Wells Fargo to pay millionaire fine for real estate crisis of 2008

The bank Wells Fargo has been fined by 2,100 million dollars for the damages caused almost a decade ago to the financial and real estate market, after selling mortgages as assets under high risks.

Between 2005 and 2008 the bank issued bonds attached to mortgages that caused devastation to those involved. A notorious case is that of the Lehman Brothers business bank that went bankrupt and affected the world economy.

The authorities have determined that Wells Fargo “knew that (those assets) had erroneous reports on the income (of the debtors) and that the credits did not meet the quality criteria applied.”

The omission of the bank caused serious damages and losses to the investors. On average, half of the loans resulted in a cessation of payments. The demands that derived from the case affected dozens of renowned firms in the global financial system.

Finally, the authorities have established a multi-million dollar fine against Wells Fargo, which continues to be punished for illegal actions, such as opening millions of accounts on behalf of its clients without their knowledge.

M.Pino

Source: Swissinfo.ch

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