It is unconscionable that the former CEO of Wells Fargo, John Stumpf hasn’t gone to jail for what he’s done with this company. There’s no way that any of what happened here is remotely legal.
Here’s the latest in the ongoing saga of America’s Worst Bank:
Hundreds of people had their homes foreclosed on after software used by Wells Fargo incorrectly denied them mortgage modifications.
The embattled bank revealed the issue in a regulatory filing this week and said it has set aside $8 million to compensate customers affected by the glitch.
The same filing also disclosed that Wells Fargo is facing “formal or informal inquiries or investigations” from unnamed government agencies over how the company purchased federal low-income housing tax credits. The document states the probes are linked to “the financing of low income housing developments,” but does not offer further details.
Reuters first reported news of investigations and mishandled mortgage modifications on Friday.
Wells Fargo has been mired in a series of scandals in recent years that have cost the firm billions and left it facing a string of lawsuits and investigations.
Earlier this week, the Justice Department announced Wells Fargo agreed to pay a $2.1 billion fine for issuing mortgage loans it knew contained incorrect income information. The government said the loans contributed to the 2008 financial crisis that crippled the global economy.