The nation’s largest mortgage lender, Wells Fargo, has been under scrutiny by U.S. government attorneys for more than a year now regarding the company’s role in mortgage bond sales. Last year, President Obama set up a task force to determine whether banks like Wells Fargo broke the law while underwriting and then selling mortgage bonds. Should the San Francisco-based bank be found to have violated the Financial Institution Reform and Recovery Act (FIRREA), it could be sued for fraud by the U.S. government. Other banks being investigated include Bank of America, Credit Suisse Group AG and JPMorgan Chase & Co. Should any or all of these financial Goliaths be found guilty under FIRREA, the penalties and fines could make JPMorgan’s current $13.2 billion plea look like spare change. At that point, does anyone want to hold shares of these companies?
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: