In a display of post mortgage fraud brilliance, Wells Fargo dove into the gutter of opening 2 million fake checking accounts. CHECKING ACCOUNTS for chrissake ! 5300 Main St branch bankers are being fired and polishing their resumes for Wall St. Since checking accounts don't really make any money, the fraud involved transferring existing money into the ghost account then charging NSF fees when the original account became overdrawn. Warren Buffet's favorite bank. Out here in Ca, the long lines at Wells are loaded with newly banked Latinos, marketing to a huge demographic. So of course, they trained staff how to rip them off. Mamas don't let your babies grow up to be bankers.
Federal Reserve charity will cover the 185 million dollar fine many times over. Think about that for a second: the Fed pays interest on reserves by electronically marking up the balance of Wells Fargo's account while Wells is ripping off the checking accounts of their customers, only to return the IOER back to the government in the form of a fine ! The Fed needs to consider raising IOER in case more widespread scumbaggery is uncovered.
Our prescription for a steeper curve could have avoided the need for this.