The Real Story Behind Wells Fargo Scandals

The CEO of WFB has agreed to a ban from the banking industry for life. Think about that. Whatever your job how bad would have to be in order to lose the right to ever doing it again? Pretty bad.

So the question of the day is this: After tallying all of the Wells Fargo scandals why would anyone, much less a judge, accept the facial validity of documents knowing that the source of those documents had engaged in a long-term pattern of conduct that involved falsifying documents? Why would any judge not insist on actual proof instead of allowing Wells Fargo to make use of presumptions based upon the apparent credibility of documents?

The real story is that this wasn’t just Wells Fargo. All the investment banks and mega commercial banks were in on the plan and raking in huge profits or increases in the value of their shares in market trading or both. Just Make stuff up, label it as though it was something real and then sell it, sell it again and then sell something that is indexed on the fake stuff and then buy contract insurance on the performance of crazy crap that you know will implode.

Nice work if you can get it and you can sleep at night after destroying the lives and livelihood of broad swaths of the population the individual members of which are seen as food.

5 Responses

  1. Good questions. So Judge, you follow this – can you answer these questions honestly? Are you compromised? Is (or was) your own mortgage with Wells Fargo? Are you invested in “preferred” (betting against the American Homeowners) MBS?

  2. Geez – great knowledge Ian. Thank you.

    People – put one and one together. All about profit. Who was major servicer to GSEs before crisis? Major banks. And, why did loans leave GSEs? No profit at GSEs. They knew it. Fixed rate –no profit in that. Agreements. Who controlled what happened to the loans? The servicers in agreements with GSEs. Number one — get the loan out of GSEs –and into crisis loan – by whatever means or method.

    And what did GSEs then do? Invest in it. Beneficial to all — but the borrowers — and the investors.

    And what did borrowers see? NOTHING. They got a rubber-stamped refi- that was not a refi. Just a transfer of debt collection — — OHHH – but with a higher rate.

    This is what happened. So simple to now see. Sorry — Been there. Seen it. Know it. And, why was it not fixed?

    Those in control told the government — no money – we can’t fix it. Recall that as if yesterday.

  3. Why should anyone, as a consumer be forced to do any kind of financial business with a company (WF) after that particular company opened a fraudulent checking account in their name, using their SS number and private info back in 2009.
    Now 10 years later, that same consumer is forced to do business with WF because loan servicing on their home mortgage has now been transferred to WF. No choice as a consumer. Outrageous.

  4. JohnR- don’t forget the head of Florida’s financial licensing department, who was fired/resigned when it was discovered that over 10,000 people working in the financial services industry in Florida had felony records.
    Maybe the guy left to spend more time with his family.

  5. I entirely agree! How many petitions have I signed… sent to how many different members of our Govt.? Many! I’ve signed em being sent to the FBI, the SEC, the OCC… the President and more. The thing that plagues my thoughts the most though is… OK, our Govt. is colluding with the Lender’s, just catch 60 Minutes on Robo Signing and watch OBama’s actions dealing with the Lenders… our Court’s Judges are colluding with the Lenders (Rocket Docket anyone?)… but why hasn’t the Legal Industry stood up… en masse… and demanded the truth and the law be upheld? I mean, OK, a large part of our entire legal industry is engaged in actually carrying out & perpetuating this crime of gigantic proportions (who identifies the need for forged doc’s, orders them up and them submits them to the Courts KNOWING they’re fake(?)… but aren’t there enough others(?), isn’t this an industry overpopulated like many others these days(?) how about the law Schools and the Universities that pride themselves on their teachings…. Have we seen even 1 group of attorneys or other members of the legal community ban together and petition anybody? You know, like the 11,000 Certified Property Appraiser’s who sent the FBI that petition back in what… around 2004? Or how about the over 3,000 Engineers who petitioned over the collapse of the World Trad Center? Where are all of our highly professionally trained members and their teachers from the Legal Industry and why, oh why, did they desert us in the first place? Not enough free booze and drugs?

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