Wells Fargo Compounds Misbehavior with Retaliation

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Bank Closes Accounts of Critics

Editor’s Notes:  

Wells Fargo’s story has been as bad or worse than many of the stories that have been published about banks committing crimes (forgery), misrepresentations is court, and fraudulent foreclosures. But Wells escaped a lot of media attention even with mammoth fines and penalties imposed by enraged Judges. We shouldn’t be too surprised by all this bullying and intimidation — after all, it is even a huge problems in schools which makes one wonder what is happening in the homes.

Their strategy seems to be to say anything that gets the job done (foreclosure) regardless of the facts or the law. It starts off with them having their attorney represent them in court, proffering “facts” that are not in evidence and turn out to be completely untrue. More specifically, they tell the court and the borrower that they are the creditor and then later, when it turns out the representation was completely untrue, and it is time for the homeowners to get attorneys fees and costs, they tell the Judge that they made a mistake and that they are not really the creditor, just the servicer, through America’s Servicing Company, which is not even a legal entity but simply a department within the Bank.

Now they are striking back through their commercial banking operation finding excuses to close or freeze accounts of those organizations that are critical of Wells Fargo behavior. We can expect more of this bullying and intimidation, rather than less. I expect that the other big banks will start doing the same thing. We have already seen how our own effort here at LivingLies have been hampered in getting simple title reports, because the sources of this on-line data, while open to the public, often mislead any inquirer into “plans” that won’t give them the right data.

Matt Weidner has cataloged some of the events in the article below. Hat tip to him for the effort. The media problem will heat up against the banks when the investigative reporters finally get the point: the mortgages are invalid, there was no financial transaction between the parties recited on the “closing” documents, and the terms of repayment shown to the lender (pension funds etc., who advanced the money for the loans) were different from the terms shown to the borrower.

And when the media realizes that the money never followed the document trail from beginning to end the fun will really start. The transaction was between the homeowner and the pension funds through an undifferentiated commingled escrow account where there were no decisions on “bundling” (which never actually took place). It was just money in an account that was used to fund mortgages without getting a signature from the homeowner borrower on the actual transaction and without the investor lender knowing the true nature of the underwriting and funding process.

In order for these proceedings to start leaning toward the borrower, the borrower and their attorney must educate themselves enough to deny the debt, deny the default, deny the note, deny the mortgage and everything else that is being presumed by the would-be forecloser. It is the borrower’s job to to argue passionately and persuasively that there are material facts in issue on which the borrower is entitled to a fair hearing on the merits. Instead borrowers and attorneys are reading the pablum fed to them by the banks’ publicists and they are failing to object to misrepresentations in court without facts in evidence, failing to object to lack of foundation, competency of witness and hearsay.

By the time the case gets argued by the homeowner, it is already established in the Judge’s mind that you took a loan, it was from these people who are foreclosing or one of their affiliates, you failed to pay it and you defaulted on the terms of repayment. Now you want that same judge, with those thoughts in his/her head, to start ruling for you because some of the documents were improperly prepared. The biggest mistake homeowners make is trying to win the entire case in the first hearing or in their first pleading. Any good trial lawyer knows that is impossible. The pleading and argument of the homeowner should focus on denial of any facts that would support any lawsuit, foreclosure or sale. You have had lots of loans, but none of them were with these people or their predecessors. Thus the note was procured by trick (fraud in the execution) based upon false pretenses (Fraud in the inducement) and predatory lending practices (violations of TILA).

It was all a living lie. And instead of taking their just deserved punishment, Wells Fargo is leading the way to punish those who tell the truth. Brad Keiser who co-presented in our first national tour liked to quote George Orwell who said something along the lines of “In a world of lies, the most courageous act is to tell the truth.”

WOW- Writing Against The Banks Can Get You Punished…


By Matt Weidner

Scary stuff from Zombeck:

A wrap-up of stories and posts you might have missed or overlooked — the ones below the fold.

For quite some time Wells Fargo managed to stay below the media’s radar and let the other guys like Bank of America and JPMorgan Chase, for example, bear the brunt of consumer and activist outrage. Lately, it seems, they’ve had to prove that they’re equally nasty and contemptible as the others. Foreclosing on priests and temples; closing bank accounts without apparent reason; promoting and profiting from private prisons; and ripping off towns, states and counties with bid rigging that skimmed money slated for schools, hospitals, and nursing homes.

