Florida sues Countrywide

| 30 June 2008 16:15

From the Wall Street Journal: Florida Sues Countrywide

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

[Angelo Mozilo]

The lawsuit, filed on Monday in state court in Broward County by Florida Attorney General Bill McCollum, alleges that the company put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading.

The action follows similar lawsuits that were filed against the company last week by attorneys general in California and Illinois. Efforts to reach a Countrywide spokesperson were unsuccessful

Bank of America Corp. plans to complete its acquisition of Countrywide on Tuesday, and the 69-year-old Mr. Mozilo will retire.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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