Your TARP dollars at work

By Michelle Malkin  •  July 13, 2009 03:23 PM

Reader Stanley e-mails that Wells Fargo is suing itself, and has hired two different law firms to do so.

Details from Dow Jones columnist Al Lewis:

You can’t expect a bank that is dumb enough to sue itself to know why it is suing itself.

Yet I could not resist asking Wells Fargo Bank NA why it filed a civil complaint against itself in a mortgage foreclosure case in Hillsborough County, Fla.

“Due to state foreclosure laws, lenders are obligated to name and notify subordinate lien holders,” said Wells Fargo spokesman Kevin Waetke.

Being a taxpayer-subsidized, too-big-to-fail institution, it’s possible that one of the few ways for Wells Fargo & Co. (WFC: 24.21, 1.3, 5.67%) to know what it is doing is to notify itself with a court filing.

In this particular case, Wells Fargo holds the first and second mortgages on a condominium, according to Sarasota, Fla., attorney Dan McKillop, who represents the condo owner.

As holder of the first, Wells Fargo is suing all other lien holders, including the holder of the second, which is itself.

Posted in: Subprime crisis

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Comments


  1. #744024
    On July 13th, 2009 at 3:27 pm, tonyr951 said:

    It just keeps getting better and better

  2. #744033
    On July 13th, 2009 at 3:32 pm, Freddy said:

    To big to fail means to big to manage!

  3. #744039
    On July 13th, 2009 at 3:37 pm, shooter said:

    Ahhh, that’s my bank, at it’s best.

    I better go recheck my balances and statements.

  4. #744040
    On July 13th, 2009 at 3:39 pm, J S Ragman said:

    I would expect TARP dollars to go to Wells Fargo to pay itself damages caused by itself.

    They may be onto something here.

  5. #744051
    On July 13th, 2009 at 3:52 pm, spaceycakes said:

    “Oh-o, the Wells Fargo Wagon is-a
    comin’ down the street
    oh please let it be for me….!”

  6. #744060
    On July 13th, 2009 at 3:58 pm, Flyoverman said:

    Executive bonus announcement in 7, 6, 5, 4…..

  7. #744087
    On July 13th, 2009 at 4:11 pm, tre said:

    !!!!TOO MANY LAWYERS!!!!

  8. #744097
    On July 13th, 2009 at 4:17 pm, hawkeye54 said:

    On July 13th, 2009 at 3:37 pm, shooter said:
    Ahhh, that’s my bank, at it’s best.

    Hah! In my neck of the woods, WF had a brand spankin’ new building erected for a new branch, then within 2 years, decided to abandon it in favor of a less expensive to operate supermarket mini-branch in the store down the street from which its reps often annoyed shoppers.

    Two years later, it decided it really did nead a stand alone branch office, and had another brand spankin’ new building erected one block down the street from its previous building which is now shared by two fast food outlets.

    With decision making like that, I figured it was a bank to avoid.

  9. #744098
    On July 13th, 2009 at 4:17 pm, Rogue Cheddar said:

    Ha! Ha! And people think I’m nuts!
    Oh but you are!
    No I’m not!
    Yes you are!
    Shut up!
    Make me!
    (scuffle! slap! kerpow!)

  10. #744106
    On July 13th, 2009 at 4:23 pm, happyscrapper said:

    I see nothing wrong with suing oneself. And I’m not a paranoid schizophrenic as everyone thinks I am! And neither am I, and neither am I!

  11. #744125
    On July 13th, 2009 at 4:34 pm, Savage24 said:

    The American taxpayer,” a fool and his money is soon parted.”

  12. #744127
    On July 13th, 2009 at 4:35 pm, happyscrapper said:

    Off topic, but headline on Drudge Report:
    Obama to join Fox broadcast booth for All-Star Game
    I assume he will have his teleprompter with him! I am so sick of his ego trips! And doesn’t he have better things to do? You know, like running the country? If I thought all these distractions would keep him from destroying us, I would say, go ahead. But he continues to rip the heart out of America as he plays President. Yeah, he is having a blast, riding in that cool airplane, seeing the world, basking in the adulation of his flock, partying with his cronies, spending $8,000 on his wife’s purses, flying in pizzas from across the country…what have I left out? As for the All Star Game, now I have a great reason NOT to watch it. Geez!!!!

  13. #744129
    On July 13th, 2009 at 4:37 pm, AlohaGuy said:

    Obama to join Fox broadcast booth for All-Star Game

    It will turn into a plug for Sotomayor.

  14. #744141
    On July 13th, 2009 at 4:42 pm, happyscrapper said:

    It will turn into a plug for Sotomayor.

    Or Crap and Raid, or Heath Scare, or open borders legislation. Or all of the above. I won’t be watching, but I’m sure we will hear all about it.

  15. #744165
    On July 13th, 2009 at 4:56 pm, nlebou said:

    Folks…if we don’t stop electing lawyers to public office things will never change.

  16. #744190
    On July 13th, 2009 at 5:18 pm, Ron said:

    This is why there are lawyers. Hence the riddle, “What do you call 100 dead lawyers? A good start.”

  17. #744204
    On July 13th, 2009 at 5:30 pm, Rip Ford said:

    This story makes me think of Black Bart, the Old West outlaw who was fond of robbing the Wells Fargo stagecoach. A poem he left behind on one robbery seems relevant today…

    “I’ve labored long and hard for bread,
    For honor and for riches
    But on my corns too long you’ve tread,
    You fine-haired sons-of-bitches.
    Black Bart, the P o 8″

  18. #744213
    On July 13th, 2009 at 5:36 pm, zorro said:

    Wells Fargo is suing itself

    Only in the surreal world of Obama…

  19. #744238
    On July 13th, 2009 at 5:53 pm, sonofdy said:

    I am sure Red State Skeptic will inform us how this is a racist thread because of one post on facebook.

