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TechnoratiWells Fargo: Too Big to Jail?
Everyone wants the economy to bounce bank, and the President's not wrong to believe that the way to revive things is to boost confidence.
But if mass confidence is what it's gong to take, the people at the bottom of our economic pyramid need hope -- not only that they'll have jobs again and homes to keep - but protection against mortgage crooks - and restitution if they've been scammed.
The city of Baltimore is currently pursuing a suit against Wells Fargo.
Wells Fargo stands accused of disproportionately denying minority consumers favorable loans while targeting them for subprime ones with high interest rates, mandatory arbitration clauses and punitive prepayment penalties.
In court papers, Elizabeth Jacobson, who was one of Wells Fargo's top loan officers said, "Wells Fargo mortgages had an emerging markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans."
According to another bank officer, the bank even used software, "to translate marketing materials into various languages, including something called "African American." Tony Paschal (that second loan officer,) contends that the subprimes had sub-names -- "ghetto loans" -- their recipients "mud people."
This isn't small stuff. It's huge. Wells Fargo has faced similar complaints since the 1990s and Baltimore's just one example. Similar suits have been filed in Texas, Tennessee, and California. And Wells Fargo which denies the charges, is not alone. Joining them are most if not all of the nation's top bailout recipients including Chase Manhattan and Citigroup.
If the president really wants the economy to bounce back, confidence needs to be restored. Well here's a question: Wells Fargo -- which (according to the FCC) gave out nearly $1 million in campaign contributions and spent $3.6 million lobbying federal officials in the same period -- stands accused.
We've all become familiar with banks that are 'too big too fail'. Are some also too big to jail?
12 Comments so far
Show Alloldcreditiste just joining in to pick a nit.
The writer says President's and Wells-Fargo's when I think that President is and Wells-Fargo is would be what is meant and easier to read. It is common to the writing community and i think it is a bad trend in the changing of our language.
RedPill,
Wow, what a frustrating, angering experience you have had! I empathise, though haven't gone through what you have; haven't even been able to have a mortgage, with all of the importation of H-1B hi-tech professionals for replacing U.S. citizens and residents, so can't empathise as fully as someone who's gone through anything like you have. Nonetheless, what you described for experience is enough to anger readers even like myself.
===========================
"carrigan June 10th, 2009 9:46 pm
Warren Buffet owns Wells Fargo does he not.
Isn't he everyones benevolent grandfather? Can't jail him now could we?"
http://en.wikipedia.org/wiki/Warren_Buffet
Quote: "Warren Edward Buffett (born August 30, 1930) is an American investor, businessman, and philanthropist." And 99% of philanthropists are hypocrites, imperialists, artistocratic, anti-democracy, ...; I'll interject with, here. Continuing the quote, "He is one of the world's most successful investors, the largest shareholder and CEO of Berkshire Hathaway,[4] and ...."
http://en.wikipedia.org/wiki/Berkshire_Hathaway
QUOTE:
Investments
Equities - Beneficial ownership
This includes some of the companies where a Berkshire Hathaway stake is 5% or more of the outstanding stock, as reported in the last proxy statement SEC filing, and the latest annual report. In order of percentage stake:
* Wesco Financial Corporation (80%),
* Moody's Corporation (19.1%),
* USG (19.0%) ,
* The Washington Post Company (18.2%),
* Burlington Northern Santa Fe Corp. (17.5%),
* American Express Co. (13.1%),
* Wells Fargo (9.2%),
* The Coca-Cola Company (8.6%).
END QUOTE
(next url broken over two lines)
http://en.wikipedia.org/wiki/
List_of_assets_owned_by_Berkshire_Hathaway
"Man", is that a ... lengthy list.
QUOTE:
Common stock holdings
...
* Wells Fargo (9.2%)
END QUOTE
Maybe some of the other cies Berkshire Hathaway owns, and has investments in, also have owndership in Wells Fargo, which, I guess we could say, would increase BH's investments in WF; indirectly, but nevertheless really. But I'm not going to verify any of them, so much less all of them.
However, I just tried a Web search using "Wells Fargo" "Warren Buffet", both in quotes, and the first link turned up indicates by the title of the article at he praises WF. It's a Bloomberg article.
