The Countrywide Financial Scandal - Essay Example

Angelo used this program as a way to benefit politicians, friends, and other executives in the industry including Fannie Mae executives. ''Senators Chris Dodd and Kent Conrad were among the VIPs who received sweetheart mortgages under the 'Friends of Angelo program'' (Wsj, 2009). The existence of this program in the banking industry was very unethical.

The societal implications of this scandal were significant. The actions of Countrywide were a contributing factor to the financial crisis that occurred in 2008. Between 2008 and 2009 there were 8.4 million jobs lost in the United States (Stateofworkingamerica). The preferential treatment that Countrywide applied through its Friends of Angelo program was unfair to the common citizen. The actions of this company were also hurtful to other stakeholder groups of Countrywide, particularly the shareholders and employees. The stock price of the company plummeted by 86% and the firm fired 11,000 employees (Cengage). Angelo Mozilo is an example of everything that is wrong with corporate America. Companies that lack leadership such as Countrywide have a very low chance of succeeding in the long run.