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Thread: Wells Fargo hit with $135 million in civil penalties

  1. #1
    It was aliens raisedbywolves's Avatar
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    Wells Fargo hit with $135 million in civil penalties

    http://fortune.com/2016/09/12/wells-...rrie-tolstedt/

    Wells Fargo Exec Who Headed Phony Accounts Unit Collected $125 Million

    Wells Fargo & Co?s WFC -0.60% ?sandbagger?-in-chief is leaving the giant bank with an enormous pay day?$124.6 million.

    In fact, despite beefed-up ?clawback? provisions instituted by the bank shortly after the financial crisis, and the recent revelations of massive misconduct, it does not appear that Wells Fargo is requiring Carrie Tolstedt, the Wells Fargo executive who was in charge of the unit where employees opened more than 2 million largely unauthorized customer accounts?a seemingly routine practice that employees internally referred to as ?sandbagging??to give back any of her nine-figure pay.
    http://www.usatoday.com/story/money/...ions/90139724/

    Wells Fargo scam latest in a string of infractions

    $185 million hit in civil penalties for secretly opening millions of accounts without customers' permission is just the latest regulatory black eye for the bank.

    Wells Fargo, the biggest U.S. bank by stock market value, Thursday agreed to pay $100 million in restitution to victims to the Consumer Financial Protection Bureau fund, as well as a $35 million penalty to the Office of the Comptroller of the Currency and $50 million to the city and county of Los Angeles. The bank agreed to pay the fine in connection to actions allegedly committed by more about 5,300 to open accounts unbeknownst to customers and racking up fees as a result.
    But we don't need to break up the banks, and on a related note, we don't need to bring back the Glass-Steagall Act. The banks will police themselves.

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    What do you care? Boston Babe 73's Avatar
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    Fucking incredible
    Quote Originally Posted by Miller22 View Post
    I thought the exact same thing. Poor Brennen Tammons.
    Oh well, back to gum.
    ....or exchanging Puke's wang for spicy nuts.
    Quote Originally Posted by animosity View Post
    I know, right? What the fuck, puke? Willing to take in Boston, an Irish dude and like, 17 dogs but not Ron? poor Ron.

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    Senior Member Bewitchingstorm's Avatar
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    We have Wells Fargo and had some issues with them last year on my husband's account. Long story short, he was traveling and called ahead to notify them of what state(s) he would be in and for how long. Once he got home (like a few days after his travel), strange charges came through from Virginia (one of the states he traveled through, but didn't stop in at all). We are talking like odd charges that totaled up to $500 or so.

    Fast forward to later in the year. The freaking same thing happened but this time it was in Georgia (a state he flew through), but this time it was near $1,000 in charges to Best Buy, Target, Total Wine, etc.

    I always had a theory that employees of Wells Fargo used his debit card/pin and knew exactly what states he authorized purchases to be in. It is just too much of a coincidence to think otherwise.

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    It was aliens raisedbywolves's Avatar
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    I am so livid over the fact that bankers got to keep their outrageous bonuses in the aftermath of the recent recession. Fuck, normal employees would be fired and charged for doing what they did, and these assholes got multi million dollar bonuses. They are just trying to rev it all up and do it again. They so want to get back to all their derivative trading and swaps that brought about the recent crisis....hell, they even got rid of the restrictions on them in a recent funding bill (late 2014).

    I so hope that Elizabeth Warren can stop this bullshit.
    https://www.warren.senate.gov/?p=press_release&id=1168

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    What do you care? Boston Babe 73's Avatar
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    Quote Originally Posted by raisedbywolves View Post
    I am so livid over the fact that bankers got to keep their outrageous bonuses in the aftermath of the recent recession. Fuck, normal employees would be fired and charged for doing what they did, and these assholes got multi million dollar bonuses. They are just trying to rev it all up and do it again. They so want to get back to all their derivative trading and swaps that brought about the recent crisis....hell, they even got rid of the restrictions on them in a recent funding bill (late 2014).

    I so hope that Elizabeth Warren can stop this bullshit.
    https://www.warren.senate.gov/?p=press_release&id=1168
    Yep. I keep trying to explain to people that they're doing a repeat of 2008. Look at real estate now, totally a bubble. I'm waiting in the sidelines for it all to crash again, then I'll finally be able to own property with my stellar credit, basement bottom prices and a down payment.
    Quote Originally Posted by Miller22 View Post
    I thought the exact same thing. Poor Brennen Tammons.
    Oh well, back to gum.
    ....or exchanging Puke's wang for spicy nuts.
    Quote Originally Posted by animosity View Post
    I know, right? What the fuck, puke? Willing to take in Boston, an Irish dude and like, 17 dogs but not Ron? poor Ron.

