Wells Fargo is slapped with Fed’s biggest fine
Wells Fargo & Co. has agreed to pay $85 million to settle civil charges that it falsified loan documents and pushed borrowers toward subprime mortgages with higher interest rates during the housing boom.
The fine is the largest ever imposed by the Federal Reserve in a consumer-enforcement case, the central bank said Wednesday.
Wells Fargo, the nation’s largest mortgage lender, neither admitted nor denied wrongdoing as part of the settlement. The bank agreed to compensate borrowers who were steered into higher-priced loans or whose incomes were exaggerated.
The Fed said a unit of Wells Fargo inflated borrowers’ incomes on loan documents to qualify for mortgages they otherwise couldn’t afford from 2004 until 2008. Sales personnel also pushed borrowers toward higher-interest subprime loans, even though they were eligible for lower-interest mortgages, the central bank said.
PayPal helps power eBay past 2Q expectations
SAN FRANCISCO — EBay Inc.’s second-quarter results beat analyst expectations Tuesday with growth in its PayPal online payment service and marketplace business, although profit fell 31 percent on charges from its recent purchase of e-commerce retail site operator GSI Commerce.
For the quarter that ended June 30, eBay earned $283.4 million, or 22 cents per share, compared with $412 million, or 31 cents per share, in the year-ago quarter.
The company finished its acquisition of GSI in June in a deal valued at $2.4 billion. As a result, its operating expenses for the quarter rose 32 percent to $1.5 billion.
Excluding one-time items, the company earned 48 cents per share, 2 cents more than analysts expected.
Trader who blamed affair gets prison
NEW YORK — A New York hedge fund trader who says her boss manipulated her into engaging in insider trading during their 20-year affair has been sentenced to 2 1/2 years in prison.