Wells Fargo can’t seem to get enough bad press these days. While working with the “any press is good press” theory may work for loud mouths like Rush Limbaugh and Glenn Beck, it’s not a strategy normally employed by most consumer based businesses.

In a piece I wrote a couple of weeks ago I speculated that Wells Fargo had closed the bank accounts of ML-Implode’s Aaron Krowne out of retribution for Martin Andelman’s articles about Wells Fargo’s egregious and reprehensible track record in respect to homeowners and foreclosures. It’s important to note that Andelman blogs independently, is not paid by ML-Implode, and ML-Implode does not dictate or control what he writes. His blog, however, is hosted on ML-Implode. In essence, it would be like closing Arianna Huffington’s bank account because of something I wrote on Huffington Post.

Wells Fargo took particular offense, asserting that the headline was factually incorrect, but claimed that for privacy reasons they cannot disclose publicly the specifics behind the decision to close accounts. They asked that the title of the article be changed to not use the word “retaliation” and that somehow the original headline, “Wells Fargo Freezes Account in Retaliation,” was inaccurate since one of the articles mentioned, “Husband’s Suicide Yesterday, Wells Fargo to Evict Wife Tomorrow Anyway,” by Martin Andelman was written after they had made the decision to close the account. Andelman’s article was written on May 14 and Wells Fargo made the decision to close Krowne’s account on May 11.





32 Responses

  1. on guitar tuner

    Wells Fargo Compounds Misbehavior with Retaliation | Livinglies’s Weblog

  2. […] Read more… Posted in Banks, MERS, News Around The Country, States « Eating the Potato Stops the Game Loan Modifications Stop Foreclosures, Study Shows. DOER ALERT! » You can leave a response, or trackback from your own site. […]

  3. […] Read more… Posted in Banks, MERS, News Around The Country, States « RSN: The American People Are Angry Loan Modifications Stop Foreclosures, Study Shows. DOER ALERT! » You can leave a response, or trackback from your own site. […]

  4. get ENRAGED: says war professor Allen Sabrosky: http://www.youtube.com/watch?v=4RcsqqQgfOI

  5. @MJ, you must take legal action before the sale date. You need to get an Attorney ASAP! There is no dealing with the Devil! Get an Attorney NOW!

  6. @MJ

    Sorry to tell you they are ALL lying to you…and our government is condoning it.
    Just keep trying for a modification and SCREAM at them that they CANNOT foreclose/sell while you are being considered for a modification—this is the number one thing you have to throw in their face—it is against the law to go through with the sale when you are in the middle of being considered for a mod!!! Give ’em hell!!

  7. I have been trying to get a mortgage modification for over 3 years due to disability retirement from 26 years of federal service. My loan servicer is Bank of America. Initially they could not tell me who my investor was but eventually came up with Wells Fargo.

    I have filed so many mod. request’s I have lost count. All of which I was told were declined by Wells Fargo with no reason given.

    I was informed somewhere during this journey/battle that my loan was a MERS loan. I found a link yesterday to search for your MERS investor and the MERS search indicates that both my “Servicer and Investor” are Bank of America.

    What in the world now. I currently have a modification request being processed and a foreclosure auction scheduled for July 25,2012. I will be contacting MERS by phone tomorrow and see if I can confirm the investor.

    If it is actually BOA, then they have been denying modifications that I qualified for for over 3 years saying Wells Fargo was the one denying them. This is “really” driving me crazy. Sometimes I feel that Wells Fargo and BOA are one and the same or at least tied to each other in some way.

    Sincerely, MJ

  8. @Nora: the citation actually refers to since 3000 years ago!!!

  9. @Nora & Linda: actually nothing has changed since 3000 years, because the citation is from the historic book of The Quran written around 1430 years ago of the events after Moses jumped ship out of frustration 3000 years ago— & Linda banks are squeaky clean except laundering crime money a few trillions here and there once in a while: http://www.bloomberg.com/news/2010-07-07/wachovia-s-drug-habit.html

  10. @guest June 29th at 10:01

    Nothing has changed much in 1400 years, has it?

  11. @enraged

    You are absolutely right. By “loyal,” I meant that I stayed with the one bank for a long time and that doesn’t count for anything anymore.
    I believe it used to about 30 years ago, though.
    Times have certainly changed.

