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

  1. #26
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    https://www.msn.com/en-us/money/comp...id=mailsignout

    Wells Fargo Said to Be Target of $1 Billion U.S. Fine

    Federal regulators are poised to impose a $1 billion penalty on Wells Fargo for a variety of alleged misdeeds, including forcing customers to buy auto insurance policies that they didn’t need, according to people briefed on the regulatory action.

    The expected penalty, levied by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, is likely to be announced Friday.

    It would mark the toughest action that the Trump administration has taken against a major bank. And it is the latest blow to Wells Fargo, which for years was regarded as one of the country’s best-run banks but lately has been reeling from a string of self-inflicted crises.

  2. #27
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    https://www.nbcnews.com/business/bus...andal-n1121396

    John Stumpf, the former head of Wells Fargo who presided over the bank's cross-selling scandal, has been barred from ever working for a bank, federal officials announced on Thursday.

    “The actions announced by the Office of the Comptroller of the Currency today reinforce the agency’s expectations that management and employees of national banks and federal savings associations provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations,” Comptroller of the Currency Joseph Otting said in a statement.

    Eight former executives were fined for their role in the sales fraud, including Carrie Tolstedt, head of the community banking division at the center of the scandal. Stumpf has agreed to pay a $17.5 million personal fine, and Tolstedt is facing a penalty that regulators say could top $25 million.

    The once-thriving San Francisco-based banking giant has experienced sluggish demand for its services since the scandal first came to light in 2016. It has paid $185 million in fines for unethical sales practices that included opening around 3.5 million fake accounts without customer authorization. It has also settled a $110 million class-action lawsuit and is currently facing a slew of lawsuits that could total $3 billion.

    About 5,300 staff members were fired in connection with the fraud. Stumpf abruptly retired from the company in October 2016, not long after facing blistering questions from congressional panels. The bank has since cycled through several senior executives and CEOs.

    An investigation by the bank's own board in 2017 blamed top management for creating an "aggressive sales culture" that led to the phony accounts. Wells' board singled out Stumpf and Tolstedt, saying both executives dragged their feet for years regarding problems at what was then the second-largest U.S. bank, and were ultimately unwilling to accept criticism that the bank's sales-focused business model was failing.

  3. #28
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    I would love to see these muthafuckas go to prison for 25 years, they ruin lives and in some cases destroy lives. I'm still very angry bcz my job stole $450,000 from me and cost me my job. Send these assholes to prison!

  4. #29
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    Quote Originally Posted by S281Saleen160 View Post
    I would love to see these muthafuckas go to prison for 25 years, they ruin lives and in some cases destroy lives. I'm still very angry bcz my job stole $450,000 from me and cost me my job. Send these assholes to prison!
    Do tell.

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    Quote Originally Posted by raisedbywolves View Post
    Do tell.
    What do you want me to tell? LoL.

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    Quote Originally Posted by S281Saleen160 View Post
    What do you want me to tell? LoL.
    Tell us about how your job stole that from you and what happened.

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    Quote Originally Posted by raisedbywolves View Post
    Tell us about how your job stole that from you and what happened.
    I worked on Wall St for 20+ yrs.....my company (Bear Stearns) was responsible for the market collapse in March 2008. Long story short, on March 11th 2008 I had over $450k in my acct....on March 14th 2008 my acct was worth only $3k and lost my job. After that I worked for JPMorgan, Chase and got fucked over again! None of the assholes who stole our money went to prison! That's exactly what they did, stole our money bcz they knew exactly what they were doing.......

    Many years ago I had posted some links to CNN articles that told the story.......I was in one of the articles but it was unrelated to the market crash.

  8. #33
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    Quote Originally Posted by S281Saleen160 View Post
    I worked on Wall St for 20+ yrs.....my company (Bear Stearns) was responsible for the market collapse in March 2008. Long story short, on March 11th 2008 I had over $450k in my acct....on March 14th 2008 my acct was worth only $3k and lost my job. After that I worked for JPMorgan, Chase and got fucked over again! None of the assholes who stole our money went to prison! That's exactly what they did, stole our money bcz they knew exactly what they were doing.......

    Many years ago I had posted some links to CNN articles that told the story.......I was in one of the articles but it was unrelated to the market crash.
    I get you. I thought you worked for WF. They're all crooks. I am a CPA and work with some financial firms and see it slowly building back up again to where we were with the 2008 crash. I also dabble in real estate investment and used to work in lending, and I see a lot of red flags popping up there. The whole industry stinks, but there's also plenty of average Joe's that want to use the crooked system to screw others over, and the whole thing just keeps churning.

