Wells Fargo's profit and fine

Reply Wed 20 Jul, 2011 02:22 pm
Wells Fargo recently reported huge profits, but the feds fined them most of their profit. What now?

Fed fines Wells Fargo $85 mln for mortgage abuses

WASHINGTON (MarketWatch) -- The Federal Reserve on Wednesday slapped an $85 million fine on Wells Fargo & Co for allegedly steering borrowers into high-cost subprime mortgage loans even though they qualified for safer loans. The fine is the largest civil monetary penalty the Fed has ever assessed in a consumer-protection enforcement action, the central bank said in a press release. The Fed said employees at a subsidiary of Wells Fargo falsified information about borrowers' incomes to make it appear they qualified for loans. Wells Fargo , the bank holding company based in San Francisco, did not admit to any wrongdoing. The order requires Wells Fargo to compensate borrowers affected by these practices. The bank also agreed to improve the oversight of its home mortgage loan business.
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Reply Wed 20 Jul, 2011 03:50 pm
@cicerone imposter,
Crap! That was supposed to be one of our most solid banks, though that might have been because they charge for every little service, and pay damn little for deposits.

Very recently, I saw that BoA had shown some kind of loss, but didn't follow the details. Think we might be in line for more problems?
cicerone imposter
Reply Wed 20 Jul, 2011 03:58 pm
Not many are aware, but there have been about 54 banks that have gone bankrupt or closed by the government. This trend will increase with the deteriorating economy. Less people have money, and consumer spending makes up 70% of our economy. The only way gravity works is down.
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