    Repeat business is no longer a factor for any corporation, it seems, because there’s a sucker born every minute and banks get their new business. In fact, banks are no longer in business to help customers. I think that grooming their image of loyalty to the customer is and pretend to offer so many services, is a formality they are required to maintain in order to keep their doors open and to call themselves “banks.”
    Otherwise, my opinion of most banks is that they are simply money launderers and thieves. They would much rather not deal with customers at all…especially ones with small deposits.

  12. here is a more complete citation: http://quran.com/2/82-88

  13. Yes Nora, and here is a documented 3000 history of this crime as written 1400 years ago: http://quran.com/2/85

  14. July 02, 2012

  15. Make no mistake; it’s a war between the Moneychangers and the poor people they view with disdain. It started in the temple in Jerusalem. Read Mark 10:25; “It is easier for a camel to go through the eye of a needle than it is for someone who is rich to enter the kingdom of heaven.” It can only end badly for the banksters, whose arrogance makes them view anyone with more money as an idol, and anyone with less as the equivalent of an ant to be stepped on.

    Jesus fashioned a whip out of cords and chased the moneychangers out of the temple for taking advantage of the people who came to worship by charging them interest for the special coins they needed. It is the only reference in the Bible where Jesus became violent. The worship of money angers God. I would imagine He is pretty pissed about now.

  16. WF + all other banks, have nothing against anyone, they only want your homes, everything in them, and everything in your accounts to continue bailing themselves out, that’s all….. OH, and of course: they want you out of county so you cant pester them no more just like these folks!!! http://livinglies.wordpress.com/foreclosure-defense-forms/people-players-and-resources/state-laws/california-laws/#comment-104691

  17. Here is an interesting twist: When these guys close out your account involuntarily, they also “publish” you with ChexSystems, that notorious blacklist outfit that acts as a gatekeeper to keep you from opening an account anywhere else. Then Wells sends you their check for whatever balance they decide to hand over, a check that you cannot cash, as with the ChexSystems blacklist – provided by Wells – you cannot open up any account on this Continent. Solution: sue Wells for theft by conversion, for breach of the covenant of good faith and fair dealing, for fraudulent inducement, and for defamation.

    To explain “fraudulent inducement,” remember that Wells (along with these other guys) “holds and held itself forth to the public at large and to this Plaintiff as an institution of great moral probity, and invited the public at large and this Plaintiff to repose their faith, trust and confidence in Defendant Bank.” See, it is not as if Wells put up a banner at its branches saying :”Hey, People, listen up! We are thieves and scoundrels and scalawags and pirates, and if you put your money here, we will steal it from you and ruin you!” Since you have not been put on Notice as to their true character, and you were misled by their advertising, you did put your faith, trust and confidence in Wells Fargo, and were fraudulently induced to so repose your faith, trust and confidence.

    And their response will be, predictably: “unclean hands.” They will assert, “We closed his account, kept his money, and reported him to ChexSystems because the customer is a scoundrel, and we demonstrate that because he does business with scalawags [namely, us].” So, you let them go make that representation to the jury. Sue the bums. Drown them in litigation.

  18. And Tn,

    Whacky is definitely in the eyes of the beholder. Don’t forget that, four years ago, your own party decided to pick Palin as McCain’s running-mate. The woman is a narcissistic, ignorant, untraveled, uneducated, fanatic, dangerous lunatic who would throw us in a religious war at the drop of a hat

    So, let’s talk about “whacky”, shall we?

  19. @Tn,

    The site itself is “whacky”. The reasoning in the article makes a lot of sense, however.

    And I posted some reliable articles as well, such as what is currently happening with British and European banks. the fact that “whacky” is now confirmed by MSM is all we should really care about: it is blowing. As simple as that.

  20. […] View the original here: Wells Fargo Compounds Misbehavior with Retaliation […]

  21. that’s a pretty wacky website enraged. other “hot headlines” from just above the bank hacking one you cite :

    Katy Perry’s “Wide Awake” : A Video About Monarch Mind Control
    Kepler Scientists Find Freaky Solar System That’s Unlike Anything We’ve Seen Before
    “Prometheus” – A Lesson in Illuminati Religion
    Religion Would Likely Survive Alien Life Discovery

  22. This is it. Get your friggin’ money out now. The next few weeks are going to be very hectic. it is no longer a “fringe media” story. it is worldwide and MSM is talking about it. Get your money out.

