â¿¿ The Justice Department recently accused your bank of mortgage fraud. What's your response?
We think they got that wrong. Our FHA lending activity and servicing, we've done it in good faith, we have met the requirements that were laid out. The proof was really in the results â¿¿ our portfolio performs better than others. We have a number of defenses. This is one we're going to take on.
â¿¿ Some people on your board have what seem like close ties to your bank. Two have immediate relatives who work there, and not as tellers but as people who make nearly $300,000 or $800,000 a year. A board is supposed to be independent. How do you defend that? (Phil Quigley, a board member and the former lead director, has a son who works at Wells Fargo Securities. Cynthia Milligan, another board member, has a brother who works at the bank as a wealth management adviser.)
We have wonderful ethnic, geographic, gender and experiential diversity on our board. Five of our board members are persons of color, five are women, and they come to us with different disciplines and different geographies. In the case of Phil Quigley, he has reached his retirement age and he will not stand for re-election. His son works in one of our groups in southern California and he didn't even know his son had applied for a job until he got it. And I don't recall if Cynthia Milligan's brother is now retired or not, but those are the only two (board) members that I know that have family members (at the bank) and both of them enjoy very high re-election numbers. If you look at the SEC and New York Stock Exchange independence rules, they pass all of those. I never even hear it as an issue.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV