Thursday, October 25, 2012

Wells Fargo’s Directors Ordered to Face Foreclosure Claims

From the article:

"U.S. District Judge Susan Illston in San Francisco rejected Wells Fargo’s request to dismiss shareholders’ allegations that directors wrongfully failed to disclose their opposition to a government probe of the bank’s mortgage lending and foreclosure policies."

Now shareholders are suing as those same investigations wold have benefited them and their claims against management.

Fascinating, absolutely correct, and also applies to holders of certificates issued by securitized trusts (that own pools of loans) and their claims against the trustees of the pools (the major banks) and the master-servicers / servicers of the loans (again, the major banks) for how foreclosures were handled as those practices hurt their investments as well. 

Wells Fargo, and several others, did all they could to disrupt the investigations into foreclosure practices leading up to the National Foreclosure Settlement last year.  The banks' efforts to deny investigators access to robo-signers, documents, data, etc., was well documented in the IG reports that can be found on HUD's Website

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