Financial Crisis Commission Examining Wachovia/Wells Fargo (Time to ditch?)

The purchace of Golden West and their sub-prime mortgage business is what doomed WB. WB showed up late to the show, wanting to get in on the action that all the other banks were profitting off of, and the deal went down right as the subprime bubble was bursting.

If they want to have a witchhunt, how about they go after Barney Frank?

This is a shallow attempt to punish a private business for taking risk, and refusing government handouts in the form of TARP money... It really pissed off alot of people in the government when WB shareholders accepted WFC's offer and hung Citi out to dry (which Citi then needed to be bailed out by TARP to the tune of 45 BILLION).

For who? Local banks? Credit unions?

Why? And yes, this is a trick question.

You do know that neither your local bank nor your credit union actually process any of your accounts. The payment on your house, car, boat, or even have the money to lend you for those?

They all run them THROUGH one of the super regional or national banks. Every single one of them. Since the mid 90s.

It’s too expensive to have all your own in house servicing, collections, LDA, Underwriting, mail service, payments, processing... etc

Nope. None of the small banks or credit unions have done this in house for 15 years. It was all outsourced to “us” a long time ago.

The only difference between a big bank and a small bank or credit union, is the personal banker won’t get promoted and moved to some other part of the country in a couple years, so you will see the same person and think they know you.

They won’t give you a better rate than you’d get shopping around as a total stranger. They don’t charge less for bad checks.

They are de facto, OUR branch banks with a different logo.

And more of them fail than do the big banks. Many times over. I cannot count how many small banks we buy each week. Fire 100% of their staff, slap our logo on 1 out of ten of their buildings, and sell the rest.

That is how it is done.

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