The Fed Closes In on Wells Fargo

The Fed Closes In on Wells Fargo

Prior to Janet Yellen had been headed out of the home associated with Federal Reserve, she did one thing unprecedented when you look at the reputation for the main bank: She slipped a choke chain on Wells Fargo that inhibits its development until it not any longer exhibits “pervasive and persistent misconduct. ”

On the list of items that require clearing up are legal actions from a small number of cities—Philadelphia, Miami, Oakland, Miami Gardens, now Sacramento—alleging that the bank’s predatory and discriminatory financing to minority borrowers tripped a spiral of foreclosures causing blighted communities which have drained municipal resources.

What the matches have as a common factor is the allegation that the bank handed loans to African-American and borrowers that are hispanic it knew or must have known would become troubled.

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