    June 29th, 2012 | Category: News | Leave a comment

    What’s Really Going On In The Multi-Billion Dollar Bank Hacking World
    Sharefrom Steve Quayle:

    Right now banking systems the world over are going into meltdown due to this global syphoning hack that is occuring in over 60 banks worldwide with untold losses in the billions of dollars and counting.

    What I want all of you to know is this. It is DAMN impossible for any one hacking group or individual to pull this off. The sheer speed and scope of the operation as well as the precision through which it is being carried out leads me to believe an advanced source is at play.

    Look you can not simply hack this many accounts in this many banks simultaneously without leaving any tracks and yet there are no tracks left behind just a bunch of dead end false leads that lead no where.

    My sources have told me that the algorithm used in this operation is very very advanced and “they have never seen anything like this.” This leads me to one conclusion. A false flag, an inside job designed as a pretext to a broader event. I have been warning about a financial collapse for some time, I have also warned of an impending bank holiday as well as the market indicators pointing to World War Three. I strongly believe this event would be used in any one of these ways.

    All of our banking software has back doors built into them for the anonymous power brokers/masters to use as they deem fit. This is an inside job that is done by an International Banking/ Intelligence Agency conglomerate who would have the accessibility, the infrastructure and means to pull this off.

    I fear this is a huge prelude to a massive event.

    Read More @ SteveQuayle.com

  23. I said it: the beginning of the end for banks. Even if we don’t see it here (yet), it doesn’t mean it isn’t happening. I always knew it couldn’t continue.

    20 More Banks Rigging Interest Rates: British Bankers Now Facing Criminal Inquiry Over Scandal That Was Kept Secret For Years
    Posted by admin on June 29, 2012 in World Events · 0 Comments

    2 EmailShare0diggs
    Daily Mail

    ■Barclays shares drop 15 per cent as pressure on Diamond grows
    ■George Osborne promises new criminal sanctions for market abusers
    ■RBS, HSBC and Lloyds all named as under investigation as scandal widens

    PUBLISHED: 17:53 EST, 28 June 2012 | UPDATED: 01:56 EST, 29 June 2012

    Hundreds of bankers across three continents are embroiled in the interest-rate fixing scandal that has left Barclays chief executive Bob Diamond fighting to save his job. [Comment mine: that would be Europe, the US/North America and Asia, probably via HongKong and Singapore, although Africa, and more specifically Kenya, Nigeria and other English-speaking countries have had their share of scandals…]

    As pressure intensified on Britain’s highest paid banking boss to quit, MPs heard a string of other financial institutions across the world were under investigation.

    At least 20 banks are believed to be under suspicion, with growing demands for a criminal investigation.

    Barclays Bank Tower at Churchill Place, Docklands: The bank has been fined £290million over attempts to rig money market interest rates. HSBC is one of the twenty other banks also under investigation, it emerged today

    Barclays’ shares crashed by 15.5 per cent in a day as the implications sank in, wiping £3.7billion from its value, with other banks also hit.

    Barclays has been fined £290million after devastating emails revealed that its traders manipulated the London Interbank Rate (Libor) – the rate at which banks lend money to each other.

    Chancellor George Osborne told the Commons the exchanges ‘read like an epitaph to an age of irresponsibility’.

    Read the rest of the article here: Daily Mail

  24. Bankers Fleeing Europe Crisis Head to Singapore
    Published: Friday, 29 Jun 2012 | 6:20 AM ET Text Size By: Rajeshni Naidu-Ghelani
    Assistant Producer, CNBC

    A 37-year-old Paris-based French investment banker, who’s worked in London and New York, has been looking for a job in one of Asia’s financial hubs, Singapore, for the past six months.

    Jupiterimages | Getty Images

    A director at an asset management firm owned by one of France’s big banks, she asked to stay anonymous, but told CNBC that even her husband, a portfolio manager, was on the lookout for work in Singapore.

    She added that they would move to the city-state with their two children as soon as one of them lands a job.

    “Singapore seems like a very green field compared to Paris,” she said. “It looks like what Europe was 20 years ago, in the sense it’s got a lot of opportunities in terms of new prospects for the markets.”

