So taxpayers bail them out so that they can continue illicit schemes to defraud those same taxpayers. Then the banks negotiate fines when caught and continue their highly profitable racket. Is it any wonder that finance has the biggest buildings, the highest paid executives and the most expensive lawyers and lobbyists on their payroll? See: Wells Fargo in settlement talks in US mortgage insurance case.
“Wells Fargo & Co said on Wednesday it is in discussions with the U.S. government to resolve a lawsuit accusing the nation’s largest mortgage lender of cheating taxpayers by submitting ineligible home loans to a federal insurance program.
Wells Fargo, the fourth-largest U.S. bank by assets, disclosed the talks in a quarterly filing with the U.S. Securities and Exchange Commission.
In October 2012, the U.S. Department of Justice sued the San Francisco-based bank, saying it failed to report more than 6,000 loans that did not meet requirements for insurance under the Federal Housing Administration (FHA), and failed to properly review early payment defaults.
The government said this caused the FHA to pay out hundreds of millions of dollars in claims on loans that did not qualify for insurance.”
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