  6. #6
    It was aliens raisedbywolves's Avatar
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    And less than a week after the Wells Fargo scandal broke, House Republicans are trying to pass HR 5983 to basically take pretty much all the post recession restrictions off banks.

    http://www.cutimes.com/2016/09/13/ho...al-financial-o

    Some of the items in this bill are:

    the so-called “Financial CHOICE Act” (H.R. 5983) tears apart the vital Dodd-Frank Wall Street reforms passed after the 2008 meltdown – and more – by:

    Revoking the authority to break up “too big to fail” banks
    Repealing the important Volcker Rule, which blocks banks from making risky gambles with your deposit money solely to increase their profits
    Stopping the Labor Department’s common-sense fiduciary rule, which requires retirement advisers to point you toward investments that serve your best interest, not ones that give them a kickback
    And WAYYY more bad policies than there’s room to write (it’s 513 pages long)

    I am so fucking disgusted.

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    It was aliens raisedbywolves's Avatar
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    Wells Fargo CEO is 'sorry' -- but he's not stepping down

    http://money.cnn.com/2016/09/13/inve...ing/index.html

    Wells Fargo CEO John Stumpf is "sorry" for the fake-account scandal at his bank, but he's got no plans to exit despite a growing firestorm.

    "The best thing I can do is lead this company," Stumpf told CNBC on Tuesday when asked about calls for his resignation.

    It was the Wells Fargo (WFC) boss's first television appearance since last week's bombshell settlement in which regulators accused the bank of creating more than 2 million fake bank and credit card accounts.

    "We deeply regret any situation where a customer got a product they didn't request," Stumpf said. "The buck stops with all of us, including me. I am the leader."
    Of course he isn't stepping down. He doesn't think he has done anything wrong, and he thinks he is entitled to the power and money that come with his position. He's better than the rest of us plebs.

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    Senior Member Bewitchingstorm's Avatar
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    He's done a fine job thus far, why not?

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    senior cunt emmieslost's Avatar
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    sigh. this stuff makes me so angry, but it doesn't surprise me in the least.

    when i was occupying i took a class on civil disobedience. i met two wells fargo employees (we had a lot of occupiers who worked for WF, they're the biggest employer in DSM. they usually showed up masked) who were hired by WF to forge documents and make things appear that they were handled "legally" after the mortgage crisis. knowing the culture of the company and how things were handled, it isn't surprising to me in the least that their employees would think it's perfectly OK to bend/break the rules for their benefit. it's nearly impossible to change corporate culture, especially when it's gotten to that level.

    i wish more people who have joined us in our fight back then, but i understand why people don't at the same time. it was stressful and rewarding and it changed my life and the lives of everyone else i know who was involved. i hope if we see something like occupy rise again more people will participate. but mostly, i hope people start caring as much about local and state politicians as they do about presidential ones. thats where we can make some change. vote these damn bank-loving, greedy, republicans and dems out of office already. ugh.

    oh, and don't bank at wells fargo! find yourself a nice, cozy, community credit union.

  10. #10
    It was aliens raisedbywolves's Avatar
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    I can't remember which bank it was (and can't find the story), but sometime this year a bank put out a bunch of job openings that essentially were for document forgers for their Mortgage Dept. They didn't even try to be that slick about it....because they know they have nothing really to fear.


    This is an interesting story about about the investigation by the FBI of forged mortgage docs. I am so angry that the banks think they always get to win, even when they are the ones who fucked up.
    http://www.vice.com/read/what-happen...aud-in-florida


    I am sure nothing will come of it, because too many politicians need it to stay the same, but at least they are going to have to come before the senate for a hearing committee:

    Elizabeth Warren v. Wells Fargo: Senate hearing set for September 20

    http://www.koco.com/money/elizabeth-...er-20/41648722

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    http://www.nbcnews.com/business/busi...ources-n648416

    As Wells Fargo Faces Senate Panel, Elizabeth Warren Calls for Criminal Charges

    "You should resign," she bluntly told Wells Fargo CEO John Stumpf. "You should give back the money you took while this scam was going on and you should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission," she said.