    The French investment banker is one among a growing number of bankers looking to leave Europe as deteriorating economic conditions together with tougher regulations have slowed business and led to job cuts.

    Slideshow: Countries With the Highest Unemployment Rates
    “It’s very, very slow here [in Europe]. On top of that, there are a lot of regulations adding up on each other, so it makes things a bit difficult,” she said.

    Several global recruitment firms have told CNBC they’ve seen a significant increase recently in the number of European bankers wanting to relocate to the Southeast Asian city-state.

    According to Stella Tang, Director at recruitment agency Robert Half, there has been a 20 percent increase in investment banking applicants from Europe since 2009, with Europeans now overtaking the Americans.

    At recruitment firm Hudson, more than 50 percent of inquiries for Singapore-based finance jobs have been coming from Europe since September last year, with the majority of applicants looking for investment banking roles.

    “The market conditions in places like Europe and the U.K. continue to deteriorate and there is a perception out there that market conditions are significantly better in Singapore,” Craig Brewer, Director of Banking, Financial Services & Legal at Hudson said.

    Though Singapore has very close trade and financial links with Europe and there are worries that a further escalation in the euro zone debt crisis could push its economy into turmoil, firms in the city are still hiring.

    “The drive to hire is strong among the largest ones [companies], where 45 percent of them said [in a survey] they are increasing their head count this year,” Tang said.

    But despite the bullishness over Singapore’s job market, Tang adds that the financial center has not added a huge number of investment banking jobs over the past year, and Europeans coming here have had to take a salary cut.

    “When U.S. or U.K. investment bankers come to Singapore or Hong Kong, they will have to take a pay cut. The pay cut could be anything between 10 to 30 percent,” she said.

    Andrew Norton, Regional Managing Director South East Asia, at Michael Page International backs that trend saying he’s seen bankers from Europe willing to relocate without expatriate packages that include housing and school allowances.

    He adds that what they lose out in terms of perks gets compensated by the low tax rate in Singapore. “In fact, some of these candidates find themselves in a better-off position compared to when they were in the U.S. and Europe,” he said.

    Asian Bankers Returning Home

    The slowness in European and U.S. markets is also leading to more Asian-born bankers returning home to work, according to Norton.

    “They [Asian-born bankers] feel the risk-reward trade-off is better and that they can add more value through local expertise and language skills,” Norton said.

    Current DateTime: 04:03:44 29 Jun 2012
    LinksList Documentid: 48007973
    Singapore Wants Foreign Banks to Go LocalCredit Suisse to make heavy job cuts in Europe: sourcesGoldman Sachs Slashes Dozens of Jobs in US
    Malaysian-born Wai Keng Kwok, 33, is one Asian-born banker looking to make a fresh start in Singapore. Kwok moved to the island-nation in February, after working for Morgan Stanley [MS 14.405 0.535 (+3.86%) ] in New York for five years, to take up the role of chief operating officer at a local hedge fund started by a friend.

    Kwok says she decided to move to Singapore to be closer to her parents living in neighboring Malaysia and because she didn’t think she would be able to get the same level of entrepreneurial opportunity elsewhere, particularly in Europe.

    “Out of Southeast Asia, I believe Singapore is the only place that’s really going to offer the same level of finance jobs that I would have gotten say in New York or London,” Kwok, a Yale and INSEAD graduate, said.

    With the recent cutbacks by U.S. and European banks, Kwok says it’s nice not to have to constantly worry about losing your job.

    “You don’t have to contend with the doom and gloom I suppose that people in New York and Europe face, because I don’t think there’s the same amount of pessimism here,” Kwok said.

    The French investment banker looking for a job in Singapore adds that she is not going to go anywhere else.

    “Singapore overall is a very friendly Asian place compared to all the other ones. It’s not only number one, there’s no number two,” she said.

    – By CNBC’s Rajeshni Naidu-Ghelani

    © 2012 CNBC.com

  25. @Tn,

    I closed all my accounts because JDBs are going after everything. it is that unpleasant. Instead of paying the expenses of running my business by card, I am now forced to keep receipts. it’s a drag. i’ll find a better way but right now, incorporating or becoming an LLC is more than i want to spend. So, for now, financial institutions are still making my life more difficult. It’s a temporary pain I’ll get through.

