World Economy

Wells Fargo to Pay $1.2b Fine

Wells Fargo to Pay $1.2b FineWells Fargo to Pay $1.2b Fine

Wells Fargo has agreed to pay the US government $1.2 billion for hiding most of its bad loans in the years leading up to the 2008 housing market crash, CNNMoney reported. The bank admitted it certified that thousands of faulty home mortgage loans were eligible for Federal Housing Administration insurance. When the market crashed in 2008, American taxpayers ended up on the hook for the bad loans. “Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust,” Manhattan US Attorney Preet Bharara said in a statement.