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An Irresponsible Silence on Wells Fargo

Wells Fargo
AP
Wells Fargo

How is it that Wells Fargo escaped being sued by the Federal Housing Finance Agency (FHFA)?

This is an important question that both the bank and regulators have so far refused to answer.

There is some speculation that Wells Fargo might be on the verge of a settlement with the government. Others speculate that the lack of a suit against Wells Fargo might indicate a second round of lawsuits to come later this week.

But why is the government remaining silent about this? The complete lack of transparency does not make any sense. If there are more lawsuits coming, the government should indicate this. It doesn't have to name the offenders but it could at least let investors and markets know that more is coming. If no more lawsuits are coming out of the FHFA, this should also be explained by the government. What's the value in keeping everyone guessing?

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