  9. #34
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    https://www.msn.com/en-us/money/comp...id=mailsignout

    Wells Fargo, the nation's fourth-largest bank, agreed Friday to pay a $3 billion fine to settle a civil lawsuit and resolve a criminal prosecution filed by the Justice Department over its fake account scandal.

    Under pressure to meet sales quotas, bank employees opened millions of savings and checking accounts in the names of actual customers, without their knowledge or consent. Since the fraud became public in 2016, the bank has faced a torrent of lawsuits. The scheme lasted more than a decade, Justice Department officials said, and was carried out by thousands of Wells Fargo employees.

    "This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope and for its blatant disregard of customer private information," said Michael Granston of the Justice Department's Civil Division.

    Department officials said the bank took several steps to conceal the accounts from customers, such as forging customer signatures and preventing other Wells Fargo employees from contacting customers during routine surveys about their accounts.

    None of the money to be paid to the government under this settlement will go to compensate victims. But officials said Wells Fargo has separately made efforts to compensate victims for potential losses -- such as fees they might have been charged or harm to their credit ratings, if any.

  10. #35
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    https://www.cnn.com/2020/11/13/busin...sec/index.html

    The Securities and Exchange Commission on Friday charged former Wells Fargo CEO John Stumpf and a top lieutenant with misleading investors about the success of the division at the heart of the bank's fake-account scandal.

    The charges against Stumpf and Carrie Tolstedt, the former head of Wells Fargo's community bank, are the latest legal rulings in the four years since the bank admitted to creating millions of fake bank and credit card accounts.

    Tolstedt embraced a metric, known as "cross-sell," even though this measure was "inflated by accounts and services that were unused, unneeded or unauthorized," according to the SEC.

    In other words, the former Wells Fargo executive bragged to investors about how many different accounts customers had — despite the fact that millions of these accounts were fabricated by employees trying to meet wildly unrealistic sales goals set by management.

    Moreover, the SEC said Tolstedt signed off on the accuracy of Wells Fargo's public disclosures "when she knew or was reckless in not knowing" that statements about the bank's cross-sell metric were "materially false and misleading."

    Tolstedt left Wells Fargo (WFC) at the end of 2016.

    The SEC is seeking civil penalties against Tolstedt and wants to ban her from becoming an executive officer or sitting on a corporate board.
    Stumpf, the former CEO, was accused by the SEC on Friday of signing and certifying statements in 2015 and 2016 about Wells Fargo's cross-sell strategy and metric that he "should have known were misleading."

    Even "after being put on notice that Wells Fargo was misleading the public about the cross-sell metric," Stumpf "failed to assure the accuracy of his certifications," according to the SEC.

    The SEC said Stumpf, "without admitting or denying the SEC's findings," agreed to pay a civil penalty of $2.5 million and not to commit future violations. The agency said it plans to use the money to reimburse harmed investors.

    Stumpf stepped down as Wells Fargo's CEO in late 2016 during the height of the bank's scandals. Last year, Wells Fargo hired an outsider, former Visa (V) CEO Charlie Scharf, to try to get the bank back on track after years of stumbles.

    Wells Fargo declined to comment on the SEC charges. A spokesman pointed to a January message from Scharf calling the bank's previous sales tactics "inexcusable" and calling for an effort to make sure "such failings never again occur at Wells Fargo." The spokesman said the bank does not have contact information for the former executives.

    Wells Fargo has sought to penalize both Tolstedt and Stumpf by taking back a chunk of the two executives' generous compensation packages. In 2017, the Wells Fargo board took back an additional $28 million from Stumpf because an independent report found that he was "too slow to investigate or critically challenge" the bank's sales tactics.

    At the time, Wells Fargo also clawed back another $47 million from Tolstedt, arguing she "resisted and impeded scrutiny or oversight" and even "minimized the scale and nature of the problems."

    The SEC charges against Tolstedt and Stumpf come after the agency charged the bank in February with misleading investors about the fake-accounts scandal.

    Wells Fargo agreed to pay $3 billion in fines to settle investigations with the SEC and the Justice Department.
    In January, Stumpf agreed to a lifetime ban from the banking industry and a $17.5 million fine for his role in the fake-accounts scandal and other misconduct.

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