Warren Buffett's Wells Fargo Busted For Lying To People, Wristslapped With $85 Million Fine By The Emperor Of Moral Hazard Himself
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.