    Others on the panel spoke of the "toxic culture" pervasive at Wells Fargo, and accused the bank of not acting fast enough to fix its illegal practices.
    Stumpf vowed that Wells Fargo has already begun to implement new internal procedures that will prevent the recurrence of such incidents, but repudiated any theory that the nation's largest bank was involved in endemic scheming, saying, "We never directed nor wanted our employees to provide products and services to customers they did not want or need."

    Related: Wells Fargo CEO will Face Elizabeth Warren in Senate

    "Wrongful sales practice behavior goes entirely against our values, ethics, and culture and runs counter to our business strategy of helping our customers succeed financially," noted Stumpf.

    "That said, I accept full responsibility for all unethical sales practices in our retail banking business, and I am fully committed to doing everything possible to fix this issue, strengthen our culture, and take the necessary actions to restore our customers' trust."

    "If one of your tellers took a handful of $20 bills out of the cash drawer, they'd probably be looking at criminal charges for theft," said Warren. "But you squeezed your employees to the breaking point so they could cheat customers and you could [...] put hundreds of millions of dollars in your pocket."

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    Senior Member Bewitchingstorm's Avatar
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    Dang, Warren don't take no shit. She is a honey badger.

  13. #13
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    Quote Originally Posted by Bewitchingstorm View Post
    Dang, Warren don't take no shit. She is a honey badger.
    Yes she is. She is dogged with these banks. Wish others would be so too. She can't do it alone.


    http://money.cnn.com/2016/09/21/inve...nts/index.html

    I called the Wells Fargo ethics line and was fired

    Now CNNMoney is hearing from former Wells Fargo (WFC) workers around the country who tried to put a stop to these illegal tactics. Almost half a dozen workers who spoke with us say they paid dearly for trying to do the right thing: they were fired.

    "They ruined my life," Bill Bado, a former Wells Fargo banker in Pennsylvania, told CNNMoney.

    Bado not only refused orders to open phony bank and credit accounts. The New Jersey man called an ethics hotline and sent an email to human resources in September 2013, flagging unethical sales activities he was being instructed to do.

    Eight days after that email, a copy of which CNNMoney obtained, Bado was terminated. The stated reason? Tardiness.

    HR official describes 'retaliation'

    Retaliating against whistleblowers is a major breach of trust. Ethics hotlines are exactly the kind of safeguards put in place to prevent illegal activity from taking place and provide refuge to employees from dangerous work environments.

    Wells Fargo CEO John Stumpf made precisely that point on Tuesday when he testified before angry Senators.

    "Each team member, no matter where you are in the organization, is encouraged to raise their hands," Stumpf told lawmakers. He mentioned the anonymous ethics line, adding, "We want to hear from them."

    But that's not the experience of some former Wells Fargo workers.

    One former Wells Fargo human resources official even said the bank had a method in place to retaliate against tipsters. He said that Wells Fargo would find ways to fire employees "in retaliation for shining light" on sales issues. It could be as simple as monitoring the employee to find a fault, like showing up a few minutes late on several occasions.

    "If this person was supposed to be at the branch at 8:30 a.m. and they showed up at 8:32 a.m, they would fire them," the former human resources official told CNNMoney, on the condition he remain anonymous out of fear for his career.

    CNNMoney spoke to a total of four ex-Wells Fargo workers, including Bado, who believe they were fired because they tipped off the bank about unethical sales practices.

    Another six former Wells Fargo employees told CNNMoney they witnessed similar behavior at Wells Fargo -- even though the company has a policy in place that is supposed to prevent retaliation against whistleblowers. CNNMoney has taken steps to confirm that the workers who spoke anonymously did work at Wells Fargo and in some cases interviewed colleagues who corroborated their reports.

    "I endured harsh bullying ... defamation of character, and eventually being pinned for something I didn't do," said Heather Brock, who was fired earlier this month as a senior business banker at a Wells Fargo branch in Round Rock, Texas.

    'That's retaliation'

    One such former employee was fired after flagging issues directly to Stumpf, according to Senator Bob Menendez.

    At the Senate hearing, Menendez read the New Jersey woman's 2011 email to Stumpf, where she described improper sales tactics she felt were "wrong."

    "Did you read that email?" Menendez asked Stumpf.

    "I don't remember that one," Stumpf replied.

    "Okay, well she was fired. ... So much for the safe haven," Menendez said.

    Several senators spoke about the plight of the mostly 5,300, low-level employees who were fired related to the scandal.

