goodbye Wells Fargo

[WaterMan]

http://www.latimes.c...0,3201029.story

 

would you like more corporate welfare on the way out?

 

 

From comments:

 

Pg. 162 Angelides Commission Report.

 

Darcy Parmer, a former quality assurance and fraud analyst at Wells Fargo, the

second largest mortgage lender from 2004 through 2007 and the largest in 2008, told the Commission that “hundreds and hundreds and hundreds of fraud cases” that she knew were identified within Wells Fargo’s home equity loan division were not reported to FinCEN. And, she added, at least half the loans she flagged for fraud were nevertheless funded, over her objections.

 

Pg. 171

In 2005, examiners from the Fed and other agencies conducted a confidential

“peer group” study of mortgage practices at six companies that together had originated 1.3 trillion in mortgages in 2005, almost half the national total. In the group were five banks whose holding companies were under the Fed’s supervisory purview—Bank of America, Citigroup, Countrywide, National City, and Wells Fargo—as well as the largest thrift, Washington Mutual. The study “showed a very rapid increase in the volume of these irresponsible loans, very risky loans,” Sabeth Siddique, then head of credit risk at the Federal Reserve Board’s Division of Banking Supervision and Regulation, told the FCIC. A large percentage of their loans issued were subprime and Alt-A mortgages, and the underwriting standards for these products had deteriorated.

 

Edited October 10, 2012 by WaterMan