|United Press International|
The mortgages were insured by the
The lawsuit filed by federal authorities in
"Yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance," Bharara said.
Prosecutors also said
The bonus system "was an accelerant to a fire already burning," the federal office said, stating, "quality [loans] repeatedly took a back seat to quantity."
Beyond that, prosecutors said Well Fargo knew of the rising concern over mortgages, but failed to report on it to regulators until they were forced to do so with a subpoena.
With the lawsuit,
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