"Buffett Dismisses Government Stress Tests, Praises Wells Fargo",
by Erik Holm, Betty Liu and Andrew Frye, May 3 2009
(url broken over two lines)
http://www.bloomberg.com/apps/news?sid=
aocwzKPyyegc&pid=20601087
According to the following website, he has 16.x% of his stock portfolio invested in Wells Fargo & Company; and there are associated comments by James Cramer, who's someone I haven't read about before (I believe not, anyway).
http://warren-buffett-portfolio.com
As for being able to "jail him", I DOUBT that that's possible in any practical sense of "possible". See the following article, though many would say that what it says is not true. The governments have to be operated in terms like what the following article says though, because what's going on is not purely accidental.
http://www.globalresearch.ca/index.php?context=va&aid=13808
Warren Buffet owns Wells Fargo does he not.
Isn't he everyones benevolent grandfather? Can't jail him now could we?
Warren Buffet owns Wells Fargo does he not.
Isn't he everyones benevolent grandfather? Can't jail him now could we?
Kinda off subject here a little, but I get SOOOO mad that your mortgage can be sold to anyone without the consent of the mortgagee. I understand most loans make you sign for permission to do so if you want the loan.
However, my mortgage was bought and sold at least half a dozen times in the last 9yrs. I never consented or had knowledge of this until after the fact. WF bought and sold my mortgage twice, WAMU bought and sold it and a coupla other people had their turn at it too. Then WF turned me down for a mortgage refi once cuz they determined I wasn't qualified for a loan they bought and sold twice! What BULLSHIT!
I would not have given consent for this, cuz they changed the terms (WF was especially guilty of this, re: MIP and assumability). Which I believe was illegal. I would never have consented for these banksters to buy my loan anyway.
I finally dumped them all, my credit union owns my loan now, but even they made me sign a paper giving them the right to "sell" my loan. So the MFers I hate might end up with it again. Assholes all, even the credit unions.
Biting the bullet in the next month by dipping big-time into my credit union saving account to pay the balance of my now Wells Fargo owned mortgage. Will tell Wells Fargo, if not to jail, at least go to hell, go straight to hell, do not pass 'Go', and do not collect another $200 in interest.
Now, about that Washington Mutual (the last previous owner of several previous owners of my mortgage) home equity line of credit, and that Capital One credit card............
No Credit? No Problem!
Just sign on the dotted line and we will "print" some money to loan you. Then we will sell your mortgage to our friends who can really turn it into mega-bucks.
"Are some also too big to jail? "
Er, Laura? "Frankly, they own the place." Did you miss that one a few weeks back? Or are you, like so many others, still pretending that Sen. Durbin was, I don't know, just kidding or something?
They, the banksters, own the place, our government. Laura, do you honestly believe the employees of the place have either the will or power to send their owners to jail?
Laura is a stooge for Obama. Obama gave billions away via his half of TARP, without accountability standards. No one can tell you how the money was spent. Everyone who wrote that legislation (or voted for it) is culpable. Laura is just another progressive wannabe who offers shallowness instead of depth. Yawn.
HA...your assuming that there's a difference between republicans and democrats.
smipypr
Too big to jail? The question should be whether or not there is a jail big enough. Maybe the bankers could all share cells with the Gitmo guys once they come over to the US prison system. We have heard that if the banks are subjected to re-regulation, with interest rate caps, commercial banks separated from investment banks, and the insurance companies out of the banking/investment business(es), all hell would break loose. All hell has broken loose; no one is ready to admit it. Instead of conducting government business through photo ops and Sunday chat shows, the Obama administration should be calling in the Democratic leadership in Congress, as well as the entire Cabinet. He should precede the gathering with a short speech - something like, "I'm the President. Here's the way it's going to be." Run down the problems, suggest paths to correcting them, and then lock all of the goofs in a room until they can come up with a big, tough, wide-reaching agenda. Drag it to Congress, and steamroll the Republicans. Oops. I'm awake now...
"Instead of conducting government business through photo ops "
Obama is already busy orchestrating the largest gift of public wealth to private businesses in the history of the world. That's more than a photo op.