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

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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Careless Whisper's picture

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.


cara leaf's picture

Hey, wait a minute...isn't this the same guy who owned 13% of Moody's while Moody's was graded Financial Weapons of Mass Destruction Triple AAA?

Problem Is's picture

Look girlie... are you sure you're old enough to be posting on here???

Lemme see some ID....

cara leaf's picture

Hey, wait a minute...isn't this the same guy who owned 13% of Moody's while Moody's was grading Financial Weapons of Mass Destruction Triple AAA?

Problem Is's picture

And either ease up on the <SAVE> button...

Or your internet connection is hanging up because the NSA is monitoring your usage...

Comes with the ZH posting territory...

NotApplicable's picture

Interesting how that article talks only about "Mexican drug gangs," but fails to mention the involvement of who they were doing business with, or how they owned a DC-9 painted to look like a Homeland Security plane.

Daniel Hopsicker has been all over this story for years.


Careless Whisper's picture

thanks for the link. that's an interesting web site.

Sheba Poe's picture

Guy also wrote "welcome to terrorland". Worthwhile as well

bigdumbnugly's picture

can't be.  he's such a grandfatherly, nice man.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Tell me it isn't so.  Next your gonna tell me that Wells Fargo laundered billions in drug money along with Wachovia.  Fine was about .001% for their misdeeds showing their is honor amongst thieves.


Tuco Benedicto Pacifico Juan Maria Ramirez

slaughterer's picture

Buffet = shark with an adolescent face and a folksie voice.  

Gubbmint Cheese's picture

Uncle Warren? What?


Gringo Viejo's picture

"Munger only pawn in game of life."

Boston's picture

This must be a mistake.  Chris Whalen just gave the "all clear" for WFC:


fuu's picture

Just talking his book.

ghostfaceinvestah's picture

Yup. He seems to be a WFC fan, for sure.

carbonmutant's picture

In other Bloomberg news.:

Bank of America Corp. (BAC) gained the most in four months of New York trading as analysts from Wells Fargo & Co., Citigroup Inc. (C) and Nomura Holdings Inc. wrote that the biggest U.S. lender probably won’t need to raise capital.

Missiondweller's picture

That's not even a slap on the wrist. Pathetic.

Archimedes's picture

Off topic but I just love the headline:

Gas Prices Rise Despite Obama-IEA Oil Release
Stuart's picture

SSDD.   When the avg person is forced to take pension cuts, that is when the Buffets and all captured regulators need to head offshore. 

jo6pac's picture

85 chup change and is a fine tax deductable?

Cdad's picture

And now we know why the Wells CEO resigned suddenly, grabbing up his options and heading out the door.

Again, the REAL issue behind the corruption of Wall Street and the TBTF banks is that REAL capital will not form until such time as these banks are simply broken up or, in the case of Blight on America Bank, closed down.

The failure of the SEC and the FDIC to finally do this work is beyond confounding, and continued failure will simply continue to lead America down the path of the Greater Depression.  Then again, I suspect that there are huge contingencies on Wall Street and in DC that want just that.

This has been the case for almost three years.  It will continue to be the case, as one company after another simply continues to hoard cash while simultaneously trimming the ranks of its employees to facilitate earnings beats.

It is all pretty simple.

Bay of Pigs's picture

+$1600 and $40

Hey KidD and Libertarians for Prosperity,

Instead of bashing Eric Sprott all day long, why don't you read this fellows postings and actually learn something? Until then, you guys get nothing but scorn and derision from me for being pro establishment shills.


FinalCollapse's picture

You may not see it from the outside, but internally WFC is broken into many legal entities. They did the break up by themselves, long time ago. 

slaughterer's picture

Warren and Charlie: they are secretly lovers.  That is why Berkshire has such low prostitution ring bills. 

I Am The Unknown Comic's picture

I stll just find it unconscionable that a cartel of private companies can levy a fine against a private company.  Yes I know the chairsatan is nominated by da Prez, and yes I know WFC is a member bank.  It just seems wrong to me.  Seems like the Attorney General (Holder) should be doing this, but now I'm starting to laugh uncontrollably at that thought. 

Maybe that's why AG Holder has to be so damned incompetent....so that the Federal Reserve can take over the role of law enforcement and justice. I'm gonna puke

I mean, imagine if Exxon, Shell, and Chevron fined BP $85,000 for the Gulf of Mexico oil spill and BP didn't have to admit any guilt.  This is sickening.

