Feds accuse Wells Fargo of loan scam

  • Article by: BRADY DENNIS , Washington Post
  • Updated: October 10, 2012 - 12:32 AM

Suit says mortgages didn't qualify for FHA insurance.

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mrdaveOct. 9, 12 3:43 PM

This should be interesting.

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notforwardOct. 9, 12 3:49 PM

Make it end! This entire Obama experiment has been a disaster.

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rshacklefordOct. 9, 12 4:11 PM

(article quote) U.S. Attorney Preet Bharara says the bank's plan to reward employees for the number of loans they approved "was an accelerant to a fire already burning." ---- Instead of trying to wrest millions from a bank (which will only make the lawyers wealthy), skip the monetary recovery and put some more Jeffrey Skillings in the Fed Pen. It should not be hard to find the memos and/or witnesses for this "loan approval reward plan."

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rshacklefordOct. 9, 12 4:15 PM

"notforward: Make it end! This entire Obama experiment has been a disaster." ---- Wrong target there. Obama was not the person who lessened the regulatory oversight of our financial system. Think further back in presidential history.

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falcon1681Oct. 9, 12 4:17 PM

Except that this took place during the Bush administration.....

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livefreeordOct. 9, 12 4:32 PM

The solution is simply to get the government out of the loan guaranteeing business. If you want a loan for school, go to the bank and get one. If they won't give it to you, get someone to co-sign. If the higher-ed systems believe in their product, they can make the loans. Most have extensive foundations that could fund this. Why does the government, i.e. me and other taxpayers, have to co-sign/guarantee these loans? Same for mortgages (Fannie and Freddie) and the worst of all Solyndra type abominations for corporate interests.

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ggl3216Oct. 9, 12 4:35 PM

Why are people so eager to blame President Obama?rshackleford is correct. Think a little people! The banking mess is NOT his fault!

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aviendhaOct. 9, 12 4:47 PM

No president made Wells Fargo create thousands of loans for buyers who couldn't make their payments in order to cash in on the federal insurance. That's why they're being sued for fraud.

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albundy74Oct. 9, 12 5:17 PM

Wells Fargo approved me for a 275,000 mortgage about 10 years ago, at the time I was making in the mid 40's. I asked them how one was supposed to eat with a mortgage that large? Keep in mind, they knew I had student loans, a car payment, etc. The response? "We're just saying what you're approved for." I declined. Another reason as to why they're being sued now.

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albundy74Oct. 9, 12 5:20 PM

rshakleford is correct- When the people at the top start wearing orange jumpsuits with numbers on the back as a result of their choices, there won't be a need for regulation.

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