Thursday, March 02, 2017

"Wells Fargo Withholds Top-Level Bonuses" by Emily Glazer and Austen Hufford

In today's (3/2/17) Wall Street Journal, Emily Glazer and Austen Hufford describe how the board of directors of Wells Fargo has stripped 8 top execs of bonuses tied to the fake account creation scam. That is certainly a step in the right direction. What the Wells Fargo board and investigative reporters need to look into, though, are the scams that Wells Fargo ran on borrowers who had defaulted on their mortgages during the subprime mortgage fiasco. This included hiding behind  "holder in due course" doctrine though WF (or at least some persons employed by WF) knew the bank was buying tainted paper and colluding with the lawyers of mortgage defaulters to induce their clients to settle deficiency suits when it best suited WF execs. (When anything is collected on debts previously written off as bad the funds go right to the bottom line.) Finding sufficient evidence would take some digging, and will probably require a whistle blower, but the story would be worth a Pulitzer or at least a Peabody.

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