Posted on 07/09/2010 2:24:19 PM PDT by Entrepreneur
Wells Fargo & Co., the fourth-largest U.S. bank by assets, plans to eliminate 3,800 jobs, or about 1.4 percent of its total workforce, and close its consumer-finance branch network.
The lender will take a charge of $185 million, with $137 million, or 2 cents a share, in the second quarter, according to a statement yesterday from the San Francisco-based company. Wells Fargo said it will close 638 independent consumer-finance branches and stop making nonprime home loans.
(Excerpt) Read more at businessweek.com ...
Even with good credit, it's going to be tough for small businesses to secure financing when their customers want to purchase large ticket items.
This is a code word for lending to people who can't afford to borrow. These are high interest loans to high risk borrowers. These aren't the kind of loans that most credit-worthy consumers get.
Another 3,800 jobs bites the dust.
The recession that began nearly two years ago hit retailers hard. Among the casualties: Electronics giant Circuit City (CCTYQ.PK - News), department store Filene’s Basement (BSMTQ.PK - News), outdoorsy outfitter Eddie Bauer (EBHIQ.PK - News), skin care specialists Crabtree & Evelyn, fast food franchise Fatburger and photo experts Ritz Camera were among the chains that have reorganized or liquidated since 2008.
3,800 plus more Democrats created. Retailers are the canary chirping people are going broke. More stimulus to make up the slack??
Obama’s fault
Wonderful news for the payday loan folks, or whatever iteration they are currently doing business in...until the Barackracy shuts them down too. One thing for sure, people who need money are going to find a place to borrow...they don’t usually walk away from loans originated by the guys at Breakaleg Finance.
Maybe the feds will take them over as part of the next stimulus package.
They are actually picking up all my business next week since Im firing Bank of Illegals (Bank of America).
Word to the wise: eliminate ALL the debt from your life, even your house payment if possible. Yer gonna need it.
Working on it but I still need three years.
Agree accept when it comes to the house,,, my house note is only $450/month. If inflation hits,, my house note remains the same. When a loaf of bread is $10 dollars,, my house note will remain the same, I can live there for decades off just my savings.
Sometimes I wonder whether to find a private person who would take my loan to get it out of the commercial lenders pockets. I have sterling credit. might be able to drop my rate and give a good three year payback at at least CD rates.
More evidence of the Dumba$$ Administration’s “Recovery Summer”...
Something tells me that thousands more businesses will close in the next 7-8 months, because of the new climate in Washington that is openly hostile to legitimate business.
Several years ago I read that Wells-Fargo was granting home mortgage loans to illegal aliens. Was that correct?
Posted earlier today was article about Merck cutting 16000 jobs. And so it begins.
As panicked politicians prepare to fork over $1 trillion in taxpayer funding to rescue Wall Street, they've fingered regulation, deregulation, Fannie Mae and Freddie Mac, the Community Reinvestment Act, Jimmy Carter, Bill Clinton, both Bushes, greedy banks, greedy borrowers, greedy short-sellers and minority-home-ownership promoters for blame.
But there's one villain that has slipped notice: how illegal immigration, crime-enabling banks and open-borders Bush policies fueled the mortgage crisis.
It's no coincidence that the areas hardest hit by the foreclosure wave - Loudoun County, Va., California's Inland Empire, Stockton and San Joaquin Valley, and Las Vegas and Phoenix - also happen to be some of the nation's largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime. A quarter of all those subprime loans are in default and foreclosure.
Regional reports across the country have decried the subprime meltdown's impact on illegal-immigrant "victims." A July report showed that in seven of the 10 metro areas with the highest foreclosure rates, Hispanics were at least one-third of the population; in two of those areas - Merced and Salinas-Monterey, Calif. - Hispanics comprised half the population.
The National Council of La Raza and its Development Fund have received millions in federal funds to "counsel" their constituents on obtaining mortgages with little to no money down; the group almost succeeded in attaching a $10 million earmark for itself in one of the housing bills passed this spring.
For the last five years, I've reported on the rapidly expanding illegal-alien home-loan racket. The top banks clamoring for their handouts as their profits plummet, led by Wachovia and Bank of America, launched aggressive campaigns to woo illegal-alien homebuyers. The quasi-governmental Wisconsin Housing and Economic Development Authority guaranteed home loans to illegal immigrants.
The Washington Post noted in 2005: "Hispanics, the nation's fastest-growing major ethnic or racial group, have been courted aggressively by real-estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: "Sin verificacion de ingresos! Sin verificacion de documento!" - which loosely translates as, 'Income tax forms are not required, nor are immigration papers.' "
Fraudsters also have engaged in house-flipping rings using illegal aliens as straw buyers. Among many examples the FBI cites: a conspiracy in Las Vegas involving a former Nevada First Residential Mortgage Company branch manager who directed loan officers and processors in the origination of 233 fraudulent Federal Housing Authority loans valued at over $25 million. The defrauders made and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, "Fifty-eight loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million."
It's the tip of the iceberg.
Thanks to lax Bush administration policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders still have no access to a verification system to check Social Security numbers before approving loans.
In an interview about rampant illegal-alien home-loan fraud, a spokeswoman for the US General Accounting Office told me five years ago: "Considering the size of Los Angeles, New York, Chicago, Houston and other large cities throughout the United States known to be inundated with illegal aliens, I don't think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions." The chickens are coming home to roost. Law-abiding taxpayers are going to pay for it.
SOURCE http://www.nypost.com/seven/09242008/postopinion/opedcolumnists/illegal_aliens__the_mortgage_mess_130482.htm
Thanks for this disgusting information about betrayal at several levels of the interests of U. S. A. by its own government and financial institutions. As for the lax Bush administration immigration policies, we can expect only worse from America’s Public Enemy Numero Uno.
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