    The firing certainly took a huge toll on Bado's life. It put a permanent stain on his securities license, scaring off other prospective bank employers. Today, the New Jersey man's house is on the verge of being foreclosed on and he's working part-time, at Shop-Rite.

    "You wonder where the justice is," Bado said.

    Ken Springer, a former FBI agent who runs a firm that offers a whistleblower hotline service, was alarmed by the allegations made by former Wells Fargo employees.

    "That's retaliation. It's a big problem -- and a perfect example of what shouldn't happen," Springer said. "It looks like there's been a terrible breakdown of checks and balances at Wells Fargo."

    In response to CNNMoney's report, a Wells Fargo spokeswoman said: "We do not tolerate retaliation against team members who report their concerns in good faith." She emphasized that employees are encouraged to immediately report unethical behavior to their manager, HR representative or 24-hour ethics line.

    'Excessive tardiness' eight days after HR email

    Wells Fargo confirmed to CNNMoney that Bado had worked there. However, the bank declined to comment on why Bado left and and on the ethics complaint with corresponding report number he cited in emails. "Everything submitted to the EthicsLine is investigated," a Wells Fargo spokeswoman said.

    While ethics complaints are supposed to be confidential, documents show that Bado did speak out before he was fired. On September 19, 2013, Bado wrote an email to a Wells Fargo HR rep and copied his regional manager, where he detailed improper sales tactics.

    Documents show Bado was fired -- for "excessive tardiness" -- just eight days later.

    "I have been asked on several occasions to do things that I know are not ethical and would be grounds for discharge," Bado said in the email to HR.

    He said a branch manager on "many occasions" asked him to send out a debit card, "pin it," and enroll customers in online banking -- "all without the customers (sic) request or knowledge." Those are precisely the same practices that regulators fined Wells Fargo for three years later and that senators grilled the bank over this week.

    Lose, lose situation for Heather Brock

    Brock, the business banker from Texas, told CNNMoney she experienced a similar situation. The 26-year-old single parent of two young boys was fired soon after she contacted the company's ethics line about illegal sales practices she witnessed.

    Wells Fargo also confirmed Brock used to work at the company but declined to comment further.

    Brock was fired earlier this month, with Wells Fargo accusing her of falsifying documents -- a charge Brock emphatically denies. Brock said the company bullied her into admitting she did something wrong.

    A current Wells Fargo employee who works in Brock's branch vouched for her version of events.

    "That's really scary when you're with a big corporation like this and HR doesn't have your back," said the current employee, who wished to remain anonymous so as not to get fired as well.

    Brock is hoping her story forces meaningful change at Wells Fargo.

    "You lose if you do complain and you lose if you don't. What does a powerless employee do?" Brock said.

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    Senior Member daisylane's Avatar
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    Quote Originally Posted by raisedbywolves View Post
    Yes she is. She is dogged with these banks. Wish others would be so too. She can't do it alone.


    http://money.cnn.com/2016/09/21/inve...nts/index.html

    I called the Wells Fargo ethics line and was fired
    This is why you don't get whistle blowers. They get gang banged to hell.
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    Senior Member animosity's Avatar
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    I just had issues using my card online I called and they said its registering as if I have exceeded my maximum daily limit. Just a glitch, they said. Hmmmmmm. Very chipper though. They thanked me for being the best part of Wells Fargo!
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    Senior Member Angiebla's Avatar
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    I do not comprehend how these people aren't held criminally responsible and forced to pay the money back. People's credit was ruined because of those fuckers.


    Hell, when I worked for a retail chain that had a stupid quota everyone had to meet for signing customers up for a rewards program. People made up fake names and numbers, and got fired with the status "not rehireable within the company". They didn't even do it for financial gain, and no customers were affected. They were just trying to meet the quota.

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    Quote Originally Posted by Angiebla View Post
    I do not comprehend how these people aren't held criminally responsible and forced to pay the money back. People's credit was ruined because of those fuckers.
    Yeah, it's not like they can just un-do the damage by cancelling the credit card. How can they make that right? Are they notifying the credit bureaus that they opened the accounts as bullshit and not to let them affect people's credit? I doubt it.

    The CEO trying to put the blame on the peons was sickening. If you're going to be a total sleaze, at least be big enough to stand up and take responsibility. Or, if not, then I guess you have to admit that you had nothing to go with all the sales and profit, that they peons did it, and admit you didn't earn any of your salary and bonuses and give it all back. You can't have it both ways, fucker!

