A fine of $ 2,1 billion: Wells Fargo admitted that he had provoked the 2008 crisis of the year with his actions
One of the largest US banks, Wells Fargo, has agreed to pay a fine of $ 2,1 billion for mortgage fraud before the 2008 financial crisis of the year.
Wells Fargo is one of the last remaining large banks that settled the fine due to its role in the mortgage lending crisis. He has to pay $ 2 billion dollars in fines for actions that provoked the 2008 financial crisis of the year.
The government blamed Wells Fargo and many other large banks for underestimating mortgage loans at the height of the housing bubble from 2005 to 2007. Investors bought tens of billions of dollars in mortgage loans from Wells Fargo and other banks, and experienced significant losses when borrowers could not pay off the mortgage, and housing prices collapsed all over the country.
The Justice Department said that Wells Fargo, in violation of its own rules, sold at least 73 500 mortgage loans, knowing that the people who took out the mortgage were insufficiently paying, as a result investors lost billions of dollars.
“In this settlement, Wells Fargo is responsible for the actions that contributed to the financial crisis,” said Acting Attorney General Jesse Panuccio in a statement.
Representatives of Wells Fargo said that “the bank is happy to reserve these old problems,” and the money to pay for the fine at the bank was prepared in advance.
For the same actions, Bank of America paid a fine of $2014 billion in 5, and Citigroup — $4 billion.
The penalty is not related to later scandalswho have been chasing Wells Fargo for the past three years. So, earlier in Wells Fargo found more than 1,4 million fake accounts. As it turned out, bank employees opened fake accounts in order to artificially increase retail banking figures. In the financial institution began service checks. The bank found a total of up to 3,5 millions of potentially fake bank and credit card accounts. In addition, thousands of customers without their permission were registered in the online payment of bills. The bank has identified 528 000 potentially unauthorized online billing requests.
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