Monday, July 16, 2012

Wells Fargo Passes Out Wet Food Stamps After Emptying the Pockets of Blacks, Latinos

Just how did Wells Fargo Bank get the biggest bailout of all the banks when they said that they did not need a bailout?

Reportedly, Wells Fargo Bank, the second largest bank in the US after they purchased Wachovia ( well-documented bank that subsists on slave money) with almost half of the $25 billion they received from the government was not hurting at all.

Apparently, Wells Fargo Bank has been double-billing black and Latino home owners in racialized mortgage lending. Nasdaq reports:

On Thursday, the Department of Justice (DoJ) announced that Wells Fargo & Company ( WFC ) has agreed to pay nearly $175 million to settle civil charges against it. The settlement agreement was filed with the U.S. District Court in Washington, D.C. and awaits approval.

The lawsuit alleged Wells Fargo of discriminatory lending practices against qualified African-American and Hispanic borrowers on home loans. Moreover, some of these borrowers were dragged into subprime mortgages. Read more...
It seems as if the "creditworthiness of the borrowers" depended on one's leaning towards tacos and collard greens rather than actual credit scores.

John Stumpf, CEO of Wells Fargo. Puta Alert!
Now $175 million may seem like a nice chunk of change, but, it simply is chump change compared to all the money WFB is racking up. For one, it is well known that banks haven't given a damn dime from the bailout money that was supposed to provide more loans. That money collects millions in interest by the minute.

Then you already had the super-inflated mortgage loans that blacks and Latinos were paying. That money too is collecting interest.

On top of that, you also have the insurance money that WFB has collected and still is collecting for the massive amount of foreclosures that have occurred amongst folk who couldn't pay their mortgages; hence this too has been disproportionately black and Latino.

And then this money has to be divvied up by between hundreds of claimants. Chicago Tribune reports "average payments of $15,000 each to 200 to 300 borrowers".

So the life savings of people, the cornerstone of black and Latino wealth is worth about $15,000?

That is beyond criminal. Wait a minute. No one is getting arrested. But L Boogie might get three years for not paying her taxes, but Wells Fargo and Company just get a slap on the wrist?

If I remember correctly, there was much Negro news about Wells Fargo being supportive of small, black business. Putas puhlease. Take my peso and shove it.

1 ish talking intellectuals holla at a sista:

Reggie said...

Corporate welfare.