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    http://abcnews.go.com/Business/senat...ry?id=42307532

    Senators Slam Wells Fargo Over Arbitration Agreements in Scathing Letter

    In a letter shared with ABC News, six senators have slammed Wells Fargo bank for its use of forced arbitration clauses in its customer account agreements, which the senators say enabled the company to keep its accounts scandal out of the public eye and the courts for years, and asked embattled CEO John Stumpf to provide information so that they can “better understand the situation at Wells Fargo” and "prevent similar fraudulent practices in the future."

    Arbitration, mandated in some if not all basic agreements that customers sign when they open accounts at the bank, "helps hide fraudulent schemes such as the sham accounts at Wells Fargo from the justice system, from the news media, and from the public eye," the senators wrote.

    The senators also write, “These clauses eliminate consumers’ ability to bring a claim in open court or to band together in a class action, before any dispute has arisen. Forced arbitration clauses deny access to the courts even when consumers are seeking to enforce their rights under fundamental state and federal laws”.

    "Arbitration proceedings are kept secret, so that other customers are deprived of the knowledge that their experiences might be part of a more widespread problem," according to the six senators.

    The letter was written by Patrick Leahy (D-VT), Sherrod Brown (D-OH), Dick Durbin (D-IL), Al Franken (D-MN), Richard Blumenthal (D-CT) and Elizabeth Warren (D-MA).
    On Thursday, a group of senators, some of whom also signed today’s letter, asked the Department of Labor to open an investigation into Wells Fargo's employment practices, and on Tuesday, Stumpf appeared before the Senate Banking Committee, facing blistering questions over the accounts scandal.

    Separately on Thursday, Stumpf resigned from his position on the Federal Advisory Council, the San Francisco Federal Reserve Bank told ABC News. The council generally meets with the Federal Reserve four times a year to advise it on banking and economic issues.

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    http://www.nbcnews.com/business/busi...loyees-n653146

    Labor Department Will Probe Wells Fargo; CEO Forfeiting $41 Million in Stock

    Secretary of Labor Tom Perez on Tuesday said he would initiate a "top-to-bottom" review of labor practices at disgraced bank Wells Fargo ? coming as CEO John Stumpf agreed to forfeit $41 million over a brewing sales scandal.

    Perez was responding to a letter from eight Democratic senators who had requested a probe into whether Wells Fargo ? one of the nation's largest banks ? had violated wage and working hour laws by failing to pay overtime to tellers and sales representatives who stayed late to meet sales quotas.
    Key Speakers At 2015 The Fortune Global Forum
    John Stumpf, chairman and chief executive officer of Wells Fargo & Co., listens during the 2015 Fortune Global Forum in San Francisco on Nov. 2, 2015. Bloomberg / Bloomberg via Getty Images

    "We take the concerns raised in your letter very seriously," Perez told the lawmakers, whose action was spearheaded by Sen. Elizabeth Warren, D-Mass.

    "Given the serious nature of the allegations, I have directed enforcement agencies within the department to conduct a top-to-bottom review of cases, complaints or violations concerning Wells Fargo over the last several years," Perez also wrote.

    In their letter to the department on Friday, the senators detailed how Wells Fargo had "a management culture characterized by 'mental abuse,' being forced to work overtime 'for what felt like after-school detention' during the week and on weekends, and being 'severely chastised and embarrassed in front of 60-plus managers.'"

    Wells Fargo said the bank aimed to make all employees "feel valued, rewarded and recognized" through "market competitive compensation, career-development opportunities, a broad array of benefits, and a strong offering of work-life programs."

    The probe of the embattled bank is underway as Stumpf has agreed to give up about $41 million in stock awards and his salary following a $185 million settlement with the Consumer Financial Protection Bureau, reported CNBC.

    Wells Fargo employees were accused of opening fee-generating accounts without customers' authorization in order to meet the high sales goals. But the bank said it fired about 5,300 employees from January 2011 to March 2016 for engaging in the deceptive practice.

    Also on Tuesday, Wells Fargo said it cut ties with its community banking division head, Carrie Tolstedt. She will not be given a severance package, according to CNBC.

