WELLS FARGO JUST ADMITTED TO ROBBING US CITIZENS BY DECEIVING THE GOVT AND NO ONE WAS CHARGED
BY MATT AGORIST
BlacklistedNews.com
April 11, 2016
Top megabank, Wells Fargo & Co just admitted to defrauding the United States government for nearly an entire decade, which subsequently led to the housing market collapse, and no one is going to be punished.
On Friday, the largest US mortgage lender and third-largest US bank admitted to deceiving the U.S. government into insuring thousands of risky mortgages.
According to the settlement, Wells Fargo “admits, acknowledges, and accepts responsibility” for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance, reports Reuters.
Wells Fargo also admitted to having from 2002 to 2010 failed to file timely reports on several thousand loans that had material defects or were badly underwritten, a process that Kurt Lofrano, a former Wells Fargo vice president, was responsible for supervising.
The intentional deception by this corrupt bank led to an insurmountable debt liability for American taxpayers as the FHA was forced to pay out insurance claims on all the defective loans.
As Reuters reports, Friday’s settlement is a reproach for “years of reckless underwriting” at Wells Fargo, U.S. Attorney Preet Bharara in Manhattan said in a statement.
“While Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust,” Bharara added.
However, Bharara’s words ring hollow when looking at the bank’s punishment. For robbing the public through defrauding the US government, not one single Wells Fargo employee will face criminal charges. The bank was merely ordered to pay a $1.2 billion fine. This is barely a slap on the wrist considering the turmoil that ensued from such criminal practices.
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