Wells Fargo faces possible $1 billion fine for fraud

❝ Wells Fargo & Co. confirmed industry and analyst speculation Friday that its two federal regulators want the bank to pay up to $1 billion in civil penalties to resolve multilayered customer-account issues…

The bank said those issues include “our compliance risk management program and our past practices involving certain automobile collateral protection insurance policies and certain mortgage interest rate lock extensions…”

❝ At $1 billion, it is likely to be among the largest fines in financial services history and already being considered at a historic level by analysts…

Never steal anything small. You’d probably get jail time.

5 thoughts on “Wells Fargo faces possible $1 billion fine for fraud

  1. Bank run says:

    “Fed-up Wells Fargo customers could pull billions from bank – report” (Morgage Professional America 10/10/18) https://www.mpamag.com/news/fedup-wells-fargo-customers-could-pull-billions-from-bank–report-113498.aspx According to a report by consulting firm cg42, 30% of Wells Fargo’s customers are at risk of bailing on the scandal-plagued bank. The report projected that Wells Fargo could lose $93 billion in deposits over the next year – about 7% of the bank’s total deposits, according to a CNN report.

  2. Giddy-up! says:

    New Wells Fargo CEO Gets a 40% Raise to $23 Million https://www.youtube.com/watch?v=RHcc1k9pUG8 Wells Fargo named Charles Scharf, chairman and CEO of Bank of New York Mellon, as its new chief executive officer and president on Friday, effective Oct. 21.
    The bank struggled for months to find a candidate willing to take the top position since CEO Tim Sloan abruptly resigned in March after 31 years at the fourth-largest U.S. bank. Sloan was supposed to clean up the mess that had claimed his predecessor, John Stumpf, but failed to satisfy regulators’ demands to overhaul the sprawling institution.
    Stumpf announced his retirement in October 2016 after trying to deal with a scandal in which employees had created millions of fake bank accounts to meet sales quotas, severely damaging Wells Fargo’s reputation and spurring scrutiny from regulators and Congress. Last year, the Federal Reserve capped the bank’s asset growth after Wells Fargo discovered more problems with customer dealings.

  3. Willie Sutton says:

    (1/23/20): “The Office of the Comptroller of the Currency (OCC) filed charges against five former senior Wells Fargo executives, seeking $37.5 million in fines over a series of sales scandals dating to the early 2000s.
    The OCC charged five former Wells Fargo consumer banking and compliance officials with violating federal bank regulations and will seek to permanently ban them from the banking industry.
    The bank regulator on Thursday also announced it reached a settlement with former Wells Fargo chief executive John Stumpf, who agreed to pay $17.5 million in penalties and forgo any future management role at a U.S. bank.” https://thehill.com/policy/finance/479597-federal-bureau-charges-five-former-wells-fargo-execs-over-accounts-scandal
    See also https://en.wikipedia.org/wiki/Wells_Fargo#Lawsuits,_fines_and_controversies

  4. Update says:

    Wells Fargo was hit with a $3 billion fine Friday by federal authorities outraged by the millions of fake accounts created at the troubled bank over many years.
    https://www.ksl.com/article/46720672/us-government-fines-wells-fargo-3-billion-for-its-staggering-fake-accounts-scandal
    The settlement with the Justice Department and Securities and Exchange Commission, years in the making, resolves Wells Fargo’s criminal and civil liabilities for the fake-accounts scandal that erupted nearly four years ago.
    The deal does not, however, remove the threat of prosecution against current and former Wells Fargo employees.
    Prosecutors slammed Wells Fargo for the “staggering size, scope and duration” of the unlawful conduct uncovered at one of America’s largest and most powerful banks.
    The settlement focused squarely on Wells Fargo’s fake-accounts scandal, not the mistreatment of workers, auto borrowers, homebuyers and other customers that the bank has been accused of in recent years.
    Authorities said Friday that the criminal investigation into false bank records and identify theft at Wells Fargo is being resolved by what’s known as a deferred prosecution agreement. Under that agreement, authorities have agreed not to prosecute Wells Fargo for three years as long as it abides by certain conditions, including its continued cooperation with “further” government investigations.
    See also NYT https://www.nytimes.com/2020/02/21/business/wells-fargo-settlement.html

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