Wells Fargo Bank: Too Big Too Fail And Too Big To Fight?

Quid Pro Quo?

Why did Wells Fargo accept “Justice Department Reaches Settlement with Wells Fargo Resulting in More Than $175 Million in Relief for Homeowners to Resolve Fair Lending Claims”?

Big financial institutions will receive big government bailouts if they do not resist big government’s attempts to punish them?

Incredibly Spineless

Why Wells Fargo or other banks do not fight back when very controversial disparate impact analysis, which originated in discriminatory employment practices, is applied to mortgage lending practices.

Wells Fargo is willing to pay $175 million in fines and compensation to allegedly discriminated borrowers instead of telling this zealous Attorney General for the Justice Department’s Civil Rights Division, Thomas Perez, to take his extortion act somewhere else. Given that the November 2012 election may change the whole picture it was incumbent on Wells Fargo to fight back. With $175 million you can pay 175,000 billing hours of attorney’s charging $1000 per hour. That is no brainer to me: Bring it on Mr. Perez.

Further, according to the settlement Wells Fargo is on the hook for more payments as it says “Compensation paid to any retail borrowers identified in the review process will be in addition to the $125 million to compensate wholesale borrowers who were victims of discrimination.” (Emphasis added).

Stain Of Unfair Lending

Now Wells Fargo sort of confirmed with this coward act that big banks conspired against borrowers and that big banks are responsible for the financial crisis of 2008. By accepting this frivulous settlement Wells Fargo appears to be hiding something.

The CEO of Wells Fargo should immediately resign if he has any respect.

Wells Fargo Failed To Break This Vicious Catch 22 Cycle

If big banks do not lend to risky borrows they are threatened by the Justic Department and if they charge risk premiums they are threatened as well. The only winner here: Big Government!

What Is Wrong With The CEO’s Of Big US Banks?

Was it not enough that Treasury Secretary Henry Hank Paulson gathered the CEO’s of nine of the nations largest banks in one room in October 2008 and strong armed them into into ceding $250 billion worth of equity in their enterprises to the U.S. government. Any decent CEO would have walked out of this meeting.