or "best government money can buy."

[silverweb]

4. Deja vu...

I wasn't very politically aware during the S&L scandal/bailout, but this all seems eerily familiar.

We already know who will finance the bailout of the banks and mortgage companies that survive.

And the looting and plundering continues....

[Edith Ann]

5. S&L's

Most of Bush one's kids should have gone to jail for the S&L's. At least Neal and is it Murl?

[silverweb]

7. Neil, for sure.

I don't know about the other one.

Neil's under scrutiny again for cronyism and corruption involving his "learning tools" company.

The entire rotten family needs to be abducted by aliens and taken off our world.

[kcass1954]

11. Jebbie - google "Broward Federal". n/t

[UpInArms]

9. another case of privatizing the profits and socializing the risks

:hi:

[silverweb]

10. Exactly!

The GOP core philosophy.

:hi:

[annabanana]

16. Their reason for being.

Busting out America for their thug friends.

[bluerum]

12. Very similar scam. Make huge loans to poor third world countries who are

more than happy for the cash. This really churns the books and makes it look like business is booming. Bonuses and raises all around.

The when it is time to write off the bad debt (those darn irresponsible debtor nations) the US taxpayer foots the bill.

This time around the scam has a little different twist. Loan to individuals who don't understand the implications of interest rate "adjustment" and when they default throw them out of their homes.

[Rosemary2205]

17. We crash every 20 years or so. It's like clockwork.

The shit hits the fan. The scumbags law low for a while while Congress pretends to care - pass a few toothless laws and investigate a few of the worst. One or two scapegoats spend a few months at the Danbury Inn and Country Club. Then when the masses move on to the young busty blond du jour the scum machines fires itself up with a "new and improved" way to suck the life out of workers.

[silverweb]

19. I read something about that recently.

That the "powers that be" (the Federal Banking System?) have engineered it that way, a boom-and-bust economy.

The oligarchs engineer these periodic busts so they get to profit at the expense of everyone else and walk off with the lion's share of the country's wealth. Then the rest of us work our asses off to make things better again, and get ourselves and the economy back on its feet and into a new economic boom. New bust, rinse and repeat.

We peons are analagous to a crop that's planted _{(left just enough of the dregs to get started)...}

allowed to ripen _{(rebuild the economy)...}

and cut down at harvest for the landowners' profit _(bust).

I don't like being a cornstalk! x(

[nealmhughes]

6. Don't those at the top of Pyramid Schemes always win?

[LuckyLib]

13. Why are we surprised? The airlines go into bankruptcy, and the execs get paid millions

for "getting them out" after employees take massive pay cuts. Northwest's CEO made $28 mil last year. It's the American way.

[RavensChick]

14. Sounds like another Enron to me!

:scared:

[Trillo]

15. Sounds like a "false negative" to me.

The use of the term by antifaschits comes up in this discussion:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3070009

[God23]

18. Wow. reagan's Gordon Gekkos still survive...

Not like they would starve as long as Bushco still has a hand in things.