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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsU.S. Sues Wells Fargo: Yet Another Bailed-Out Bank Accused of Fraud
http://www.rollingstone.com/politics/blogs/taibblog/u-s-sues-wells-fargo-yet-another-bailed-out-bank-accused-of-fraud-20121010This 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.
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U.S. Sues Wells Fargo: Yet Another Bailed-Out Bank Accused of Fraud (Original Post)
Fire Walk With Me
Oct 2012
OP
Vincardog
(20,234 posts)1. Please get back to me when any Bankster goes to jail.
DJ13
(23,671 posts)2. If I ever commit fraud
can I pay a fine and get no jail time?
JesterCS
(1,828 posts)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.