» This is both the largest consumer protection fine ever levied by the Fed and the first time the institution has punished a bank for nudging customers into subprime loans. There’s more to come, too; in addition to the fine, the order also “requires that Wells Fargo compensate affected borrowers,” although it’s unclear how this will work. It’s better than nothing, but $85 million just seems a bit low; as a point of comparison, the bank made $2.5 billion in the first three months of 2010 alone.
They’ve ignored our calls, ignored our letters, legally this is the next step to get my clients compensated.Attorney Todd Allen • Describing the process he went through to get his clients their money back. That’s right, he foreclosed on the bank, forcing the bank to pay back attorney’s fees by padlocking the doors. Maurenn Nyergers and her husband, Florida residents who paid for their home in cash, received a false foreclosure request from Bank of America, forcing them to fight the charges in court. The homeowners won their case, but Bank of America didn’t pay the fees after five months, so (with a little help from the Sheriff’s Department), on went the padlocks and out went the computers, furniture and money from the tellers’ drawers. An hour later, the bank manager resolved it like that. Gotta love it. source (via • follow)
You know Countrywide? Of course you do, if you have any knowledge of big evil companies that screwed millions of good people by convincing them to get into subprime mortgages. Before the proverbial doo-doo hit the fan, the company’s former CEO, Angelo Mozilo, cashed out big time, using his insider knowledge to ensure a big payday. Now, a couple years after the fact, the SEC twisted his arm until he agreed to forfeit a bunch of that money. The details: