What You Should Know About Wells Fargo Bank (WFB)

Bloated Banksters

Bloated Banksters

By: Kourosh Behnam
February 24, 2012

HISTORY: Bloody from the beginning

  • Henry Wells and William Fargo founded WFB in 1852 when California’s Gold Rush needed to move the money made from mining  the Sierra Nevada and violently evicting its indigenous people;
  • WFB bought the subprime mortgage monster Wachovia in the 2008 financial panic for $15.1 billion;
  • WFB is now America’s biggest bank, by market capitalization of $161 billion, and the highest rate of profitability.

BLOATED BANKSTERS: Too Big to Jail

  •  Federal taxpayer bailout received, $36.9 billion;
  • Effective tax rate in 2008, 18.5%, almost half of what the average person pays;
  • Offshore subsidiares in tax havens, 77;
  • Campaign contributions in 2008 federal elections, $4.7 million.

FORECLOSE FAMILIES: Growth from Homelessness and Hopelessness

  • WFB originated or co-issued $74.2 billion worth of subprime loans, making it one of the top subprime lenders in the country;
  • WFB was one of the 5 big banks who “robo-signed”, or foreclosed on houses with forged or unreviewed documentation, on countless families;
  • WFB is the second largest mortgage servicer in the nation; they also used the “robo signer”.

HOLDING YOUNG PEOPLE HOSTAGE: Profits from Indentured Students

  • WFB holds $10 billion in private student loans, the average American student graduates $25,000 in debt;
  • Interest rates on WFB student loans are near 18%; unlike credit cards, these loans are impossible to discharge in bankruptcy, and WFB is not offering to reduce the principal or interest rates;
  • Outstanding student loans total more than $979 billion; WFB financies today’s “education bubble.

RIGGING GLOBAL FINANCE RULES:
WFB sponsored the global banking lobbyist group, the International Institute for Finance, 2011 annual meeting in Washington, where the world’s most powerful banks tell government regulators what they want.

Read More: Auction 2012: Greedy Bastards and Student Debt, Big Bank Profile: Wells Fago , Average Student Loan Debt

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