Thursday, 21 July 2011

Warren Buffett's Wells Fargo Busted For Lying To People,


Wristslapped With $85 Million Fine By The Emperor Of Moral


Hazard Himself

Tyler Durden's picture
Submitted by Tyler Durden on 07/20/2011

Just out from Bloomberg.

Federal Reserve Board issued consent cease, desist order, assessed $85m civil money penalty against Wells Fargo, Fed said in email statement.

Order addresses allegations that Wells Fargo employees steered potential prime borrowers into more costly subprime loans, falsified income info in mortgage applications

Order also requires Wells Fargo compensate affected borrowers

$85m civil money penalty is largest Board has assessed in consumer-protection enforcement action

Penalty is 1st formal enforcement action taken by a federal bank regulatory agency to address alleged steering of borrowers into high-cost, subprime loans

Wells Fargo also required to improve oversight of its anti-fraud, compliance programs, incentive compensation, performance mgmt policies

Wells Fargo didn’t admit any wrongdoing

Shocker: the bank of Warren Buffett, that paragon of virtue and decency, busted by the capo di tutti ZIRP capi itself for lying to grandma? Surely WFC investors, who don't have to deal with their investment either admitting or denying wrongdoing, can "suck it in" and we can get Charlie Munger to preach some more fire and brimstone morality about the evils of gold and the miracles of taxpayer bailouts.

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by wang
on Wed, 07/20/2011 - 15:13
#1474690

what about the 300b of mex money laundering

On 10 April 2006, a DC-9 jet landed in the port city of Ciudad del Carmen, on the Gulf of Mexico, as the sun was setting. Mexican soldiers, waiting to intercept it, found 128 cases packed with 5.7 tons of cocaine, valued at $100m. But something else – more important and far-reaching – was discovered in the paper trail behind the purchase of the plane by the Sinaloa narco-trafficking cartel.

During a 22-month investigation by agents from the US Drug Enforcement Administration, the Internal Revenue Service and others, it emerged that the cocaine smugglers had bought the plane with money they had laundered through one of the biggest banks in the United States: Wachovia, now part of the giant Wells Fargo...

In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year's "deferred prosecution" has expired, the bank is in effect in the clear. It paid federal authorities $110m in forfeiture, for allowing transactions later proved to be connected to drug smuggling, and incurred a $50m fine for failing to monitor cash used to ship 22 tons of cocaine.More shocking, and more important, the bank was sanctioned for failing to apply the proper anti-laundering strictures to the transfer of $378.4bn – a sum equivalent to one-third of Mexico's gross national product – into dollar accounts from so-called casas de cambio (CDCs) in Mexico,

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs

by Careless Whisper
on Wed, 07/20/2011 - 15:22
#1474765

Are you saying that WellsFargo/Wachovia laundered $380 Billion in drug money? Oh wait, they took a plea of one year probation and a $100 mill fine. I get it.

Posted by Britannia Radio at 18:55