A Wells Fargo senior VP responsible for foreclosed properties moved into a $12 million mansion in Malibu and turned it into an exclusive party pad just after the owners - a couple whose savings were wiped out in Bernie Madoff's ponzi scheme - surrendered the house to Wells to settle debts. The exec's free ride could spell disaster for Wells Fargo and its peers in the mortgage-lending industry -- and it could cost her her job ... and her freedom.
Community banks across the country continue to fold under the pressures of the nation's economic crisis, as soured loans stack up and drain balance sheets. The doors on three more regional banks - in Illinois, Minnesota, and Washington - were closed Friday.
Wells Fargo, JPMorgan Chase, and other major banks are fraudulently closing down home equity lines of credit (HELOCs), Chicago attorney Jay Edelson is alleging on behalf of a number of clients. Edelson has embarked on a crusade against the banks for suspending HELOCs when a computer program tells them – falsely, he claims – that a borrower's house has declined in value.
We're in a housing recovery, right? Not according to Wall Street's prognosticating Queen of Darkness, banking analyst Meredith Whitney, who told CNBC that U.S. home prices would plummet again - as much as another 25 percent - as persistent unemployment problems deepen the foreclosure crisis.
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