How many Wells Fargo employees were fired for NOT committing fraud?


When Wells Fargo fired 5,300 employees for opening 2,000,000 accounts in its customers name (stealing their cash and trashing their credit scores in the process), it wanted us all to know that it had cleaned house, because this was just 5,300 people who, without any help from senior management, all happened to coincidentally engage in the same fraud. Read the rest

Whistleblowing Wells Fargo loan officer describes years of fraudulent, criminal culture in the bank


Beth Jacobson was a Wells Fargo loan officer who blew the whistle on the bank's predatory, racist loan-fraud in the runup to the 2008 financial crisis, which tanked the world's economy and nearly wiped out Wells Fargo (they were rescued with a $36B taxpayer-funded bailout). Read the rest

Advice for people defrauded by Wells Fargo


If one of the 2,000,000 fraudulent accounts Wells Fargo opened was in your name, the US government has some advice for you. Read the rest

Support the Consumer Financial Protection Bureau's action against predatory payday lenders


The predatory payday lending industry -- "'legalized loan sharks collect 75 percent of their fees from people stuck in more than 10 loans a year by charging 300 percent APR" -- is lobbying hard to kill the proposed Consumer Financial Protection Bureau's proposed "debt trap" rule, "that would require lenders to determine whether borrowers can afford to pay back their loans and cut off repeated debit attempts that rack up fees and make it harder for consumers to get out of debt." Read the rest

Wells Fargo won't claw back $125m retirement bonus from exec who oversaw 2m frauds

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Carrie Tolstedt is the Wells Fargo executive who presided over a titanic, multi-year fraud through which at least 5,300 of the employees who reported to her opened up fake accounts in Wells' customers' names, racking up fees and fines, trashing the customers' credit ratings, and, incidentally, pulling in record revenues for Tolstedt's department, which Wells' management recognized by giving her a $125M parting gift when she left the company at the end of July, just weeks before the scandal broke. Read the rest

Wells Fargo fires 5,300 employees for opening 2M fake accounts in customers' names


5,300 Wells Fargo employees created 2 million phony bank accounts and racked up huge fees, raking in commissions from their employer for being such great salespeople for the bank's services; meanwhile, the fees associated with the 2 million fake accounts created the appearance of much greater earnings for the bank, which it trumpeted to its investors. Read the rest

Peter Thiel & Y Combinator fund a "litigation financing" startup to make money off other peoples' lawsuits

Legalist is a startup founded by Thiel Fellow Eva Shang and Christian Haigh, backed by Y Combinator: it will use data-mining to identify people who have been legally wronged by deep-pocketed aggressors and offer to finance their litigation in return for a share of the winnings. Read the rest

Hedge fund paid terminally ill people to sign up for "death puts"


A "death put" on a certificate of deposit means that the bond matures immediately upon the bearer's death, rather than when its term runs out: they're used as a form of life-insurance, cushioning the blow to loved ones from unexpected death, and they can be held jointly, so that the bearer's heirs and a third party get a payoff on death. Read the rest

US Army committed $6.5 trillion in accounting fraud in one year


In June, the Defense Department’s Inspector General released a report on the US Army's accounting, revealing that the Army had invented $6.5 trillion in "improper adjustments" ($2.8T in one quarter!) to make its books appear balanced though it could not account for where the funds had gone. Read the rest

Europe's banks want to store billions in cash to fight back against negative interest


The economic orthodoxy of austerity means that governments facing recession can't just spend their way out of it by creating New Deal-like stimulus that gets the economy moving again: instead, they handed trillions to banks and then watched in dismay as the banks failed to lend any of that out to small businesses and entrepreneurs. Read the rest

Anti-corruption candidate challenges opponent's billionaire backer to a debate


Zephyr Teachout (previously) is the anti-corruption candidate in New York's Hudson Valley who raised more than $500K from small-money, Bernie-Sanders-style donors (I was one of them); then vulture fund billionaire Paul Singer gave $500K to the PAC for John Faso, her Republican opponent, catapulting him into contendership. Read the rest

Parents who can't pay the bill for kids' incarceration can still go bankrupt, a US court rules

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When Maria Rivera got a bill from Orange County for her young son's year in juvenile detention, she sold her house to pay for it, but ended up short, and the county got a court order for another $10K to pay the remainder and various fees and penalties. Read the rest

John Oliver on subprime auto-lending and its killswitches

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We've been following the trade in remote kill-switches for cars sold to subprime borrowers since 2009, and watched in dismay as they got worse and worse: though John Oliver's report on the billions inflating the subprime auto-lending bubble touches on these, he focuses on the economic factors -- sleaze, corruption, moral hazard -- driving the tech. Read the rest

How and why to short Uber


Uber's $62.5B valuation is an utterly speculative bet on a company that can only pay out if many sub-bets pay off: the timely arrival of self-driving cars, widespread adoption of car-sharing (rather than private self-driving car ownership), no effective competition from other hailing companies (including those backed by the car manufactuers), regulatory reform to legalize its practices, and smooth sailing for its massive subprime lending program for its drivers. Read the rest

Ireland (finally) jails three bankers for role in 2008 crisis


The three senior bankers who were sentenced on Friday are among the first to go to jail for illegal actions that contributed to the global economic crisis of 2008, which triggered waves of global instability, which contributed to the ongoing refugee crises and wars, mass unemployment, crippling austerity, the near-collapse of the Eurozone, Brexit, and soaring inequality. Read the rest

Silicon Valley banks offer tech giants' new hires 100% mortgages on 24 hours' notice

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What to do if you've just signed up to work in one of the most expensive real-estate markets in the world, with almost all of your net worth tied up in illiquid shares in your employer's company? Just ask a Silicon Valley bank for a 100% mortgage, which they'll cheerfully supply on 24 hours' notice, with all the "white-glove service" trappings you could ask for. Read the rest

Study: top bank execs saw the crash coming and sold off shares in their own institutions


In a new working paper from the Center for Economic Policy Research, scholars look at the trading records of shareholders, directors and top executives of major financial institutions in the runup to the crash of 2007, and find that the sell-offs by the top five executives at a bank strongly correlated with that bank's losses in the crash, but that other stakeholders' trading do not correlate: in other words, the very top brass of banks knew that they were sitting on piles of worthless paper and sold before anyone else knew about it, and kept their shareholders, direct reports, and the board of directors in the dark. Read the rest

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