Bank of America (BAC), which has received $45 billion in taxpayer funds, said on Tuesday it is covering the legal fees of Angelo Mozilo, the former Countrywide chief executive charged with fraud and insider trading.
From Reuters: The largest U.S. bank said Mozilo is covered by an indemnity clause in place when he ran Countrywide, which Bank of America acquired last July 1. Mozilo had co-founded Countrywide in 1969.
“Under the agreement that he had when Countrywide was an independent company, Countrywide continued to be responsible for his legal expenses for actions taken while he was an employee,” Bank of America spokesman Robert Stickler said.
The SEC filed civil charges against Mozilo last Thursday, saying he made nearly $140 million of improper profits by exercising stock options in 2006 and 2007 while his firm’s finances were deteriorating.