mr_subprime

The Banking Time Bomb Test

The New Orleans Pension Fund just filed suit against Wells Fargo and all the other participants in the Wells Fargo Mortgage Trusts from (what looks like) 2005-2007 vintages. A group of appraisers is suing Wells Fargo for strongarming and blacklisting them if they didn't "hit the numbers" Wells' agents were looking for on appraisals. And yes, I'm suing them for fraud in the origination process. I would surmise the real stress test is going to happen in the courtroom!