Power Breakfast: Newnan developer sues Wells Fargo, Kia, transit, Atlantic Station, BP, Goldman, financial reform

Newnan developer Stan Thomas has sued Wells Fargo Bank for $2.8 billion, claiming the bank failed to make good on a promise to lend him $500 million to continue projects across the country, AJC staffer Rachel Tobin Ramos reports.

The lawsuit is just one part of the legal disputes between Thomas and Wells Fargo. Also last month, Thomas sued Wells Fargo for defamation over a real estate listing that he claims was inaccurate regarding a San Antonio shopping center, Ramos reports.

And this week, Wells Fargo sued Thomas for defaulting on four loans for more than $119 million to develop shopping centers. The loans were made in 2007 and 2008 by Wells Fargo’s merger partner, Wachovia Bank.

The suits are fallout from the financial crisis that caught Thomas in the middle of billions of dollars worth of large projects nationwide that needed financing to continue, Ramos reports.

In the suit over the loans Thomas says were promised but never materialized, the developer claims Wells Fargo breached its contract and seeks $2.8 billion in damages.

A Charlotte-based Wells Fargo spokeswoman, Jaime Dexter, said the suit has “no merit,” Ramos reports.

Also in the AJC:

In other media:

6 comments Add your comment

Tillie the Alltime Teller

July 16th, 2010
8:07 am

I had a 40 year relationship with Wachovia and its predecessor banks. Last week, I moved my accounts to BB&T. My “personal” banker at Wachovia changed every 3 months. Employee turnover there is rampant. They introduced new fees and reduced services and made the relationship very ordinary. The bank is caught up in scandal and misdeeds and is not a very good corporate citizen anymore. What a shame that the First Union folks turned this once-great bank into what it is today. They acted like they won’t miss the dozen accounts I closed. Maybe not, and I won’t miss dealing with a bank with ethical shortcomings.

Lorraine

July 16th, 2010
8:18 am

Tillie, I agree . . . Wells Fargo is TERRIBLE and customer service does not exist there.

LJ

July 17th, 2010
1:25 am

BBT is a horrible bank too. Just wait, they will steal your money and say it’s your fault.

Tillie

July 17th, 2010
5:19 pm

Haywood, money laundering is scandalous – as is poor grammar.

Darrell Walters

July 22nd, 2010
5:09 pm

I’m following this one closely. Stan Thomas has done a lot of good for Newnan but certainly got caught in the financial crisis.

Darrell Walters, Integrity Mortgage Funding – Newnan mortgages

Bonnie Schofield

September 15th, 2010
10:36 pm

I have recently opened an account with a county-wide credit union, which I am very happy with. I am closing my WF account this month and my son is closing his account also. They have the worst customer service in the industry. After trying to modify my mortgage for 13 months, I have had to hire an attorney. Now hopefully, I’ll see some action!