corporate greed

The final of two articles describing how Wells Fargo is passing the buck, and doing their part to driving the economy down. Dick when are you going to realize the consumer can have the last word.

Thank you to designerfied.com for the perfect image to suit this article

Wells Fargo scandal part 2

The credit lending industry is seeing an increase in foreclosures, this is not news. However, as we discussed in last week’s article banks need to recoup their losses, they also need to create a cushion. As business principals go, cushions are a must when a deeper recession is in the works. What Wells Fargo has done though is create a short term fix for a long term problem. The web is a plethora of exciting articles for example reallifeaccounting.com talks about “over a million people file for bankruptcy during an economic boom”¹ could this number exponentiate during a deep recession? Wells Fargo along with a few other lending institutions is gambling that it won’t happen, won’t they be surprised? We would like the executive team at Wells Fargo to consider the old adage “every action has a consequence”

We put an emphasis on old Dick last week, but let’s go ahead and implicate Wells Fargo Executive Team and the senior analysts. Let’s just list all the crooks at Wells Fargo shall we:

Howard I. Atkins, Senior EVP, Chief Financial Officer
David A. Hoyt, Senior EVP, Wholesale Banking
Richard M. Kovacevich, Chairman
Richard D. Levy, EVP, Controller
Michael J. Loughlin, EVP and Chief Credit Officer
Mark C. Oman, Senior EVP, Home and Consumer Finance
James M. Strother, EVP, General Counsel, Law and Government Relations
John G. Stumpf, President and Chief Executive Officer
Carrie L. Tolstedt, Senior EVP, Community Banking
Julie M. White, EVP, Director of Human Resources

Now you the reader can get cozy with the “Team” although don’t expect them to take your calls. John Stumpf aka Dick’s pet will inevitably be the fall out boy when Wells Fargo stock sees a double digit decline by the first of next year. Don’t worry about John though he’ll have that nice “golden parachute”, and some other lending facility will snag him up.

One of our focal points to this article is the interest rate increases seen across the country. Now Wells Fargo does not just do business with consumers, they also lend to small businesses and large corporations. Let’s take for example Wells Fargo offers solution for the Oil industry², we all know the oil industry is in dire straits. So let’s put this into perspective, A small oil company always has debt and little reserves, if they were to be delinquent more than two times on a payment do you honestly think Wells Fargo will more than double their interest rate like they do to the average consumer? An example of Wells Fargo industry lending practice lies right here: http://biz.yahoo.com/ap/080410/sunpower_credit_line.html?.v=1 Sun power received a 300% loan increase even though their stock declined, What about Sun Power’s interest rate did it get raised to 23.99%? Wouldn’t it seem easier to create a cushion by slightly raising interest rates across the entire system instead of picking on the people? What a nice thought that is, but the truth in the matter is industry has a better chance of securing loans to wash bad debt than say John .Q Public.

So now what? How do you get rid of that nasty Wells Fargo card and say goodbye to those criminals for good?

Let’s attack the first and most common answer, pay it off. Unfortunately most people will not be able to do this.

Second transfer your balance to another account; just make sure that it is not an “umbrella” company of Wells Fargo, or Bank of America.

Third head over to the FTC website and study your possible avenues. If you can find your original or most recent Terms of Service agreement with Wells Fargo, study it, and look for errors they have made. Being the crooks they are there is possibility they screwed up (all criminals do).

Last, if you are in such financial dire straits that you have no other choices but to file bankruptcy, then do so knowing that Dick and the boys won’t be getting anymore of your money. The Corporate ideology is if a consumer files Bankruptcy that the cost will be absorbed by other consumers through higher interest rates, well let’s not forget they are already doing that to you now.

Just to sum it up here, Wells Fargo has never had your best interest in mind, nor will they ever. Wells Fargo is the epitome of greed, and it’s time to hurt them financially. Dick and crew I hope this article finds you, and that your customers are able to financially give you a good old ass whipping.

Sources

1. 1. http://reallifeaccounting.com/blog/articles/601.aspx

2. 2.https://www.wellsfargo.com/com/industry/