  26. Five of the Biggest Banks in the United States are Putting Finishing Touches on Plans For Going Out of Business

    By David Henry and Dave Clarke
    NEW YORK/WASHINGTON | Wed Jun 27, 2012 4:29am EDT

    (Reuters) – Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations.

    The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages.

    Since the law allows regulators to go so far as to order a bank to divest subsidiaries if it cannot plan an orderly resolution in bankruptcy, the deadline is pushing even healthy institutions to start a multi-year process to untangle their complex global operations, according to industry consultants.

    “The resolution process is now going to be part of the cost-benefit analysis on where banks will do business,” said Dan Ryan, leader of the financial services regulatory practice at PricewaterhouseCoopers in New York. “The complexity of the organizations will shrink.”

    JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N), Goldman Sachs & Co (GS.N) and Morgan Stanley (MS.N) are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp, according to people familiar with the matter.

    The five firms, which declined to discuss their plans for this story, have some of the biggest balance sheets, trading desks and derivatives portfolios of financial institutions in the United States.

    Great Britain and other major countries are imposing similar requirements for “resolution” plans on their big banks, too.

    The liquidation plans are coming amid renewed questions about the safety of big banks following JPMorgan’s stunning announcement last month that a trading debacle has cost it more than $2 billion – a sum far too small to endanger the bank, but shocking enough to bring back memories of the financial crisis.


    If the extensive planning and review process works as proponents hope, big banks will become less hazardous to the public and regulators will be more confident that they can let wounded institutions die without wrecking the economy.

    In congressional hearings earlier this month, JPMorgan CEO Jamie Dimon said that the bank’s contingency plan for going out of business would let it fail without cost to taxpayers. Living wills reduce the systemic risk of a big bank failing, Dimon said.

    The living will requirement could actually yield similar results to restoring Glass-Steagall without actual re-enactment of the Depression-era laws separating commercial banking from investment banking, former FDIC Chairman Sheila Bair told Reuters TV earlier this month.

    Bair said regulators may determine that for a liquidation plan to work, a bank must separate traditional banking and insured deposits into subsidiaries set apart from volatile securities trading and securities underwriting.

    The rules push banks to untangle their complex structures, which can include thousands of legal entities, and which, in Bair’s opinion, have effectively blocked proposals for breaking up the corporations.

    Whether the Fed and the FDIC would actually force any banks to sell businesses or cordon off insured deposits remains to be seen, cautioned Richard Herring, a banking professor at the University of Pennsylvania.

    “We don’t know if they will have the guts to do it, but the tools are there,” said Herring, a leading proponent of living wills for more than a decade, who was appointed to an FDIC advisory panel on the plans.

    Herring worries, too, that the plans will be so long and complex that they will overwhelm the staff at the agencies.

    Still, that the plans are being written at all is progress, Herring said.


    Under the Dodd-Frank Act, banks and regulators must imagine liquidations in two different ways. The first is through bankruptcy courts with banks negotiating with their creditors. This is the going-out-of-business method planned in the living wills due July 1. The living wills must include how subsidiaries in foreign jurisdictions will be liquidated.

    The second way is through a new kind of liquidation process in which the FDIC takes control of putting a financial giant down. This method has more flexibility than is allowed in bankruptcy courts, but still uses critical information collected in the banks’ living wills, such as where exactly to find collateral.

    The new rules stagger deadlines for the banks to file plans, depending on their size and complexity. Nine banks will file first, including five based in the United States and four owned abroad. Regulators have declined to name the nine banks included in the first round.

    Other large banks will have until July and December of next year to hand in their plans, according to the FDIC. Eventually about 124 banks are expected to submit plans, according to the FDIC. There are about 7,300 banks in the United States.

    Regulators and the big banks have been meeting since January on what the plans are expected to include. Fed and FDIC officials have said they expect the back-and-forth to continue once the plans have been submitted.

    The rules give the banks a series of chances to refine their plans.

    But if banks cannot come up with feasible liquidation plans, regulators could order the banks to get rid of businesses.

    Government intervention is a last resort, said John Simonson, the FDIC’s deputy director of Systemic Resolution Planning and Implementation in the Office of Complex Financial Institutions.

    “I think a lot of progress can be made in having these firms make themselves more resolvable before you get to that point of actually imposing those severe remedies,” Simonson said.

    The regulators will want to see evidence that the banks can safely resolve their debts and transfer vital customer services and assets to healthy institutions.

