He buries the lead -- its in the fifteenth paragraph: "America doesn’t criminalize bad business decisions, even when they lead to business failure"
How much did he actually pay out himself in the end? Mozilo's worth ~$600M according to some quick googling. $67M represents ~10% of his net worth (some of which was gained illicitly). From a risk perspective this looks like a great deal! Cheat yourself up to a big fortune and if you get caught so what? You've made it! So I do think the fine should be on the same order of magnitude as the net worth of the individual to really send a message -- and it should not be tax deductible (if it is for individuals, I believe companies can).
I also think there should be a more serve and general ban from the securities industry.
The line between aggressive business decisions and criminal ones can be a thin one. Financial crimes are in fact a relatively new invention. Did you know that at common law, embezzlement wasn't a crime? It took a long time for the law to come to terms with the idea that there should be anything illegal about doing something with money someone voluntarily gave to you.
The UK is an example where company directors can be prosecuted for corporate mismanagement (failing in fiduciary duties http://legal.practitioner.com/regulation/standards_9_3_6.htm) and there are new offences planned specifically for banking.
But in fact Fred Goodwin received a handsome pay-off and has 24x7 police protection as a result of protestors arriving at his house when details of his huge bonus pay-off became public. He even obtained a super-injunction making it illegal for UK newspapers to reveal he worked as a banker ! (http://en.wikipedia.org/wiki/Fred_Goodwin#Superinjunction)
edit: as someone else pointed out he did lose his knighthood but that hardly seems as severe as prison time.