Wachovia Papers Prove Bank Knew About Frauds

New York Times:

Last spring, Wachovia bank was accused in a lawsuit of allowing fraudulent telemarketers to use the bank's accounts to steal millions of dollars from unsuspecting victims. When asked about the suit, bank executives said they had been unaware of the thefts.

But newly released documents from that lawsuit now show that Wachovia had long known about allegations of fraud and that the bank, in fact, solicited business from companies it knew had been accused of telemarketing crimes.

Internal Wachovia e-mail, for example, show that high-ranking employees at the nation's fourth-largest bank frequently warned colleagues about telemarketing frauds routed through its accounts.

Read the whole story: New York Times

Comments

[realitytrumpsbull]

Sleazy, greasy business practices...wrecks our domestic economy, reputation abroad...

[loki]

They take some public flack. Maybe have some kind of fine leveed against them, but they will never really pay it , like most federal fines given out.
If any of the big wigs fall they will have a Platinum parachute and if they still want to play boss, be quietly hired on for millions are year in consultation fees or as CEO of another company.
Wachovia will continue on as usual. Redlining and scamming and criminal actions. Its all part of the American Capitalistic way.

[mamacat]

I thought that the subprime thing was unfortuneate, but maybe accidental, until I talked the other day with someone who used to work in the business. They said it was common knowledge that they were not complying with the laws.
Whether the responsibility for not enforcing oversight and regulation rests with the federal, local, or state governments, a lot of people have been hurt by this mess. It seems that corruption has become accepted in our country, and that worries me. Dirty tricks, corruption, hypocrisy, - how can this country survive with such bad leadership?

[realitytrumpsbull]

The whole mortgage thing has been shaky for a long time, a lot of people owe a lot of money on property they'll never really own, real estate prices have been artificially inflated by housing flippers, it's gone on for years and no one said 'peep', and it's going to fold up like a cheap kite eventually. Then, you'll be renting from 'al'...camels don't eat for free, you know...

[Novista]

Chickens coming home to roost -- couldn't happen to more deserving people. Having had more or less, first hand involvement with Wachovia due to my mother's accounts, when she was dying in a nursing home in Florida. So yes, I already have an axe or grind and shed no crocodile tears for Wachovia.

At the same time, I look at regulatory agencies who claim no jurisdiction, and ask myself: Why should they even exist? And since middle of last year, many people crying for 'more regulation' and this is what you get, eh? Eh???

[RGKahn]

",,,we regret this situation occurred." The only thing that Wachovia regrets is that they got caught. The were making millions off the fees charged to these crooks who were stealing millions from Wachovia customers. To the telemarketers it was just another expense in doing business. What is a million and a half dollars compared to making 150 millions dollars. Remember, the market will police itself, there is no need for Federal Regulations or Federal Regulators in the new republican run economy. This is but the "tip of the iceberg" to what our banks and other financial institutions have been doing these pas seven years.