Wells Fargo Banker Parties it Up in House that Defies Housing Bubble Logic

We all know the Goldman rats know how to party but I must admit here that I wasn't expecting this out of a Wells Fargo banker.

Wells Fargo has said it had fired an employee who held a series of parties at a Malibu mansion seized by the bank from a couple who were swindled in the Bernard Madoff fraud.

"Our investigation concluded a single team member was responsible for violating our company policies. As a result, employment of this individual has been terminated," a statement from the bank said.

"We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members."

Earlier reports said local residents had seen the employee, identified as Cheronda Guyton, spending several weekends at the 12-million-dollar home during the summer after it was taken over by the bank.

Guyton, a senior vice president responsible for commercial foreclosed properties, reportedly held several parties at the mansion, including one at which guests arrived from an offshore yacht.


You go, Cheronda.

Ms Guyton's LinkedIn profile reveals she's been with WFC since 1992, at which time yours truly was in the 6th grade. I guess the lure of partying in a Malibu Barbie dreamhouse can trump the sensibilities of even the most seasoned banker.

So, uh, why did Wells Fargo take the house off the market in the first place? I can imagine the $12 million price tag may have had something to do with that. Or maybe it was because they knew the property was in better hands with their Senior VP of CRE?! (LOL) I even read an article that said Guyton is being "villified" in the media and may have simply been performing her fiduciary duty, tending to a bank-owned property with no buyers lined up. Um excuse me, what part of fiduciary duty involves having yachts drop off your friends for huge parties? Just wondering.

Even better, some are calling "racism!", saying that Guyton is being unfairly targeted because of her skin color. OH PLEASE, now that's racist.

There was no legal reason to squat at the property. That goes for anyone, brown, red, yellow, orange, green, I don't give a shit. If Wells Fargo didn't agree, they wouldn't have fired her Monday.

The latest phone number I could find for Ms Guyton goes back to 2003 but in case you want to send hate mail [Legal disclaimer: Jr Deputy Accountant would never ever encourage this sort of behavior, of course], her last known address (besides the Malibu property that wasn't hers) is as follows:

6260 3RD ST

Cheronda and her husband Andrew (who also goes by Sidney, it appears) owned the property as of January 2007 but we can't find anything since; maybe Wells Fargo foreclosed on that as well? Hopefully if she is no longer at that location the USPS will be kind enough to forward her hate mail [that we note here again we don't encourage].

Enough with Guyton, can someone please explain to me how the property in question went from $3 million to $12 million in JULY of 2009?! 07/09! Anyone remember back that far? Not exactly a time ripe for skyrocketing home values. The property at 23360 Malibu Colony Rd was less than a steal for Wells Fargo, don't you think? Imagine, with bizarre, over-inflated property values for bank-owned cribs like this on their books, Wells Fargo can accomplish anything, including making it appear as though they are actually solvent!

When in doubt, look at the fucking chart:

The place is up 236.1% for the year! THIS year. In the 5 months since the sale, the property has risen a paltry 185.0%. With numbers like that, homicidal maniac Alan Greenspan is probably creaming his pants just thinking about the pure unadulterated housing bubbliciousness. As FASB might say, FUCK FAIR VALUE, BITCHES! Disgusting. And only slightly (read: painfully) suspicious.


The Realtor for the house told the Times that Wells Fargo wouldn't show the house to potential buyers either. The bank stated that it had some kind of agreement with the prior owner to keep it off the market for "a period of time."

Maybe there was some sort of "we'll keep it off of the market until you find a sucker willing to buy this bitch ass house that was marked up $9 million in 8 months in the middle of a housing crisis and massive debt deflation" deal at work here. Just sayin.

In a final twist of irony, it appears as though Ms Guyton's $900,000 property in LA (HER actual property, not the sweet Malibu joint she was squatting in with her husband) does not hold a Wells Fargo mortgage. Try Downey Savings. Oh that's awesome.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

What's more lame than partying in someone's foreclosed multi-million dollar home? Encouraging harassment! yayyy! You win!


thanks for the reminder. YAY disclaimers!


OldSouth said...

Good of you to point out the more serious, shall we say felonious, event: The inflated value of the house, for the purposes of cooking the bank's books.

Ya think if I valued my little three bedroom ranch here in the country at say, $3.5 million, had it accepted as collateral, took the loan, and then failed to repay, that I might someday be criminally liable for fraud?

How come they get to do this, and I don't?

Anonymous said...

white trash and PROUD of it A loan well made is half collected. Also, kinda tough to securitize a bunch of loans made to crackers with wobbly boxes. I lived in one waaaaaaayyyy back in the day and it wasn't bad. Had the General Lee parked outside but it was bitch keeping all the pine sap off of it.

Anonymous said...

mortgage lending STANDARDS - they are BACK, Bitches!

"Good borrowers with one or two blemishes on their credit are being denied credit," said Lawrence Yun, chief economist for the National Association of Realtors.

"We think the new rules are appalling," said the NAHB's Howard. "Only the wealthy will be able to buy homes at low interest cost."

Tough shit, assholes - welcome to my fucking world. Go back to selling used fucking cars at a buy here - pay here car lot where you belong. Truth be known, I LOVE telling an asshole deadbeat "NO" when they apply for a loan that they haven't a Chinaman's chance in hell of repaying. Lights a flame in my thorny little black heart. The BBQ / outdoor fire pit is completed!!! Yay!!!!

Anonymous said...

"For the first time in 100 years," said Howard, "the government is discouraging you. It's saying 'We intend to make it more difficult for you and your kids to buy homes.'"

No they are not - they are FINALLY doing the prudent, adult thing and the cry-baby, fruity, softy, fucked-up, unwashed housing-hawker masses are mouthing off like toddlers. Cry me a river, assholes.

FYI, the bodies continue to be thrown under the bus over at www.stopfraud.gov - the wheels of justice turn slowly but they do turn. I'm looking for these sharks to really go into a feeding frenzy as the election draws near next year. They're gonna be slashing and biting at each other BIG TIME (my O-pinion - that and $4 will get you a Starbucks). TBW was the biggest independent mortgage lender in the COUNTRY a few short years ago but oh how the mighty have fallen, JDA.

Anonymous said...

Sharks often bite each other during feeding frenzies, and while the bitten sharks frequently ignore their injuries, they typically attract their hungry fellows' attention. So if a shark's been bit, you can bet other sharks in the vicinity have noticed, too. Get in a good mouthful while you can!

Isn't Discovery Channel great?

Anonymous said...

‘No Coincidence’
“The senior executive’s location in northern Virginia was no coincidence,” prosecutors said in court papers. “He was a former senior executive at Freddie Mac, and Freddie Mac was critical to TBW’s business as a buyer of TBW-originated mortgage loans.”

Ain't that a coinky-dink????

Have a little faith in me, have a little faith in me....

Anonymous said...
Anonymous said...

The former CEO of what used to be one of the largest mortgage companies was convicted today of a $3 billion fraud, the Associated Press reports.

the wheels of justice turn ever so slowly

Another Joe Cocker song that gets the blood going on mile 2 - and in keeping with the housing bubble theme on this thread - <a href="http://www.youtube.com/watch?v=2CQezGGZvHA>grab a pen and paper and take notes Bono</a>

Anonymous said...

Goddamned if I don't <3 YouTube!

Anonymous said...