U.S. Sues Wells Fargo: Yet Another Bailed-Out Bank Accused of Fraud

[Fire Walk With Me]

http://www.rollingstone.com/politics/blogs/taibblog/u-s-sues-wells-fargo-yet-another-bailed-out-bank-accused-of-fraud-20121010

This is all just background for the latest news: Wells Fargo is being sued by the State for vast fraud in the mortgage markets. The U.S. Attorney in the Southern District of New York, Preet Bharara, yesterday brought a case against WF seeking "hundreds of millions of dollars" in damages for what it says is a decade of fraudulent behavior, in which WF wrongfully certified more than 100,000 mortgages as being eligible for federal mortgage insurance. Basically, Wells Fargo screwed the FHA and HUD by mass-approving loans without regard for whether they were defective or not. From the L.A. Times:

When Wells Fargo discovered problems with the loans, it failed to notify HUD, which administers the FHA program, as required, the suit said. The action alleges more than 10 years of misconduct.

"The extremely poor quality of Wells Fargo's loans was a function of management's nearly singular focus on increasing the volume of FHA originations – and the bank's profits – rather than on the quality of the loans being originated," Bharara's office said in a statement.

[Vincardog]

1. Please get back to me when any Bankster goes to jail.

[DJ13]

2. If I ever commit fraud

can I pay a fine and get no jail time?

[JesterCS]

3. You know, I worked for wells fargo back in the late 90s

We had this campaign called " Gold Rush " and we were to process and mail as many loan applications as possible. I could do 20 loans an hour. Makes me wonder if I was part of the problem. Paid 10/hour. minimum 5 hours pay per day, even if we had nothing to do.