Friday, August 30, 2013

Wells Fargo: Bailouts, Record Profits, and Layoffs

Wells Fargo bank announced last week that it will be laying off 2300 workers due to rising mortgage interest rates that have slowed its mortgage loan and refinancing operations.

This is the same Wells Fargo that received $36 billion in bailout money from the US government to keep the bank afloat during the financial crisis -- a crisis created by the actions of said bank.

This is the same bank that just reported record quarterly net income of $5.5 billion and whose stock price is up 24% for the year. But apparently the bank is not doing well enough financially, so it must lay off 2300 workers who are putting a crimp in their bottom line.

In spite of the fact that the bank owes its existence to US taxpayers, and is facing law suits for years of fraudulent mortgage activity, it sees no obligation to retain 2300 humans who work for the company; instead they are regarded as economic liabilities that reduce profits. Thus they can be discarded to join the millions of other unemployed and underemployed workers.

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