|(Boston, MA) – Sen. Elizabeth Warren’s intense criticism of Wells Fargo CEO John Stumpf today before the Senate Banking Committee was a long overdue dressing down of one of the largest contributors to the mortgage bubble and the resulting national economic disaster, according to Bruce Marks, Founder and CEO of NACA, the nation’s largest non-profit home ownership and community advocacy agency. |
Senator Warren called for Stumpf to resign and return compensation received during the time frame in which the bogus accounts were created. She also called for Stumpf to be personally investigated by the Department of Justice and the Securities and Exchange Commission for his role in creating overly aggressive sales goals that resulted in the creation of more than a million fraudulent accounts.
“Senator Warren was dead-on in her criticism of Stumpf”, Marks declared. “As a result of the unchecked actions of John Stumpf and other Wall Street executives, the Great Recession ended with the creation of a predatory economy. Not only are there still lingering effects of the mortgage crisis, but actions like Wells Fargo’s phony accounts and the still growing student debt crisis demonstrate Wall Street’s continuing greed and focus on growing their bottom lines at all costs, including cheating working people at every turn.”
Marks continued, “This time, Wells not only cheated more than a million of their own customers, but even cheated their own employees when it fired more than five thousand people who had been coerced into creating phony accounts. This was because of completely undue pressure from Stumpf and the rest of the greedy and disconnected executives at Wells, and is a case of a shark resorting to eating its own young avoid taking responsibility for its actions.”
Senator Warren is absolutely correct in her statement that the only way Wall Street will change is if executives face jail time when they preside over massive frauds. NACA has long advocated for bank executives accept personal responsibility for the predatory lending and NACA supports Senator Warren in her call for both Department of Justice and SEC investigations of John Stumpf.
About NACA (www.naca.com): NACA is the largest HUD certified non-profit home ownership and community advocacy organization. NACA is the most effective organization in modifying mortgages and provides the best mortgage in the country. NACA CEO Bruce Marks was named Bostonian of the Year for 2007 because of his work in getting the major lenders and servicers to modify home loans for borrowers who come through NACA. See Bostonian of the Year. He has also testified before Congress on numerous occasions including September 12, 2000, being one of the only people to sound the alarm of the pending mortgage crisis. For more information go to www.naca.com