Wells Fargo says it may face fair lending claims
Source: Reuters
(Reuters) - The Department of Justice believes it has grounds to bring claims against Wells Fargo & Co (WFC.N) for monetary damages and civil penalties under fair lending laws, the bank said in a securities filing on Tuesday.
The fourth-largest U.S. bank said it believes such claims should not be brought and it is seeking to show the department that it is in compliance with fair lending laws, the filing said. The investigation involves possible violations related to mortgage origination practices, the filing said.
San Francisco-based Wells Fargo is the largest servicer and originator of home loans in the United States.
Government agencies also continue to investigate whether Wells Fargo properly disclosed risks related to mortgage-backed securities in offering documents for investors, according to the filing. In February, Wells said it had received notice that it may face an enforcement action from the Securities and Exchange Commission.
Read more: http://www.reuters.com/article/2012/05/08/us-wellsfargo-justice-idUSBRE8470OM20120508
goclark
(30,404 posts)What about Bank of America?
crazylikafox
(2,763 posts)past time for some banksters to go to jail. Civil penalties will just be added to their cost of business & passed on to the customer.
Amerigo Vespucci
(30,885 posts)The only real damage here is to Wells Fargo's public image, but when you factor in the millions they spend on marketing, this too shall pass.
bayareaboy
(793 posts)No shit Sherlock!
My guess is Wells Fargo is playing counter to the justice dept to let folks know that mean Obama and Holder want a hunk out of their ass. I am sure that BofA will be right behind.
It's too bad that Wells didn't move to North Catonic a few years ago like BofA did. I hate to see bad things said about San Francisco.
slackmaster
(60,567 posts)The Magistrate
(95,264 posts)In a well-run polity, most of this company's executives would be doing twenty-to-life, and fines equal to its last ten years' stated profits paid in to the national Treasury.
qb
(5,924 posts)They're jacking checking account fees and credit card interest rates WAY up - even for a customer of 20 years! My partner finally dumped them for a credit union.
midnight
(26,624 posts)I would say that is unfair, but what well be done about it? They create jobs, and the job creators are to important to prosecute for fraud.
Response to Amerigo Vespucci (Original post)
Kelvin Mace This message was self-deleted by its author.