Posts Tagged ‘ Wells Fargo ’

Occupy Movement Alive & Well beside Ben & The Boss in Philly

April 19th, 2012. By AbiK

It’s hard to put into words the feeling you get as you walk through Independence Mall in the heart of Philadelphia and reflect upon the fact that you’re not only walking past Ben Franklin’s grave, but also across the very ground that George Washington, Thomas Jefferson, John Adams, Alexander Hamilton and so many others once trod. All in the name of independence. It’s beyond breathtaking—no matter how many times you make the trek.

Right now, however, that hallowed ground holds even more meaning—particularly as 2012 marks the 225th anniversary of the US Constitution and celebratory exhibits fill the National Constitution Center, which sits just opposite Independence Hall where both the Declaration of Independence and the US Constitution were originally signed. Special exhibits in the Center currently include one with personal artifacts from The Boss, himself: “From Asbury Park to the Promised Land – The Life and Music of Bruce Springsteen”. Independence Mall, however, is also where Occupy Philly is stationed. Still. And the significance is surely not lost on anyone.

Most people probably think Occupy Philly, along with all the other Occupiers, simply rolled up their sleeping bags and headed for working toilets at home. Sure, there’d be the die-hards whipping out their MSR Reactor Stove Systems for yet another ramen noodle-based dinner, but the rest of them? Gone, right?

Well, yes—but no.

Turns out the Occupiers don’t like freezing their tails off. Valley Forge this is not, after all. And so after moving to remote locales and continuing to stoke the fires of discontent, they’re back.

As with the pre-winter Occupy movement, it’s hard to find the bullseye issue—sure, it’s about corporate greed, corporate involvement in politics, the mortgage crisis and foreclosures, predatory lending, racial inequality, the economy, unemployment, disproportionate tax burdens—collectively summed up by the symbolic moniker of the masses: the 99%.

But any one of those issues could stand on its own as a cause celebre. And that’s been the challenge for the Occupy movement from the get-go—which issue is so central, so quintessential, that it could serve as the key rallying cry? It’s more or less the philosophical version of “jack of all trades, master of none”. And yet, in its ambiguity, there is indeed clarity—that something is very wrong in this country right now.

On the day that I visited Independence Mall (and Hall), there were only a few Occupiers out on the lawn—that’s them in the picture above (see more pics on our Facebook page). Their main focus: Wells-Fargo, the bank that’s surely seen its name in print a few times on LawyersandSettlements.com. Their primary beef: Wells-Fargo outpaces any other Philadelphia bank when it comes to foreclosures—this, after getting bailed out by the government to the tune of $25 billion.

The group, PHARE (Philadelphians Allied for a Responsible Economy) —from #OccupyPhilly—has flyers circulating that invite you to “Join us in taking Wells Fargo to Trial”: June 13, 2012 at 9:00 a.m., Municipal Court, 1301 Filbert Street” in Philly. If you’re in town, you might want to stop by.

So Occupy Philly is indeed back—along with the peonies and clematis. And much like those perennials, the movement appears ready to keep coming back. But after all, when freedom is calling, don’t we all come back to it?

Tags: #Occupy, #OccupyPhilly, Corporate Greed, Foreclosure, Founding Fathers, Independence Hall, Independence Mall, Occupy Movement, Occupy Philly, PHARE, Philadelphia, Predatory Lending, US Constitution, Wells Fargo
Posted in Consumer Fraud, Court of Public Opinion, Emerging Issues, Personal Injury | No Comments »

Wells Fargo Mortgage Fine: Largest Ever & No Wrongdoing

July 29th, 2011. By Hunter West

Well, it’s a big one.

Wells Fargo—the fourth largest bank in the country in terms of assets—was assessed the largest fine ever issued by the US Federal Reserve (The Fed) for allegedly pushing borrowers into more expensive mortgages, and in so doing helping to foster the sub-prime mortgage mess.

These were borrowers with good credit and cash flow, and could have easily qualified for conventional mortgages at prime, according to a report yesterday in CNN Money.

Instead, they were allegedly nudged into mortgage products that would have proved more expensive in the end. Wells Fargo Financial, a subsidiary that closed last year, was also accused of pushing through loan applications that would otherwise not have qualified due to income restrictions. It is alleged that the income information was ‘doctored.’

