It is hard to believe that most of the big banks caught in criminal activity through the financial crisis survived. Not only did they survive, but with the helping hand of the US Government bailouts, and subsequent rounds of quantitative easing, they have since thrived!
Unfortunately, many lenders that helped create the last financial crisis have continued criminal activity with little recourse from government agencies. Wells Fargo was caught last year opening millions of accounts without customer permission. And as the scandal unfolded, further evidence surfaced about the bank forcing auto-loan clients to pay for unwanted car insurance and improperly charging fees to mortgage customers.
In what is being called a "Rare Act", the exiting Federal Reserve Chairwoman, Janet Yellen, just capped Wells Fargo & Co. size at $1.95 trillion and said it won’t be allowed to grow until it cleans up. Justifying her move, Yellen stated that regulators can’t allow “pervasive and persistent misconduct at any bank.”
Really? America's largest home lender is caught red-handed in criminal activity and is being punished by not allowing it to grow past $1.95 TRILLION? Can we really expect more from a Private central bank that is the banker's bank?
What we really need is action from Wells Fargo depositors, much more than has been seen to date. People who bank at Wells Fargo have a choice. If the Agencies tasked with consumer protection won't do their job, consumers are a powerful force to enact change if they exercise their right to take their money and move banks.
