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More on the Wells Fargo (WFC) settlement: The fine looks to be at least $175M (leaked earlier as...
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Thursday, July 12, 2012, 3:47 PM ETMore on the Wells Fargo (WFC) settlement: The fine looks to be at least $175M (leaked earlier as $125M). The DOJ investigation found mortgage brokers working with the bank charged higher fees and rates to minorities than to white borrowers with the same credit profile. Wells, of course, admits no wrongdoing as part of the settlement, which also closes a number of ongoing lawsuits around the country.
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"Minorities" are "steered" into "subprime." "Whites" are (steered?) allowed to take out "prime." That means Obama's mother would have paid 5.5%, Obama's father would have been steered into the eight-percenter and Obama himself would have gotten 6.75%.
"Let's call the whole thing off."
-- Rodney King Berra
"And when she stepped through the looking glass she noticed that 85% of the people were designated as 'minorities.'"
From "Yogi in Wonderland"
Banks clearly had an incentive to lend to unqualified borrowers by getting a better paper return which could be sold off to another entity before anyone was wise to it.