In April 2006, while Goldman was preparing an RMBS backed by Countrywide loans for securitization, a Goldman mortgage department manager circulated a “very bullish” equity research report that recommended the purchase of Countrywide stock. Goldman’s head of due diligence, who had just overseen the due diligence on six Countrywide pools, responded “If they only knew …”
– Annex 1, “Statement of Facts,” Goldman Sachs/U.S. Department of Justice, April 11 2016
“In his capacity as Vice President of Credit-Risk — Quality Assurance at Wells Fargo, Lofrano executed on Wells Fargo’s behalf the annual certifications required by HUD … Moreover, Lofrano received Wells Fargo quality assurance reports identifying thousands of FHA loans with material findings — very few of which Wells Fargo reported to HUD.”
– Department of Justice press release, April 8 2016
A $5.1 billion fraud settlement from Goldman Sachs, a $1.2 billion fraud agreement with Wells Fargo – and that’s just from the past week. Over the last several years banks have paid an estimated $200 billion in fraud fines and settlements. How many settlements, how many billions, will it take to convince some fact-resistant pundits and politicians that there is an epidemic of fraud on Wall Street?