  20. #20
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    I soooo hope they proceed with criminal charges! It makes me happy too that they are now going to look for the same behaviour at other banks. I'm not naive, I know this isn't going to stop anything, but I would so love to see some bankers in handcuffs! It makes me giddy too that they clawed back part of his bonus AND part of the bonus for the retiring banker over the division that was responsible for this crap. She's still getting 77 million, but she has to give back 19 million. Even though it's a small amount compared to the total, I am sure she feels like she shouldn't have to give ANY back. I bet she is livid, and that makes me happy. I wish now I had gone into forensic accounting, and made a career out of tracking down these bankers' criminal bullshit!

    I bet she is livid, and that makes me happy.

    Lawmakers: Wells Fargo a 'criminal enterprise' like Enron

    Wells Fargo CEO John Stumpf is running "a criminal enterprise" and should be fired or even jailed, several members of Congress claimed.

    Rep. Michael Capuano on Thursday said the Wells Fargo (WFC) scandal and the people who lead the bank reminded him of "the guys who ran Enron," evoking a company that was found guilty of massive financial fraud.

    Capuano said Stumpf is "clearly and unequivocally guilty" of a range of crimes, including conspiracy to commit fraud, conspiracy to commit identity theft and racketeering.

    Stumpf sought to defend his bank in front of a very hostile audience of members of the House Financial Services Committee. However, Stumpf wasn't able to get much of a response in beyond his prepared remarks apologizing for the scandal.

    He was repeatedly cut off by members of Congress, Republican and Democrat, who pummeled him by comparing him to an actual bank robber and calling Wells Fargo a "school for scoundrels" with a "broken culture," among other things.

    Stumpf's appearance comes as calls for his resignation have gotten more strident. Several House members repeated those demands.

    "I recognize we could have done more earlier," Stumpf said. "I try to lead with courage and conviction, but of course we make mistakes."

    "I will not hesitate to issue subpoenas. We will do what is necessary to get to the bottom of this," Rep. Jeb Hensarling, the Republican chairman of the House committee, said on Thursday.

    Rep. Gregory Meeks accused Stumpf of running "basically a criminal enterprise" that reflects poorly on the rest of the banking industry. "You should be fired, because the buck stops with you," he said.

    Rep. Maxine Waters, whose district includes Los Angeles, said she now believes Wells Fargo should be broken up because it's "too big to manage."

    Waters, the ranking Democrat on the committee, said Wells Fargo has "refused" to turn over the documents and information lawmakers have requested.

    "It is in your best interest to come forward with those documents," warned Waters, who called the scandal "some of the most egregious fraud we have seen since the foreclosure crisis."

    Wells Fargo first characterized the fake account scandal as a problem that began in 2011. However, last week the bank extended its search for unauthorized accounts by two more years, to include 2009 and 2010.

    Former Wells Fargo workers have told CNNMoney the problem goes back even further. One branch manager in Arizona said she was first pressured to instruct employees to open fake accounts in 2007. On Thursday, Rep. Carolyn Maloney also presented Stumpf with evidence from a court case in Montana that showed Wells Fargo workers were fired for opening unauthorized debit accounts in 2007.

    Despite what Maloney called "clear evidence" of a problem in 2007, Stumpf declined multiple requests from the Congresswoman to expand Wells Fargo's review before 2009.

    Maloney also accused Stumpf of "very suspicious" sales of $13 million worth of Wells Fargo stock in October 2013, the largest such sales during his nine years as CEO. Stumpf has said he first learned of the unauthorized account problem in 2013 -- though he's sketchy on precisely when and who told him.

    "It seems very, very suspicious that it happened right after your bank was turned into a school for scoundrels," Maloney said.

    Rep. Stephen Lynch took things to an even more serious level, suggesting Wells Fargo could be prosecuted under the Racketeer Influenced and Corrupt Organizations Act, the statute known as RICO that has been applied against FIFA as well as members of the Mafia.


    Lynch cited allegations of widespread fraud at Wells Fargo as well as claims by former Wells Fargo workers who told CNNMoney they were retaliated against after flagging fraudulent activity. "These whistleblowers were intimidated or even fired," Lynch said.

    Several lawmakers suggested the House expand the hearing to include the CEOs of other banks. Rep. Brad Sherman said he wants to ensure the "cross-selling mania that has afflicted Wells Fargo" is not found elsewhere.


    Under pressure from Warren and others, Wells Fargo has also agreed to claw back $19 million in stock awards from Carrie Tolstedt, the executive who led the division that created the fake accounts and has since left the bank.
    I want to see them all in handcuffs!

