Florida AG Sues Countrywide Financial

[Waterbuffalo]

http://online.wsj.com/article/SB121485891088517069.html?mod=googlenews_wsj

By RUTH SIMON, wsj.com

The Florida attorney general on Monday filed a civil lawsuit against Countrywide Financial Corp. and its chief executive, Angelo Mozilo, alleging the company engaged in deceptive and unfair trade practices.

The lawsuit, filed in state court in Broward County by Florida Attorney General Bill McCollum, alleges that Countrywide put borrowers into mortgages they couldn't afford or loans with rates and penalties that were misleading. It seeks civil penalties and damages.

Florida's action follows similar lawsuits filed last week by attorneys general in California and Illinois. Mr. McCollum said that his state has had a continuing investigation of Countrywide and "we thought it was important for us to do this right now."

A Countrywide spokesman declined to comment on the specifics of the suit but said the company is "fully cooperating" with the Florida attorney general's office and is "particularly focused" on working with customers who are having difficulty making payments.

[Chief]

It's too bad that Senator Dodd isn't up for reelection this year. If he were a Republican, there already would have been howls for him to resign from the Senate...

Developing...

[Waterbuffalo]

Just saw a post about Wachovia is also pulling from these same loans.

But since there is a wrath of banks pulling out, did not think reposting the whole article was worth the trouble.

[Chief]

The big three in all of this (in order) are Countywide, WAMU, and Wachovia. They are all in it up to their eyeballs, and I think that the only reason the Justice Department hasn't come down on them with both feet is because of the massive numbers of loans, if all of them were forced into default by shutting down the bank, can you imagine what the long term financial damage would be?? If you think things are bad now, they could be much, much worse.

These bankers must go to bed at night and say a prayer of tanks for high oil prices...because $142/barrel oil takes the spotlight off of the mortgage mess, at least partially...

So it goes...

[Waterbuffalo]

Hmm Having two Enrons happening at once? Boy I should get out the popcorn and get out the 4th of July flags as I watch the these boys some time within the next six months go to Jail.

Now there was an FBI raid I think within the past week. But they did not get the CEO's.. So let's see what comes up next.