Rejecting the arguments of Countrywide executives and directors that they were unaware of lax loan operations that led to ballooning defaults, Judge Mariana R. Pfaelzer of Federal District Court in Los Angeles ruled Tuesday that she found confidential witness accounts in the shareholder complaint to be credible and that they suggested “a widespread company culture that encouraged employees to push mortgages through without regard to underwriting standards.”

Judge Says Countrywide Officers Must Face Suit by Shareholders [NYT]

Comments (4)

  1. Posted by guest | May 15, 2008 at 1:21 PM

    A back story to this one is about the guy named “Angel” who is buying small homes up for foreclosure in San Diego on the cheap. It’s on Bloomberg now.

  2. Posted by Lowly Assistant | May 15, 2008 at 1:26 PM

    Not true, the real back story to this one is how his malignant melanoma condition is traveling further up his spine, near the nape of his neck. He will soon look like a manilla folder littered with spilled coffee stains.

  3. Posted by guest | May 15, 2008 at 1:59 PM

    Pushing mortgages without regard to underwriting standards…you don’t say. I hope this doesn’t shock anyone.

  4. Posted by kstest3 | May 15, 2008 at 5:19 PM

    test

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