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“Before I refuse to take your questions, I have an opening statement.” ~Ronald Reagan

By Catherine Austin Fitts

Wells Fargo has admitted to creating 1.5 million unauthorized retail bank accounts and 565,000 unauthorized credit applications. Speaking as the former Assistant Secretary of Housing – FHA Commissioner, my questions are:

  • How many credit cards were issued to the phony account holders?
  • How many auto loans were originated for the phony holders?
  • How many mortgage loans were originated for the phony holders?

Moreover, if credit cards and loans were associated with these accounts:

  • Who provided related auto and housing insurance?
  • How many of the mortgage loans were insured by VA or FHA?
  • How many mortgage loans were securitized by Freddie Mac, Fannie Mae, and Ginnie Mae?
  • Who are the private investors who bought the related securities?
  • Are they being paid an above market return?
  • Are any of these securities being purchased by central banks? If so, which ones? Are phony account mortgages from Wells Fargo among the$1.763 trillion of mortgage-backed securities on the Fed’s balance sheet?
  • Where did the proceeds of all the mortgages and related securities go?

 

Finally, Warren Buffet’s firm Berkshire Hathaway has been a significant investor in Wells Fargo for many years. Berkshire Hathaway, with significant interests in the auto and mortgage industry, is a major investor in asset backed securities, including mortgage backed securities.

  • Normally, a regular commentator on financial system shenanigans, why has Mr. Buffet been so quiet in regards to the unfolding scandal at Wells Fargo?

 

Related Reading:

Subscription Only: Buffet’s Big Bet on US Federal Mortgage Credit and Housing

In Wells Fargo’s Bogus Accounts, Echos of Foreclosure Abuses

Buffet Says He Will Wait Until November to Comment on Wells Fargo

Does the Fed Own 10 Million Mortgages

Freddie Mac and Fannie Mae Inflating the Next Housing Bubble

Reader Comment:

In 2011 I received 4 inquiries from homeowners in my area (city of 100,000+) over a time span of 7 to 8 months. All had the same story, same profile and same outcome. They were elderly single ladies that had owned their home for years and had equity in the property. The story was they received an unsolicited phone call from their mortgage servicer, Wells Fargo, and offering to lower their monthly mortgage payment plus they could stop making payments until the new mortgage started. They would call Wells Fargo to check on the process of the new loan and was told “we are working on it”. Well, after about three months after the initial contact they get a knock on their doors to inform their property has been sold. I don’t know if there were other homeowners this happened to but it does seem someone in Wells Fargo was scamming older ladies and probably working with a realtor.

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