DOJ allows them to move forward with billion dollar fraud case. Which sets the precedent to go after them for the loans done the same exact way in 2012. 92 billion! They did 40% of FHA's volume. And the stock doesn't blink. I'll hand it to y'all, ignorance is truly bliss. Shocking.
amisock, its a good topic to discuss however you ruin the discourse by speaking so disparagingly.
Unless we are talking about two seperate issues, what they are talking about is legal minutia. Rather than fraud I think of it as failing to report certain findings on its loans. If they had just blown the whistle on themselves they would not be facing a fine. I have not been following the story, but I dont think they are trying to put the loans back onto their books, but rather just a fine for non compliance.
I tell you what, the reason why banks are so tight is because they envision the loan being unsalable because of not crossing a T or dotting an I. What we have going on is Wells Fargo having over lays ontop of what will be bought by FHA so that if it were unsalable they wouldnt mind it too much.
I think they are setting up a precedent to insure against the massive 92 billion wfc did in 2012. And they did them in the same exact fashion. not sure how that is my opinion or disparaging. I worked there and ran the sales side of mortgage for all of 2012 for two states. The market, the regulators, all give wfc a pass. But FHA has money and existence on the line. That is the thing, where we catch the conscious of the king. And it ain't going to be pretty for wfc. there are giant risks all over this company but no one sees it. Thats what I find a good topic. illusion. complacency. and I am buying more 2015 puts. my 300 put option trade should appear on the bid board in the next few days.