Mozilo settles with SEC

The former Countrywide Financial CEO has agreed to pay $67.5 million in penalties to settle the civil fraud suit against him. The two other defendants, former Countrywide President David Sambol and former CFO Eric Sieracki, also reached settlements with the SEC (Sambol agreed to pay $5.5 million, Sieracki $130,000). As is typical with SEC settlements, the three defendants did not admit or deny any wrongdoing. The feds had accused Mozilo and the others of hiding from investors the risks associated with the company's risky lending. From the NYT:

Mr. Mozilo's agreement with the government represents a humbling moment for one of most audacious and flamboyant chief executives in the financial industry. The son of a Bronx butcher, Mr. Mozilo started Countrywide in 1969 with David Loeb, a business partner; together the men built the company into a behemoth with $11.4 billion in revenues at its peak in 2006. But Countrywide's foray into subprime lending and other risky loans led to its downfall, and in early 2008, hobbled by mounting losses on loans, the company was purchased by Bank of America in a fire sale. Mr. Mozilo left the company shortly thereafter.

Mozilo's $67.5 million fine is certainly high, but keep in mind that between 2001 and 2006, his compensation - including salary, bonuses, options and restricted stock - approached $200 million.