Facing the rising tide of dissent over purportedly racist lending practices this summer (2005), Wells Fargo head Richard Kovacevich told Bloomberg news: “We are responsible lenders, and we price for risk; we don’t price for race. We don’t do predatory lending. And the American consumer is better off that we take that risk. We just have to get paid for it.”
Putting that in perspective, facing charges of predatory lending at Household International, then CEO William F. Aldinger told employees and the world “We are not predatory lenders.” Two days later predatory lending charges made headlines as a $484 million (USD) nationwide lawsuit against Household International was announced by State Attorney’s General.
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Although not yet charged with a crime, does this article about Ken Lay sound like Aldinger at Household International?
HOUSTON (AP) - Enron founder Kenneth Lay battled with prosecutors in his third day of cross-examination, saying he was too busy to investigate the piles of warnings employees had submitted about accounting integrity.
Lay says he didn’t have what he called the “luxury” of hindsight when in the middle of a battle.
Warnings flowed in to Lay in the fall of 2001. He’s now on trial for fraud and conspiracy.
Prosecutors say Lay ignored warnings of accounting impropriety and financial doom after he took over from then-chief executive Jeffrey Skilling, who is also now on trial.
Lay also says that he and his family maintained their extravagant lifestyle in 2001 despite tapping Enron for more than 70 million dollars in loans to repay personal debt. He says they were living the American dream, and it was hard to stop.