Wells Fargo foreclosures
Wells Fargo was established in 1852 in New York City by Henry Wells, William Fargo and several others. Their purpose was bringing banking and express services to California during the height of the Gold Rush. The first offices opened in San Francisco, in the heart of the Gold Rush, expanding into the mining camps which eventually became towns of their own. Wells Fargo, typified by the trademark stagecoaches, served the pioneers and businesses with reliable banking, mail service. They also provided transport of gold, silver and other necessary items. They became an unforgettable part of the history of the American West. In 1918, the US government prohibited them from transporting mail or express as a wartime security measure. This is when the company shifted its focus into banking. They opened several branches in San Francisco and continued to expand to cover the entire American West. Currently the company is a diversified financial services corporation with global operations. It is listed as the fourth largest bank in the US based on assets and holdings. In market capitalization, Wells Fargo is first. It ranks as second in terms of deposits, mortgages and debit card servicing. Wells Fargo has an excellent record in the financial world as being the only domestic bank to receive AAA rating by the Standard & Poor’s Index in 2007. However, the rating has since been lowered to AA due to the recession.
Wells Fargo was practically crippled by the recession which started in 2007, which is still continuing to this day. In order to avoid bankruptcy, the bank had to take a $25 billion bailout package from the federal government. Since the company is one of the biggest mortgage lenders in the country, Wells Fargo foreclosures during the subprime lending crisis have been very numerous. The bank has been the target of federal probes regarding its foreclosure procedures. Currently it is addressing numerous suits and is trying to improve their public opinion after the Wells Fargo foreclosures scandal. On January 19, there is a hearing in the supreme court of New Jersey, where a judge will hear complaints filed against Wells Fargo and several other large mortgage lenders. This lawsuit asks the state to indefinitely suspend single family home foreclosures. This process has been duplicated in 22 other states as well, with all the lenders protesting that they have taken steps to remedy the questionable processes.