Dirt Diggers Digest
The Justice Department and the federal regulatory agencies have been less than energetic in prosecuting corporate crime and misconduct lately, so it was interesting to see the DOJ announcement that it had gotten Wells Fargo to fork over $2 billion to resolve a case involving mortgage-backed securities.
... Most of the other banks settled their toxic securities cases long ago. Wells held out and has now been rewarded by the Trump DOJ with a settlement that is substantially smaller than the ones that preceded it. JPMorgan Chase settled for $13 billion in 2013 and Bank of America for $16 billion the following year.
If anything, Wells should have been forced to pay out more to penalize it for its resistance. Moreover, during the years since its competitors resolved their cases, a tsunami of negative revelations have occurred regarding the other misconduct of Wells.
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