We say ‘alleged,’ because even though Wells Fargo agreed to pay the largest fine ever handed out by The Fed—$85 million—the banking juggernaut was not required to admit to any wrongdoing.

In fact, Wells Fargo explained in a statement that the alleged wrongdoing occurred at the hands of a few ne’er do well former employees, and that such conduct is not within the mandate or policy of Wells Fargo.

That’s like parents claiming they are not responsible for the actions of their children.

Come on…

And what does that say about ethics in the banking industry?

I was doing a story on personal finance some years ago and a banking executive was very frank in her assessment of the lengths some banks will go to get loans on the books—in other words, generate business for the bank.

To paraphrase:

“If you come in looking to borrow, say, $15,000 to buy a new truck and the loans officer realizes that you have the cash flow that would accommodate $25,000—you’re going to be pushed to borrow that $25,000. It will be a polite push. But it will be a firm push, and a push just the same. All you want is fifteen grand.

“But the bank seems to know what’s better for you, than you do.”

That interview took place around 1991 or so—20 years ago.

So look what that policy got us into (and I’m not picking on Wells Fargo here, this applies to everyone…)

It was the banks that helped fuel the sub-prime mortgage meltdown by pushing people into more expensive mortgages beyond their comfort zones (or their financial contingencies). It was the banks or their agents that allegedly doctored income statements. The stories of individuals who qualified for a mortgage without the capacity to confirm their income at all are legend, and the stuff of modern financial folklore.

The bank is supposed to say, ‘whoa…wait a minute…you may not be in a position to afford that truck, or that big house. C’mon now, take a good hard look at your finances. You have to dial your expectations back a notch.’

But no. The opposite proved true. Or, at least in one case, the opposite is alleged to have proven true. Wells Fargo will pay $85 million in fines, plus compensate up to 10,000 borrowers to the tune of between $1,000 and $20,000 apiece.

They can afford it. Earlier this week Wells Fargo reported $3.9 billion in net income for Q2 from revenues totaling in excess of $20 billion.

An $85 million fine? Millions more to compensate victims?

That’s nuthin’…

What’s something, is that they didn’t have to admit they (allegedly) screwed up…

Tags: Sub-prime Mortgage, Subprime Mortgage, US Federal Reserve, Wells Fargo
Posted in Consumer Fraud, Financial | 1 Comment »

AG Edwards Settlement has Plaintiffs Ticked Off

March 29th, 2010. By AbiK

And I have to say, I’d be ticked too.

Plaintiffs got a little gift in their mailboxes last week: they received notice of the proposed settlement from the AG Edwards class action. Guess how much some plaintiffs are receiving? The initial report of the proposed settlement put the average payout at $20-25 customer. One commenter at LawyersAndSettlements.com quotes his notice as saying he’ll receive $20.42. You can read the notice yourself at agedwardsclassactionsettlement.com. (Note the name change of the website—prior to the proposed settlement, the site was agedwardsclassaction.com; the URL has been updated to reflect that the case now has a propsed settlement.)

Keep in mind, if you’ve read the comments that came flowing in from our post on where the AG Edwards class action suit was heading, many of the Class Members claim they lost their “life savings” compliments of AG Edwards. And remember, this was back during a class period of 2000 – 2005—not post-2008 when we all saw our savings take a dive.

The AG Edwards class action had been brought against the brokerage firm in 2005 claiming that AG Edwards breached its fiduciary duties to the Plaintiffs (folks who owned AG Edwards accounts) and that AG Edwards was “unjustly enriched by receiving millions of dollars in improper payments from mutual fund companies whose funds were held by Plaintiffs“. The Class Period had covered five years—and getting to a proposed settlement then took five years.

That’s a long time to wait for some resolution and ideally, restitution.

Another aspect of the proposed settlement is what the lawyers’ take will be. Apparently it’s $21 million—plus $600,000 in expenses. That’s 35% of the total proposed settlement of $60 million—and Read the rest of this entry »

Tags: AG Edwards, AG Edwards Settlement, Class Action, Mutual Funds, Wells Fargo
Posted in Class Action, Emerging Issues, Financial, Securities, Settlement | 48 Comments »