When companies fail to perform, should they give millions of dollars to their senior executives?
Our particular focus is the debacle with subprime mortgages. The mortgage crisis and credit crunch is devastating to both homeowners and our nation’s economy. Over 7% of all mortgages are delinquent or in foreclosure, the highest rate ever recorded. Almost nine million families now owe more on their mortgages than their homes are worth. Banks in the United States have written off more than $120 billion in assets. Mortgage companies have gone under or are on the brink. Thousands of Americans have lost their jobs and their homes. And the economic spillover is being felt throughout the world. Three companies that gambled heavily on the subprime bet are Countrywide Financial Corporation, Merrill Lynch, and Citigroup. I want to thank the chairs of their compensation committees and their CEOs for being here today and for their cooperation. All three companies have suffered enormous losses. Countrywide lost $1.6 billion in 2007 and its stock lost 80% of its value. Merrill Lynch lost $10 billi