Problem Is's picture

Uncle Warren looks like a TeeVee-Vangalist...

You know... a Pat Robertson lookin' mofo...

Yikes... so huckster slimy...

ebworthen's picture

Comrade gravely voiced corn-fed bullshit bone-headed bovine cloven-hooved buffoon Buffet!

The Wells Fargo stage coach was held up, drivers and guard shot, and occupied by cattle rustling and old lady beating trained MBA's masquerading as the Good Sheriff and his Deputy a very long time ago.

Start building the gallows boys and girls, there's some hangin' to be done!


foxmuldar's picture

Is this the same Buffett that made out like a bandit on the GS bailout? Buffett should be charged with Insider leaking of his buy positions. We all know how once word is out that Buffett is buying xyz, the rest of the herd runs to buy xyz. What a racket this guy has going.

YesWeKahn's picture

When you are the richest man in the world, you are powerful.

slewie the pi-rat's picture

here's the #2 comment of this song:

Too bad this vid cut out Sammys intro speech to it. He said "Here's one for all you tractor pullin' motherf*ckers!", then the song kicks in. I was board op'ing at? a radio station carrying this live that day (1st Farm Aid) and 'bout fell outta my chair laughing. The General Manager stormed into the studio and said "did he say what I thought he did?" I replied "you bet your sweet f*ckin farm ass he did".

click the link to see the #1 and hear why i dedicate this to buffets and banksters, everywhere

?1985 Sammy Hagar "I Can't Drive 55" (Farm Aid)?‏ - YouTube

YesWeKahn's picture

When people finally realized that they have been slaves to these powerful people, they will revenge.

frank's picture

poetry: "capo di tutti ZIRP capi".

Buffet and Munger would be wise to keep their mouths shut; but they aren't, so they won't.

Contra_Man's picture

Another fine example of the Blue/Red Flag-Waving Bankster Oligarchs who are moving the goal posts yet once again.  Time to short SKF-N and FAS-N into smithereens as more forehead slaps surely lie ahead for even more Bankster "denied" responsibility.   Check PLease! $85 million is tipping change. LMAO

Caviar Emptor's picture

With so many trillions sloshing around, do the banks really need to go after a few puny ten millions?  

Piranhanoia's picture

Someone has to manage the Mexican M's money. You know your rep is making money on the war on drugs and aren't going to let just anyone handle their bucks, and since WF has been the expert at this, why does anyone believe they aren't still handling this and the payments for the guns we have been selling them?  Is this any less shocking than our banks going long hitler?

rosiescenario's picture

Hopefully a few ambulance chasers may pick up on this as a way to organize some class actions and make a few $$$ off Wells....expect a TV ad something along these lines


"Did your bank lend you money that you cannot now repay? Did they assist you in creating a personal financial statement that you both knew was bogus? Was their appraiser all too happy to arrive at a number meeting everyone's needs?


.....if so, call 1-800-Dewey, Phuquem, & Howe.

cramers_tears's picture

So let's do some math... Wachovia launders 378.4B.  At 5% laundry fee which is probably very low - that's 18.92 Billion - then they pay 110M + 50M=160M in a fee to the GOV INC which computes to 0.7% of Wachovia's take of 18.92B.

Man, it seems like GOV INC could have gotten a way better deal than 0.7%.  Hell, I can find a 1.33% 1-year CD every day.   I need to be sellin' GOV INC some kind of shit... Now, if I can find me a Bankster to lend me the entry fee ($160M) I could make 18.92 Billion... Man, I've got ideas man!  I could save GOV INC so much money!  /sarc

cara leaf's picture

Ummm...(scratching her head in the mirrored room) isn't this the same guy who owned 13% of Moody's while Moody's graded Financial Weapons of Mass Destruction Triple AAA?

rfullem's picture

if I am not mistaken, all WFC loans were graded the same by the WFC underwriters metrics so how do you tell which is subprime? 

ebworthen's picture

It's all good, even the loans given to the illegal immigrants taking on 60% loan-to-income, don't 'cha know...

rfullem's picture

re all the setllements, and the CEOS still tell us it was not an institutional problem but just a bunch of "bad apples" - well you have to be an idiot to own these stocks at all -- no or negative return in a decade and high risk. 

doomandbloom's picture

another 80 year old...who refuses to quit...will take the whole world with him to the grave...


scrappy's picture

There are indeed evils to Gold my friend.

Open your mind, it's the 21st Century!



StormShadow's picture

That is just unreal. Imagine if even 10% of the buyers demanded delivery!