Wells Fargo pins unauthorized account scandal on community banking
Remember the glorious halcyon days of community banking and President Obama's reinvigorated Community Reinvestment Act? Didn't do much for the inner cities – mostly, it lined the pockets of President Obama's campaign political hipster allies. Sure, the SEIU railed against "Wall Street Banksters." But what was going on was that bankers took on a social justice warrior armoring, got President Obama's imprimatur to get greedy through embracing his lend-to-the-inner-city-or-else rules, and cried all the way to the bank, reaping bigger profits than ever.
Today's news is that Wells Fargo has managed to "claw back" $75 million in ill gotten gains from some of these social justice warriors.
The federal meddling also seems to have opened the spigot for a massive amount of other corruption. Wells Fargo, which has been engulfed in a scandal over bankers padding their commissions by opening unauthorized credit accounts for customers and then charging for them, has issued a major report about its disgusting behavior toward its customers, pinpointing the root of the problem on...its top community banker. You know, the one in charge of implementing the Community Reinvestment Act, which forced banks to lend to people with little capacity to repay. It was that sort of thing that contributed to the mortgage crisis, and it's never been corrected.
Turns out it caused a lot of other problems with its focus on one set of standards for one group of people and another for another. The bankers decided that with that logic, a third standard could be applied to themselves. This is how corruption is made.