Now that they own Countrywide, The Attorney General of Florida is hitting deeper pockets the day after the Bank of America acquired Countrywide (and all of its liabilities).
This is just another in a spate of suits against Countrywide for unfair practices as it spread the gospel of easy home ownership. But new revelations are emerging in this case -- revelations that go to the heart of being Powered by Principle. Amongst the accusations stated within the suit are claims that Countrywide "threatened to fire its own underwriters if they tried to verify the ability of borrowers to pay". Even when it was perfectly obvious that the borrower would be over-extended, and when conventional (and even extraordinary) standards for loan to income ratios were exceeded, Countrywide personnel rubber-stamped the loans.
What principles were expressed here? Certainly, quick revenue (and higher revenue gained from more predatory loans) was one concern. But where were the concerns about risk management, long-term shareholder value, customer service or any of the other stakeholder claims one would expect?
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