What is important to recognize is that the presumptions from the bench that the banks would not intentionally commit crimes or violations is wrong. It is important because all legal presumptions are predicated upon the supposition of trustworthiness of the party proffering evidence. This presumption is wrong. The banks have been fabricating accounts, “business records” and claims for years throwing the mortgage market and the economy into a deep recession from which we have still not recovered. We can;t recover until the fraud stops.
It was the CFPB who uncovered this fraud committed by Wells Fargo. AND by the way the CFPB was NOT ruled unconstitutional. The judge merely declared its structure to be unconstitutional because it was not subject to proper oversight. The same judge in the same opinion said that the agency would continue under oversight of the President.
The well-publicized case of Wells Fargo misconduct doesn’t prove anything as to any particular pending case. But it does point to the fact that Wells Fargo (like other TBTF banks) was and is perfectly willing to engage in false representations and creation of fabricated, forged and false documentation in order to increase the value of its stock. Apparently Wells Fargo decided that its stock price is more important than its brand. Other TBTF banks have done the same.
The creation of false accounts for retail bank customers is identical to the creation of false accounts from institutional investors who were led to believe that their money was being used to fund a new entity (an IPO) into which their their money would be placed for management. The entity was mostly a REMIC Trust that existed only on paper and never received the proceeds of sale of MBS instruments. The REMIC was supposed to acquire loans that had been properly originated and subject to the same underwriting standards as the banks would do if they were lending the money themselves. None of that happened.
The money from the MBS purchasers was instead diverted from the REMIC and used to secretly fund loans and to create the illusion of trading profits that were in actuality theft from those investors. The exorbitant fees arising out the “closing” of each mortgage loan was never disclosed. Had the MBS purchasers and homeowners known the truth, they would have known that the investment bank that created this illusion was diverting trillions of dollars away from the economy and which would be lost forever to both the MBS investors and the homeowners who were pawns in this scheme.
MBS purchasers believed they had accounts with their share of MBS issued by Trusts that were funded with investor money and which then acquired loans. In fact, all that happened, was that false end of month statements were delivered to the MBS purchasers lulling them into a sense of false security. The “closing” documents on the “loans” gave the MBS purchasers no interest in the debt, note or mortgage or deed of trust. The investors were left naked in the wind. The payments they were receiving were coming from part of their own money plus the part of the payments of borrowers. The investment bank and its chain of conduits reaped huge fees for these fictional accounts.
Ditching the CEO is just more PR. He still walks away with a king’s ransom.