RSS
 


Bloomberg Reports on Another Slap on the Wrist for Criminal Behavior for Wells Fargo

20 Jul

Bloomberg reports this incredibly biased story on the Wells Fargo criminal behavior where we learn that Wells Fargo is the one telling us how many borrowers may be eligible for the ‘compensation’ and that the Fed Board, well, guess what? Is going to take their word for it – oh and it will cost Wells 85M.

Yawn.

That might account for a 1% penalty against their [known] earnings in one quarter of the free for all they called the ‘mortgage bubble’    or not.

Everybody suck it up as Wells gets away with it again. Just like the Mexican drug cartel money – they just keep getting told it’s ‘not okay’ but the penalty is so small it doesn’t matter…

Notice that there are several levels of fraud outlined in the story – from steering to doctoring documents – hmmm. What would happen to any BORROWER found doing such things???  Doctoring documents? Isn’ that a FEDERAL CRIME???

Not when the banks do it – it’s just a penalty and then a need to clean it up internally – read: hide it better next time.

And the clarity and detail of the compensation for borrowers is stunning… By which we mean, of course: Non-existant.


Wells Fargo Fined $85M for Subprime Loans

By Dakin Campbell – Jul 20, 2011

Wells Fargo & Co. (WFC), the largest U.S. home lender, agreed to pay a record $85 million fine to settle Federal Reserve claims it steered borrowers into costlier loans and falsified data in mortgage applications.

Employees at Wells Fargo Financial, the lender’s consumer- finance unit, pushed customers who may have been eligible for prime interest rates into loans carrying higher rates intended for riskier borrowers, the Fed said today in a statement announcing the settlement. Separately, sales personnel used false documents to make it appear borrowers qualified for loans when their incomes made them ineligible.

Wells Fargo will “work closely with the Federal Reserve to provide restitution to customers who may have been harmed, and to reinforce our internal controls,” Chairman and Chief Executive Officer John Stumpf said in a separate statement.read the rest of section one here

 

 

But this is the best part – look at all the ‘facts’ that are included here that tell nothing and diminish the look and feel of the crime:, and look where they come from… Why – the one accused of the criminal actions, of course!:

 

Compensating Borrowers

Wells Fargo must compensate borrowers harmed by the practices, which may exceed 10,000, according to the Fed. Less than 4 percent of the about 300,000 mortgage loans made by the lender between January 2004 and September 2008 are eligible for restitution, the company said.

 

Is “the Company” the Fed or Wells Fargo?  This is very unclear writing… but we are going to guess it was Wells, because although the FEd is a private corporation, we guess Bloomberg doesn’t refer to them as “the company”…

 

Wells Fargo said it will submit a plan to the Fed within 90 days laying out certain oversight and lending procedures.

The Fed also issued consent orders against 16 Wells Fargo employees that bar them from working in the banking industry, the regulator said in the statement. The employees have been fired, Wells Fargo said.

 

Ah.  So that AP Exclusive of July 18th on the continued presence of ROBOSIGNING and ROBOSIGNED foreclosure paperwork won’t be coming from people over at Wells – is that it?  They’ve all been *fired* as if they were the brains behind this scheme – and by the way – who is responsible for their behavior or their crimes? Not Wells Fargo – they just get minor penalties and fines and are still directing the “investigation” by telling the Fed what the numbers of the incidents are… Handy to be the Banks no one will touch… not so handy to be the employees who are let go after following what was clearly company policy. (If it wasn’t why did it continue or, just as arguably, start in the first place??)

 

Tags: , , , , , , ,

Leave a Reply