  21. #21
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    http://www.wsj.com/articles/wells-fa...06019?mod=BNM/

    Wells Fargo CEO Stumpf Steps Down

    Wells Fargo & Co. Chairman and Chief Executive John Stumpf is stepping down from both roles, effectively immediately, as the bank’s sales tactics scandal continues to roil the firm, a person familiar with the matter said.
    Not the answer to everything, but he didn't want to step down, so it's a start that he is being forced out.

  22. #22
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    I know this is boring, but it makes me so fucking angry. I hope they go after this asshole criminally!

    http://money.cnn.com/2016/10/18/inve...007/index.html

    Letter warned Wells Fargo of 'widespread' fraud in 2007

    Former Wells Fargo CEO John Stumpf told Congress under oath last month that he wasn't notified of a serious fake account problem at the bank until 2013.

    However, CNNMoney has obtained a 2007 letter addressed to Stumpf that warned of widespread "unethical (and illegal) activity" inside Wells Fargo and the "routine deception and fraudulent exploitation of our clients."

    The letter was written by a Wells Fargo (WFC) employee, who had been transferred from the branch after raising sales concerns, and who later won a federal whistleblower retaliation case against the company.


    Eerily, the letter seemed to predict the scandal Wells Fargo is dealing with today.

    "Left unchecked, the inevitable outcome shall be one of professional and reputational damage, consumer fraud and shareholder lawsuits, coupled with regulator sanctions," the letter warned.

    It said the illegal activity in Northern California was "widespread and so highly encouraged that it has become a normal sales practice."

    The employee copied Stumpf on a second letter addressed to the audit and examination committee of Wells Fargo's board of directors.

    That letter to the board made similar warnings of "illegal and unethical activity and fraud," adding that the "activities remain ongoing to this day."

    CNNMoney hasn't been able to determine whether the letters were actually sent, nor whether Stumpf or the board members read or received them.

    The employee, who has since left Wells Fargo, declined to comment for this story.
    The actual letter is downloadable at the link above.

  23. #23
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    My angry face emoticon should have been one paragraph up. I am not angry about the whistleblower, just all the lies and bullshit.

  24. #24
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    http://www.dailykos.com/stories/2016...ded-About-that

    Remember how Wells Fargo was 'going to make things right' with customers defrauded? About that ...

    After paying out $185 million in penalties for perpetrating a massive fraud on millions of customers, Wells Fargo executives sat in front of Senate hearings blaming all kinds of people below the pay grade of executive. Meanwhile, Wells Fargo workers began coming out of the woodwork to remind the federal government to look into how many complaints had been lodged against Wells Fargo internally—surrounding the very fraudulent practices and environment that they were now claiming ignorance of. Wells Fargo tried everything they could to see if CEO John Stumpf would be able to hold his job, but once executive after executive were given chances to resign with huge packages, it finally came to a head with Stumpf stepping down as the CEO. Throughout those hearings Wells Fargo beat the drum that they would make things right with the customers for whom scam accounts had been opened.

    The bank has sought to kill lawsuits that its customers have filed over the creation of as many as two million sham accounts by moving the cases into private arbitration — a secretive legal process that often favors corporations.

    Wells Fargo is pushing for arbitrations because it separates consumers, making class actions impossible. It also allows Wells Fargo to keep the dirty laundry details of their fraud private and not available to public scrutiny. Considering that Wells Fargo was complicit in millions of cases of identity theft, it’s very frustrating for many customers to see them weaseling about.

    “Wells Fargo’s customers never intended to sign away their right to fight back against fraud and deceit,” said Senator Sherrod Brown, an Ohio Democrat, who introduced a bill last week that would prevent Wells from forcing arbitration in the sham account cases.

    Yet even as the bank reels in the court of public opinion, Wells Fargo has been winning its legal battles to kill off lawsuits. Judges have ruled that Wells Fargo customers must go to arbitration over the fraudulent accounts.

    One of the problems with arbitration cases is that they make arbitrators money, and that money comes from the corporations that bring these arbitrators cases and therefore, a steady flow of contracted jobs. You also have to remember that Wells Fargo opened over two million fraudulent accounts. Many of those legal claims from customers amount to $100 or less. Getting an individual lawyer to help you in an arbitration case for less than $100 is near impossible. Multiply that by thousands of class-action plaintiffs and Wells Fargo might be paying out lots of their ill-gotten money. Going to arbitration has worked before for Wells Fargo. After trying to litigate class-action lawsuits against them back in 2009 for their excessive overdraft predatory behaviors, Wells Fargo continued to try to fight to move the cases into arbitration. This was a decision in 2012, after years of Wells Fargo attempting to pretend they hadn’t agreed to litigation.