    The plans could easily be 2,000 or 4,000 pages long, depending on the complexity of the banks, said Ryan of PricewaterhouseCoopers. The plans include “very granular detail” about bank operations, he noted, adding that “in many cases, this is a large documentation exercise.”

    For example, the banks must spell out plans for hiring lawyers and contacting regulators in key countries.

    The rules for crafting the living wills are 74 pages long, including an explanatory supplement. The plans could even include drafts of press releases showing how the banks would announce that they are going out of business, Herring said.

    The plans are to include summaries for the public, but most of the data will be kept confidential at the request of the banks concerned about revealing trade secrets, according to the rules.

    The FDIC has not said when the summaries would be released.

    The regulators estimated it will take all of the 124 banks combined about 1.3 million hours of work to write their initial plans, and each year afterwards, 267,544 hours to keep them up to date. A 40-hour work week for a single employee equals 2,080 hours a year.

    (Reporting by David Henry in New York, Dave Clarke and Karey Wutkowski in Washington and Rick Rothacker in Charlotte, North Carolina; Editing by Alwyn Scott and Jan Paschal)

  27. not to defend Wells, but this has little to do with a blog dedicated to saving one’s home. and furthermore, it seems like common sense really. if you’re suing Wells or otherwise going to “battle” with them, probably a good idea not to park your checking or savings account in one of their branches. diversifying is always a good idea in personal finance. would it really surprise you to find out that BoA can just take money from your account to pay a delinquent car or house loan? keep the people you owe separate from the people who “owe” you

  28. @Linda,

    There is a bit of insanity in giving one’s loyalty to an abstraction such as a bank. Loyalty is something we reserve for other human beings. You have to wonder: were you “loyal” to the bank or did you simply have the kind of relationship that benefited both of you?

    When there is no longer any benefit in a bilateral relationship, that relationship has no reason to be maintained. In that instance, banks decided that there was no longer any benefit in keeping us as their clients. They were willing to do anything to get rid of us. For some insane reason, people hung onto that chimere of a “loyal relationship” which translated only into anonymous phone calls from ignorant and unpleasant employees and unsigned banks statements and default notices. What would compel any right-minded person to miscontrue that as a “loyal” relationship.

    People won’t distance themselves from those entities. They don’t close their accounts, they don’t discard the bank system in its entirety and they cry when the banks treat them like hell. We’re dealing with machines and systems here. We’re not dealing with human beings. Cut the ties and go back to what really matters: people. If everybody does that, banks won’t survive. And no one will do it as long as he (mistakenly) believes that he has something to lose by cutting the ties.

    There is no benefit to the 99% in keeping a relationship with any bank. End of story.

  29. If the sham OCC review “cherry picks” a few solid cases to comensate with the 125K+ equity, then chicken-feeds the rest with $500, guess what! O’Wallstreetbama will crow like a rooster and declare that Millions of wronged homeowners (former, that is) have been made whole.
    we have nothing left but Street Justice.

  30. i was a loyal customer with Wells Fargo for 30 years and they could care less. Never missed a payment in 15 years. Their attorneys steamrolled us out of our home. They said there was nothing they could do about it and blamed it on Wachovia. Attorneys’ paperwork was riddled with defects. They and the judge did not honor the laws. Both my attorneys sold out to them; one of them the brother of the city attorney of Los Angeles. Real scumbag.

    It’s not so easy defending one’s self in court. By the time you get up to speed, more time goes by and more money spent, and you are at a disadvantage. We spent a lot of money on clowns who could not deliver and lied to us. We know people who went through Jurisdictionary and all, and presented a great case, only to be shot down. Most judges are prejudicial against pro se, especially in California, for some reason.

    Wells is a heartless, soul-less organization, only concerned with profits and image.
    Their employees are as nice as can be, however.

  31. Wells retaliated against me and I am the lowest guy on the totem pole. You would think that the same organization (and I use that word loosely) which could not coordinate the mortgage modification process, despite months of effort and enough documents to take out a rainforest, could not be so effective in retaliation. It just shows either one of two things, all of this lost documentation and we can’t do modifications was sheer bullshit, or they are really only good at being assholes!

  32. burn these motherfuckers to the ground……whats is it going to take people !
    i am in my own fight with these scumbags and they are on notice

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