Things must be ugly if the bank has ignored multiple requests for information about mortgage backed securities that went bad. How is it that the banks can even get this far along without responding to the SEC? They certainly enjoy a privileged position within certain circles, seemingly above the law. While the SEC is now forcing the issue, it remains to be seen how this will proceed.
I wonder how easily it would be for a private individual to try this approach of ignoring, then becoming indignant when called out.
U.S. securities regulators accused Wells Fargo & Co on Friday of repeatedly ignoring its subpoenas for documents in connection with a probe into the bank's $60 billion sale of mortgage-backed securities.
The Securities and Exchange Commission's filing in a San Francisco federal court seeks to compel the fourth largest U.S. bank to hand over documents. The SEC said it has issued several subpoenas since September.
A Wells Fargo spokeswoman called the SEC's action "inappropriate" and pledged the bank would "vigorously defend itself in court" against the SEC action.
As a side note, someone at the SEC needs to know that this might not help their job opportunities when they flip back to private industry. This embarrassing moment won't be forgotten by Big Finance.