Ever wondered what non-sex crime thing you'd have to do to stick out as an unignorable problem employee inside today's scandal-plagued Wells Fargo?
Wells Fargo & Co. suspended two employees in its community lending and investment unit amid a U.S. inquiry into the bank’s purchase of low-income housing tax credits, according to people familiar with the matter.
Rick Davis, a senior vice president, and Robert Klixbull, a vice president, were suspended, the people said. Klixbull reports to Davis, and both work under Michael Lavine, who heads low-income housing tax credit equity within Wells Fargo’s community lending and investment unit.
Hey, at least they weren't upselling or opening shadow accounts in the names of their clients...right?
The Justice Department is looking into whether Wells Fargo and other banks colluded with developers to lower bids for low-income housing tax credits. The credits are part of a program created in 1986 that encourages affordable housing developments. The greater the spread between the price of the tax credit and its face value, the higher the return to the investor -- in this case, the banks.
If true, this was a very dumb thing to do. Using shady developers of public housing to manipulate the payout on a government tax credit meant to house the neediest Americans is an unconscionable scheme to undertake at Wells Fargo, America's most scrutinized bank.
This is the kind of thing you can pull off at BofA or Citi, you clowns. No one is watching them.