Wells Fargo to pay $2.09B for contributing to the financial crisis
They accomplished this by… issuing mortgage loans that contained incorrect income information. Tens of thousands of mortgage loans, in fact. These loans were packaged into securities and eventually defaulted because people couldn’t afford their mortgages.
No one individual was harmed… according to Wells Fargo. That is correct. The only ones hurt were waves of investors, which included other financial institutions, that lost billions by investing in mortgage-backed securities that contained some of these “creative financing” loans. But in the company’s defense (of themselves) other banks have done similar things in the past.
It’s in the past… and these mortgages were approved between 2005 and 2007 which seems like a really long time ago. But this is just more salt in the wound for a company that has had many issues, including the fake-accounts scandal. These scandals have all damaged the company’s bottom line, which should come as no surprise. One can imagine the damage of being the least trustworthy in an industry that few people trust in the first place.