CA sues Countrywide

Boy, when it rains, it pours. Just as the Illinois attorney general is prepared to file suit against the roughed-up mortgage company, California AG Jerry Brown beats her to the punch. In a civil suit, the state alleges that Countrywide engaged in deceptive advertising and unfair competition by pushing borrowers into risky loans. The 46-page complaint also names Countrywide CEO Angelo Mozilo and president David Sambol, who are accused of being aware of the shady activities. That's where it might get interesting. From the filing:

Defendants viewed borrowers as nothing more than the means for producing more loans, originating loans with little or no regard to borrowers’ long-term ability to afford them and to sustain homeownership. This scheme was created and maintained with the knowledge, approval and ratification of defendants Mozilo and Sambol.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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