  20. #744283
    On July 13th, 2009 at 6:53 pm, teachem2 said:

    You just can’t make this stuff up. I feel like I’m living in Bizarro World.

  21. #744289
    On July 13th, 2009 at 7:13 pm, Pasadena Phil said:

    Why am I not surprised? After all, according to Pelosi, Cap and Trade is about “jobs, jobs and more jobs”. According to Pelosi, the trillion-dollar defict budget marked “the end of deficit spending”.

    When entering this world of space aliens, check logic and common sense at the door. You won’t be needing it.

  22. #744300
    On July 13th, 2009 at 7:29 pm, cheapseat said:

    PASADENA AND ALOHA, as usual cogent and on point. if allah spent half as much time in the oval office as he spends in air force 1, he would not only have cured global warming, but aids and cancer as well. but it’s for his kids, and through them a projection to all the underpriviledged kids of the world. AND WORLD PEACE!

  23. #744305
    On July 13th, 2009 at 7:35 pm, love2rumba said:

    WTF?!

  24. #744359
    On July 13th, 2009 at 8:38 pm, Jeff said:

    Well, look at it this way…While he’s in St. Louis; he won’t have to fly that special pizza to the White House.

  25. #744364
    On July 13th, 2009 at 8:53 pm, Average Joe said:

    This is an obscure but legitimate legal process known as lawsuit masturbation.

  26. #744365
    On July 13th, 2009 at 8:53 pm, swede said:

    I’m thinking this is genious. When you sue yourself, if you lose you win! By extension of course if you win, you lose. So they’ll need to get top liberal lawyers on the case to insure its ultimate defeat so they can win.

    In the immortal words of Michael Palin in the Monty Python surgeon sketch: “My brain hurts!!!”

  27. #744366
    On July 13th, 2009 at 8:54 pm, Pasadena Phil said:

    About Wells Fargo suing itself: can’t be worse than talking to myself. After all, when you are smart as I am, I better listen. Sometimes I tell myself things that even I didn’t know. Maybe Wells Fargo searched deep into its soul and found something so disturbing that they just had to sue themselves.

    What a world.

  28. #744372
    On July 13th, 2009 at 8:59 pm, ArizonaNeanderthal said:

    Al Franken is in the Senate so why should anything else make sense?

    I was not born on this planet so I am not responsible-my parent bought me from Space Traders AND I WANT TO GO BACK.

    Wells Fargo is my bank–how is Chase doing?


    Don’t TARP me bro, don’t TARP me.

  29. #744373
    On July 13th, 2009 at 9:01 pm, Pasadena Phil said:

    Chase bought Washington Mutual, the poster-child of toxic asset banks. I suspect they could be doing better.

  30. #744378
    On July 13th, 2009 at 9:05 pm, Common Sense said:

    This confirms that we are definitely down the rabbit hole.

  31. #744384
    On July 13th, 2009 at 9:18 pm, swede said:

    Common Sense said:
    This confirms that we are definitely down the rabbit hole.

    Alice: I’ve lost my way, which way shall I go?

    Cheshire Cat: That depends a great deal on where you wish to go.

    Alice: I don’t really know.

    Cheshire Cat: Then it doesn’t really matter which way you go, does it.

    Obama Administration in a nutshell.

  32. #744473
    On July 14th, 2009 at 1:48 am, infidel4life said:

    Perhaps the Obama administration can impeach itself.

  33. #744556
    On July 14th, 2009 at 9:02 am, nail49 said:

    Perhaps the Obama administration can impeach itself.

    infidel4life: Never happen, because they certainly won’t investigate themselves!

  34. #744839
    On July 14th, 2009 at 12:58 pm, SHoward said:

    There may actually be a logical reason for this, although one that should never have been allowed to happen.

    If Wells is the 1st and 2nd lienholder, it means they made a sub-prime loan. That means the buyer probably wasn’t good for it anyway. Remember, many banks were practically forced into this nonsense through legal efforts from the left. The second loan may have been made through a subsidiary, or just a “line of credit” from the same entity.

    Wells most likely decidied it needed to take action against the buyer, and the difficult choice is filing any suit, because both entities probably cannot sue at the same time, and in a case like this the primary lien holder must sue everyone else, even if one of the other parties is itself.

    Again, the idiocy here is that through legal pushing and shoving, the bank made this loan to begin with to a deadbeat. Now we get to watch an odd comedy unfold.

    BTW: Wells Fargo is considered one of the best home mortgage banks in the country.

  35. #745210
    On July 14th, 2009 at 6:00 pm, Blackstone said:

    So who’s winning?

  36. #745361
    On July 14th, 2009 at 11:13 pm, WarEagle82 said:

    Did anyone see this Marxist nonsense at Drudge? http://www.reuters.com/article/marketsNews/idUSN1429265720090714?rpc=77

    Obama is going to nationalize every house in America! You may or may not pay your mortgage. Either way, before the end of his first term, you won’t own the property!

    This is insanity! He is going to give us free cars. He is going to pay our rent. He is going to pay our mortgage. He is going to give us health care. Shucks, I might as well quit now and save my employer the trouble of laying me off with a big severance package!

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