The Countrywide VIP Scandal:
It's been widely reported that Countrywide Mortgage had a special VIP program that provided various discounts to well-connected elites who could help Countrywide politically, most famously Sen. Christopher Dodd.
Is anyone else reminded of that horrible [IMHO] Sylvester Stallone movie Cop Land, about a town full of corrupt police officers, who were accomplices to all sorts of illegal mayhem? When I saw this movie, my girlfriend and I laughed out loud when it was revealed that the police officers were all bought off with "low interest mortgages" provided by the mob. Maybe the screenwriters had their fingers closer to the pulse of American corruption than I realized!
That was not a horrible movie! Sylvester Stallone actually did a decent job acting, Harvey Keitel was awesome as the Internal Affairs guy, and Janine Gerofalo (in a serious role) as a cop and Stallone's partner.
The shot at the end, where Stallone gazes wistfully at the NYC skyline from the Jersey side of the river, was the best.
Of course, it's still contemptible no matter what the sum. I'm not pooh-poohing the numbers here to minimize -- I'm just genuinely amazed that our politicians don't drive a harder bargain. Duke at least asked for (and got) a yacht!
- Alaska Jack
"The shot at the end, where Stallone gazes wistfully at the NYC skyline from the Jersey side of the river, was the best."
Funny, that shot came to my mind too when I read the post. Memorable movie, evidently. Certainly better than most of the dreck at the 44-plex lately.
Apparently, a Craftsman 273-piece tool set will buy you a senior senator from Alaska. There might be a discount there from full-on lower 48 senators, though.
You're not crazy. I had been thinking the same thing. Even when I saw the movie, where cops are running around trying to kill some of their own, I kept thinking "All this for a mortgage? In Jersey? I wouldn't cross the street for a lower interest mortgage in New Jersey."
In all societies, those who already have money, power, influence, fame or just plain old celebrity are feted by those who want it too, or who just want to bask in the reflected glow of it. Celebrities and power brokers get meals and rooms comped all the time, discounts on products so the sellers can brag about who bought them, and entire wardrobes are provided free for TV stars for a tiny credit at the end of the show.
I wouldn't doubt that even small community banks have their own "Mario's List", made up of the community leaders. It's likely that these community leaders are better risks anyway, so it's a way to give them a little break over the stated rates that everybody else gets.
At some point the back-scratching becomes outright bribery and influence-peddling, but below that ill-defined, relative point, it's the way societies have always worked. The alpha male gorilla probably gets a little more grooming and attention from the females than the rest of the males get too.
I used to know a group of people who worked for a bank, several of whom had gotten mortgages at the employee rate. They all spoke of the mortgage as a powerful disincentive to change jobs, even though they weren't especially well-paid. It's awfully hard to give up a bird in the hand...
The fault, if any, lies with the fact that Senators have the power to destroy the bank.
If you are the CEO of a major business that spends millions of dollars a year advertising in the local paper, your morning newspaper is delivered by a person who specializes in dealing with VIP customers. He might have only 10 or 20 deliveries to make each morning (depending on how concentrated the VIPs are), but it's definitely in their interest to keep you completely happy.
This is why Consumer Reports buys their products anonymously.
I absolutely agree with Curt, Cop Land was a very enjoyable movie and Stallone delivered a solid performance. His character reminds me a little bit of a younger version of the sheriff from “Sons of Anarchy” if he had gone down a different path.
But I agree with David's assessment of the movie as a whole.