When I saw this article, I had to read it twice. I couldn’t believe what I was reading. A judge, in California, is actually holding someone accountable for their actions and making them answer for what they have done? Did the world start spinning backwards or something?

Directors and officers of mortgage lender Countrywide Financial (CFC.N) must answer shareholder accusations of insider trading and failure to monitor lending practices that led to the company’s collapse, a federal judge in California has ruled, the New York Times reported.

The New York Times said on Wednesday that Judge Mariana Pfaelzer of U.S. District Court in Los Angeles rejected arguments made for Countrywide executives and directors that they were unaware of lax loan operations that led to ballooning defaults.

Countrywide had “red flags” for months if not a couple years before the mortgage industry balloon popped. I just can’t believe that judge is going to make them answer questions about what they knew and why they ingored those flags.

Wow.

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