Sunday, April 27, 2008

Wachovia Gets Fined: Yikes or no yikes?

News of a big fine levied against Wachovia may, or may not, satisfy those who lost money thanks to the bank turning a blind eye to activity other banks said was clearly fraudulent (as blogged here a while back).

The word 'Yikes' is in play here because of its use in a Wachovia email that came to light. Here's how the NYT reported it:

“YIKES!!!!” wrote one Wachovia executive in 2005, warning colleagues that an account used by telemarketers had drawn 4,500 complaints. “DOUBLE YIKES!!!!” But Wachovia continued processing fraudulent transactions for that account and others."

Why? Because the fraudsters paid, presumably with money stolen from victims, huge fees to Wachovia so that the money would keep flowing. And you thought the sub-prime mortgage market was the only thing your bank's cupidity was screwing up.

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