Adding insult to injury

Posted by Rob Minton
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One of the tastes that will forever be left in the mouths of the people who lived during this "Great Recession" here in the United States is that of greediness of the nation's financial institutions. Deserved or not, banks will be looked at as the money-hungry culprits behind the real estate collapse and subsequent meltdown of the entire economy.

And now one of the nation's leading mortgage lenders has even more egg on their face.

In case you haven't heard, Wells Fargo recently fired one of its executives for allegedly holding parties in a $12 million home in Malibu, Calif., that was owned by the bank. The bank took possession of the home after the home owners, who had been victims of Bernie Madoff's Ponzi scheme, could no longer pay the mortgage.

It's almost unbelievable, isn't it? A bank that has accepted $25 billion in government bailout funds, which already was catching heat for planning lavish company parties in Vegas, has a senior vice president hosting lavish parties at a bank-owned home that had been given up by victims of Madoff who could no longer afford it.

According to neighbors in Malibu, Cheronda Guyton used the 3,800-square-foot home on the weekends to entertain, including one event during which guests arrived by yacht. If that's not a symbol of over-indulgence, I don't know what is.

Think about it from the home owners' perspective. You've been wiped out by a crook to the point where you have to give up your home to the bank. Then a senior vice president at that bank is hosting parties in YOUR house, at least one of which that included a yacht. Ouch.

This whole incident reveals the perception that many U.S. citizens will have of banks for a long time: that they're greedy, dishonest corporations that put the average homeowner on the street while their own executives are out enjoying the good life.

I understand that banks have to foreclose on homes. I understand that for the sake of our whole financial system, they had to accept federal bailout money. I understand that they will still run their companies as they see fit.

But when hundreds of thousands of people across the country have to worry about losing their homes, these banks have got to do a better job of not rubbing it in.

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Is there more to the story? I am wondering if they were hosting the party to attract the clientele that could possibly afford to purchase the bank foreclosed property. If so, that would make sense. If not, and it was just a personal party for employees or friends, yes, what a slap in the face. It if was in fact a 12 million dollar property, this is exactly would a potential purchaser would expect.