Class Actions against 4 large banks for alleged PPP loan practices

[DonaldsRump]

Class action lawsuits were just filed against Bank of America, JPMorgan, Wells Fargo, and US Bank for prioritizing applications for high PPP loans over small ones.

https://apnews.com/34540cf5984346b5905284438057ef50

[bucolic_frolic]

1. They need to add the Bank of Mnuchin

And stop calling them loans. "Forgivable loans" is an oxymoron. May as well just dispense with the Kabuki and call them corporate handouts.

[Amishman]

9. they only get forgiven if 75%+ is spent on payroll

and the remainder for a select category of expenses, such as mortgage interest, rent, or utilities.

The PPP loans are essential and need to be continued / expanded.

[bucolic_frolic]

11. So they're paying workers $1200 on one hand, and paying companies for payroll on the other

I looked at the SBA loan app, there was no reason attached to forgiveness. There was even an eBay checkoff box on there just provide the company name, number of employees, and certify sexual material was less than 10% I think it was, of revenues. Maybe there was more fine print, but it really was a rush job.

[Amishman]

12. That is just the loan, after 12 weeks they must submit a separate request with documentation

in order to have it converted to a grant and forgiven. That portion isn't up yet, the bank I am currently working for is scrambling to get clarification on what documentation is and isn't acceptable so they can be ready when the 12 weeks is up.

Without submitting the grant conversion request (and it being approved) it is a 6 month loan at a half a percent interest. They can then request another extension out to two years on repayment at 4% interest.

[rickyhall]

2. Aren't those the same banks that fucked us in 2008?

I think so...

[Uben]

3. Fine them billions!

Large banks and financial institutions are the biggest crooks in the nation. They've been sucking the government teat for too long!

[AllaN01Bear]

4. ah yes, the terrible 4 always.

[KS Toronado]

5. Looks like again

that they're to "BIG" to fail....

[notKeith]

6. This is a non-ending repeating circle.

Here's the thing - if John Stumpf had gone to prison for his crimes - CEO of fake Wells Fargo accounts, and looking away while fluffing up stock prices - THEN culture from the top down would have changed.
But noooooooo - they slapped his wrist, and he still walked away a millionaire.
Wells Fargo has since gone thru a couple CEOs.
Until CEOs are personally liable for the behavior of their graft machines, NOTHING is going to change.

[jaxexpat]

10. How about taxing the profits at 100%

Identify the investors and appropriate their profit on investments in any company found guilty of malfeasance. What used to be interest income on our savings is now the banks' wagering fund. When they go bust (like all gamblers) it's an attachment on our nation's future which bails them out. Snakes gotta slither, gamblers gotta gamble, kangaroos gotta hop...…...you get the picture.

[ecstatic]

7. Wells Fargo never does the right thing. Period.

I guess that's how they've managed to stay in business?

[shockey80]

8. About a month ago I posted , Watch the banks. Some people here gave me grief.

You can never, ever trust the banks. No, I am not calling for people to take all their money out of the banks. I'm just saying, pay attention to the banks. You can't trust those fuckers.

[Baked Potato]

13. I wonder how much is the take for servicing these loans?

This crap will need a whole investigation some day.

[DonaldsRump]

14. A boatload

It's in the complaints. For example, this is from the BoA complaint:

24. Specifically, BofA was entitled under the PPP to receive origination fees of 5% on loans up to $350,000; 3% on loans between $350,000 and $2 million; and 1% on loans between $2 million and $10 million.12 That means that BofA could make up to $17,500 for processing loans up to $350,000; up to $60,000 for processing loans between $350,000 and $2 million; and up to $100,000 for processing loans between $2 million and $10 million.


https://spaces.hightail.com/receive/kJhIt2f0iC/fi-5b5b744d-2fdb-46d3-a96d-42f3476493b2/fv-a206be3f-dd70-4480-8864-bd92b8d282e1/2020-04-19%20BofA%20CA%20Complaint%20%5BFILED%5D.pdf

[Baked Potato]

15. Dang... thanks. That's a lot of incentives. Just bad.

[WillowRalph]

16. Publish searchable a list on a website?

Name of lending institution
Name of company
Address of company corporate office on loan application
State of company's corporate registration
Amount of loan
Company offices as registered with the state of incorporation

Just a thought......