Banker lived it up in bank-owned Malibu house

SAN FRANCISCO (Reuters) - A community watchdog group expressed outrage and Wells Fargo said it was launching an investigation after a newspaper reported that a senior exec threw lavish parties at a beachfront Malibu house owned by the bank.

"This is the ultimate example of dancing on the shattered dreams of the millions of Americans who've lost their homes. They should be ashamed of themselves," said Association of Community Organizations for Reform Now spokesman Scott Levenson.

According to the Los Angeles Times, residents said Cheronda Guyton, a Wells Fargo senior vice president responsible for foreclosed commercial properties, spent weekends in the Malibu Colony house throwing "eye-catching" parties, one of which had guests arriving in a yacht.

Wells Fargo said in a statement it took possession of the Southern California property in May and withheld it from the market for an agreed-upon period of time, adding that company policy prohibits personal use of properties held by the bank.