Consumerist
merry christmas
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recession watch
Bernanke Says The Recession Is "Likely Over"
Good news? Federal Reserve Chairman Ben Bernanke says that the recession is over, but that it won't really stop the rise of unemployment — currently at a 26-year high of 9.7%. More » -
smoking gun
Affidavits On How Wells Fargo Gave "Ghetto Loans" To "Mud People"
Here's the official court filing (PDF) so you can get the full details on how Wells Fargo pushed or even fraudulently placed black borrowers into sub-prime loans, even when those borrowers could afford prime loans, along with an office environment where employees threw around racist slurs, calling black borrowers "mud people" and their mortgages "ghetto loans." The official statements referenced in the NYT article are in this document in full. The affidavits begin on page 48. Two screenshots inside... More » -
affidavits
Loan Officers Detail Wells Fargo's Blatantly Racist Subprime Loans
UPDATE: Read the affidavits here.
Meet Beth Jacobsen and Tony Paschal, two of Wells Fargo's top subprime loan officers, who recently gave affidavits detailing the bank efforts to needlessly steer minority Baltimore families into subprime loans. The banks shady dealings include setting up a special unit to target "mud people" with outrageously expensive "ghetto loans;" targeting black churches leaders because they "had a lot of influence and could convince congregants to take out subprime loans;" and offering cash bounties to loan officers who issued subprime loans to minority communities. And it gets so much worse... More »
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recession watch
1 In 8 US Households Either Late Or In Foreclosure
Here's your daily depressing mortgage news — as employers shed jobs mortgage delinquencies are rising — intensifying and spreading the mortgage crisis. More » -
foreclosure
Make The Bank Prove It Really Owns Your Mortgage Before You Let Them Toss You Out
We've written about this before, but as more and more people face foreclosure (last year's foreclosures totaled 2.3 million, according to the AP) its a good time to remind people of this strategy. More » -
customer service
Bank Of American Puts Congresswoman On Hold For Two Hours
Don't take it personally if you can't reach Bank of America to renegotiate your mortgage payments. Congresswoman Maxine Waters (D-CA) tried calling the bank on behalf of two constituents, only to be "repeatedly put on hold for long stretches, disconnected, transferred to extensions that did not work, and ultimately switched to a recording which directed her to the bank's website." More » -
mergers and acquisitions
Bank Of America Fires Former Merrill Lynch CEO
It seems that Bank of America didn't really appreciate that unexpected $15.4 billion dollar 4th quarter loss by Merrill Lynch — because its former CEO, John Thain has been shown the door. More » -
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worst company in america
Countrywide To Fixed Rate Customer: Your Mortgage Is About To Adjust!
Countrywide either doesn't know, or doesn't care that reader Graham has a fixed rate mortgage, because they keep sending him "notices" that his mortgage is about to "adjust." More » -
money meltdown
Understand The Financial Crisis In 3 Minutes
If you or someone you know still scratches their head when trying to understand how the financial crisis began and played out, the Washington Post has a 3-minute slideshow with voiceover by business reporter Frank Ahrens that clearly and succinctly explains how it all happened. The pictures are pretty, too.
Anatomy of a Crisis [Washington Post]
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had a bad day
Greenspan Says That His Free-Market Ideology Was Flawed
Here's something that probably doesn't happen too often. Former Federal Reserve chairman Alan Greenspan had a crappier day than you did. He had to admit before our federal government that his free-market, anti-regulation ideology was "flawed." Ouch. More » -
economy
Consumer Spending Will Shrink For The First Time In Nearly Twenty Years
Consumer spending, the engine that powers our economy, is probably going to shrink for the first time in nearly two decades, says the NYT — a move that will "all but guarantee" that the current economic crisis will deepen. More » -
wachovia
Citibank, Wells Fargo May Carve Up Wachovia, Feast On Its Bones
Bloomberg is reporting that Wells Fargo and Citibank may split Wachovia. Neither bank would get assistance from the government and taxpayers under the deal being discussed now. More » -
wachovia
Not So Fast: Judge Blocks Wachovia Sale To Wells Fargo, Citibank Rejoices
Tsk tsk, Wells Fargo. You should've known that stealing Citibank's unspoiled bride at the alter was going to draw a bitter legal challenge. Late last night, Citibank's team of repo-lawyers claimed a partial victory, announcing that a New York judge has agreed to block Wachovia's sale. Citibank is also demanding $60 billion from Wells Fargo for interfering with the deal. More » -
money meltdown
Why Did Everyone Buy This Stupid Toxic Debt? No One Understood It
Marketplace has the answer to one of the most troubling questions of our time. Why did people who are supposed to be smart buy all this stupid toxic risky debt? Apparently, it's because they weren't that smart, and they didn't understand what they were buying or selling. More » -
money meltdown
UBS Uses Markets, Not Goverment, To Deal With Sub-Prime Crisis
Instead of sucking off the blood of taxpayers, Swiss banking giant UBS is weathering a financial crisis wrought by investing in bad mortgages by aggressively selling off its U.S. commercial and residential mortgage-related assets. Reports Forbes: More » -
wall street meltdown
10 Things To Expect From The New Post-Apocalyptic Economy
Kiplinger's has put together a list of 10 things that you, fair consumer, can expect from our new post-wall-street-apocalypse economy. Should you be scared? Maybe. More » -
badvertising
WaMu Says, "Take A Picture It Lasts Longer..."
Reader Steve says this photo was taken at the Austin City Limits Festival on the same day that WaMu was seized by federal regulators — making it not only funny, but extremely accurate. More »
