The article implied that Wells had loaned the previous owners money against their Madaff “assets” as well as the mortgage on their house- their only hard asset, after the Madoff ponzi collapse was their house.
Because the defaulted debts were greater than the balance of the debt on the house, doesn’t mean the house doesn’t get foreclosed.
If nothing else – this VP created a PR nightmare for the bank. It’s one thing to say “occupy the house to protect the asset”. It’s another to have high profile parties in the house with yachts, etc… Bad image for the bank.