    Wells Fargo & Co. (WFC), the biggest U.S. home lender, lost a bid to force the arbitration of customer disputes about overdraft fees.

    The bank can’t force arbitration after twice waiving its right to do so, the U.S. Appeals Court based in Atlanta ruled today, denying the bank’s motion to dismiss a class-action lawsuit.

    The court found that the bank put the customers through a litigation process that lasted years and yielded about 900,000 documents before asserting its right to force the customers to arbitrate their dispute.

    I have yet to see one of those rousing for-the-people tweets from Donald Trump about this injustice. Maybe he’s just too busy DVRing his name on late night comedy shows.

  25. #25
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    http://money.cnn.com/2017/06/19/inve...rve/index.html

    Elizabeth Warren is so livid with Wells Fargo that she's demanding the government take the dramatic step of throwing out most of the board of directors.

    The Democratic senator fired off a letter Monday demanding that the Federal Reserve "remove" the 12 Wells Fargo directors who served between May 2011 and July 2015. That's when Wells Fargo has acknowledged firing 5,300 workers for creating 2 million fake accounts.

    The scandal "revealed severe problems with the bank's risk management practices," giving the Fed the power to oust the directors, Warren wrote to Fed chief Janet Yellen.

    "The Federal Reserve must hold the Wells Fargo Board members accountable for their risk-management failures," Warren wrote in the letter, which was first reported by CNBC.

    But Wells Fargo (WFC) directors shouldn't start packing their bags just yet. Experts in bank regulation said such an ouster would be unprecedented at a big bank and is unlikely, despite the uproar over Wells Fargo's conduct.

    "It's a drastic action that doesn't seem ripe. Removing an entire board is just too much for me," said Ernest Patrikis, who served for 30 years at the Federal Reserve Bank of New York and now advises banks as a partner at the law firm White & Case.

    Related: New Wells Fargo scandal over modifying mortgages

    But Warren is clearly pressuring the Fed to do something and trying to counter President Trump's push to rip up regulation.

    She pointedly noted in her letter that other regulators have already punished Wells Fargo. For instance, the Consumer Financial Protection Bureau, which Republicans want to rein in, fined Wells Fargo a record $100 million last September.

    "The Federal Reserve has done nothing to date, despite its ample statutory authority," Warren wrote. "It is time for the Federal Reserve to act as well."

    It may not be fair to say the Fed has done nothing. Yellen said in September that the Fed launched a review of the compliance and governance systems at big banks.

    A Fed spokesman said the central bank has received the letter and plans to respond.

    The timing of Warren's letter is interesting: Less than two months ago, all of Wells Fargo's directors were re-elected, although some received very low levels of support.

    Warren cited a federal law that empowers the Fed to remove directors if they "engaged or participated in any unsafe or unsound practice" that caused a federally insured bank to "suffer financial loss."

    Warren argues that these points have been established -- in part by Wells Fargo's own internal investigation, which found that Wells Fargo suffered from inadequate risk management systems that should have flagged the illegal activity earlier.

    Shareholder advisory firm Institutional Shareholder Services agrees. ISS argued the Wells Fargo board made the scandal worse by failing to provide oversight that could have limited the damage.

    The Federal Reserve's own supervisory manual says that failing to establish an adequate risk management system is considered "unsafe and unsound conduct" at a big bank.

    Wells Fargo has also undoubtedly suffered reputational and financial loss, including a $142 million class action settlement with customers harmed by the fake accounts.

    "Simply put, the Board cannot possibly have satisfied its risk-management obligations under Federal Reserve regulations," Warren said.

    Related: The most dangerous part about killing Dodd-Frank

    The three directors who joined the board after 2015, and presumably would be spared by Warren, are CEO Tim Sloan and independent directors Karen Peetz and Ronald Sargent

    In response to Warren's letter, Wells Fargo noted that its board and management team have taken many steps to hold executives accountable and "make things right" with customers.

    For instance, Wells Fargo has eliminated its unrealistic sales goals, promoted Sloan to CEO and encouraged workers to speak up about bad behavior.

    "That work continues and remains a core part of our efforts to build a better Wells Fargo for the future," the bank said in a statement.

    A spokesman for Wells Fargo's independent directors declined to comment on the Warren letter.

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