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Wells Fargo Admits to a Decade of Fraud and the Govt Does Nothing

Posted by on April 17, 2016 in Bankers & Wall St., Corruption, Government with 25 Comments

Matt Agorist|TheFreeThoughtProject

Top megabank, Wells Fargo & Co just admitted to defrauding the United States government for nearly an entire decade, which subsequently led to the housing market collapse, and no one is going to be punished.


On Friday, the largest US mortgage lender and third-largest US bank admitted to deceiving the U.S. government into insuring thousands of risky mortgages.

According to the settlement, Wells Fargo “admits, acknowledges, and accepts responsibility” for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance, reports Reuters.

Wells Fargo also admitted to having from 2002 to 2010 failed to file timely reports on several thousand loans that had material defects or were badly underwritten, a process that Kurt Lofrano, a former Wells Fargo vice president, was responsible for supervising.

 

The intentional deception by this corrupt bank led to an insurmountable debt liability for American taxpayers as the FHA was forced to pay out insurance claims on all the defective loans.

As Reuters reports, Friday’s settlement is a reproach for “years of reckless underwriting” at Wells Fargo, U.S. Attorney Preet Bharara in Manhattan said in a statement.

“While Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust,” Bharara added.

However, Bharara’s words ring hollow when looking at the bank’s punishment. For robbing the public through defrauding the US government, not one single Wells Fargo employee will face criminal charges. The bank was merely ordered to pay a $1.2 billion fine. This is hardly a slap on the wrist considering the turmoil that ensued from such criminal practices.

This punishment is also a kick in the teeth to the American public who are the ones who suffer most from these megabanks fleecing the country through irresponsible and fraudulent actions only to be ‘quantitatively eased’ back into profitable standing.

Franklin Codel, president of Wells Fargo Home Lending, in a statement, said the settlement “allows us to put the legal process behind us, and to focus our resources and energy on what we do best — serving the needs of the nation’s homeowners.”

Imagine for a moment that a rapist, responsible for raping thousands of women, was just let off with a fine and responded with a similar statement. Wells Fargo, who financially ‘raped’ the public for nearly a decade, is essentially saying, “I have been raping women for years, but we can put that behind us now and focus our energy on moving forward.” And the government thinks this is okay.

With their track record of letting megabanks run amok in the US, this settlement comes as no surprise.
Read more here.

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25 Reader Comments

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  1. 1055590474479544@facebook.com' Glenda Valeroso says:

    Tessa June Fernandez

  2. 10205715924649151@facebook.com' Rick Ripley says:

    Money talks. .

  3. 264872830518837@facebook.com' Ewm Mi says:

    Bad bank

  4. 736207456521206@facebook.com' Camille Person says:

    If people are shocked by this? Then they haven’t been paying attention….It’s hard to shock me nowadays.

  5. 229818800705000@facebook.com' Eduardo Rivero says:

    We already knew this and the reason why politicians won’t do anything about it is simple, because politicians are in on these frauds and they know that if they dare to say anything shit will hit the fan. Let’s not be naive about this, we all know what’s going on is just that most of us are focusing in shit that don’t matter instead of the stuff that matters. Being informed is not the same as being awake, people need to wake up

  6. 189335694775890@facebook.com' Koi Wannasnack says:

    Citizens arrest the owner, put them in jail, take their money and make them bankrupt. We dont NEED the government to take action, we the people need to. If the government won’t stand for library and justice, the people must

  7. 588677424634477@facebook.com' Nụ Hồng Mong Manh says:

    Good luck fans of Conscious Life News…I was not able to answer all, if you are intelligent people,…
    LMDYDly Are u ready? join now ? –> https://goo.gl/9iiJOj

    Thanks for view: Imagine for a moment that a rapist, responsible for raping thousands of women, was just let off with a fine and responded with a similar statement. Wells Fargo, who financially ‘raped’ the public …

  8. 397859487085323@facebook.com' David Agrue says:

    Joseph Agrue

  9. 590233041130947@facebook.com' Tanya MH says:

    And this is the same deal as the CDC that haven’t even been reprimanded yet

  10. 1717587408526815@facebook.com' Allen Whitehead says:

    IN THE END, THE MARKET WILL GOVERN. WAIT AND SEE.

  11. 10209470506098688@facebook.com' Tom Carrier says:

    The CEO should be jailed.

  12. 519974648151176@facebook.com' John Wayne says:

    U. S. Marine Major General S. Butler was the First to Warn America, “The Business Plot.”

  13. 10207653693326632@facebook.com' Angie Fitch says:

    James

  14. 10154404286855995@facebook.com' Eric Smithers says:

    BANKSTERS RULES AND WE GET TO DROOLS.

  15. 10208272276780478@facebook.com' Maritza Martinez says:

    Unbelievable

  16. 10153445343586141@facebook.com' R Lei Kahiwalani says:

    On the backs of the poor

  17. 1626699340936474@facebook.com' Terry Kostiuk says:

    Disgusting!

  18. 10153679399929538@facebook.com' Hana Falwasser says:

    Just stop banking with the company. Try putting them out of business

  19. 810444775727238@facebook.com' Md Azeem says:

    Well this is not true I’m working in Wells fargo we respect our customers every Wells fargo employee has a vision that, “To satisfy our customer financial needs and help them succeed financially”

  20. 10201794413259542@facebook.com' Frann Beckel says:

    Interesting, Jen Beckel-Pletcher

  21. 915999761798490@facebook.com' Victoria Koegle-Barkan says:

    Sure enjoyed bankrupting against these idiots.

  22. 10153731761504401@facebook.com' Maria Gonzalez says:

    Fuck news. I’m hearig this sinse i have memory. … so what we are doing for change it?

  23. 10153731761504401@facebook.com' Maria Gonzalez says:

    Buy buy buy…. and think you are inocent ; (

  24. 10154627933449942@facebook.com' John P. Lim says:

    Is this true?

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