Daily Archives: October 4, 2013


Wells Fargo fires workers accused of cheating on sales goals

Wells Fargo fires workers accused of cheating on sales goals

Wells Fargo & Co. has fired about 30 branch employees in the Los Angeles region who the bank said had opened accounts that were never used and attempted to manipulate customer-satisfaction surveys.


“We found a breakdown in a small number of our team members,” said Gary Kishner, a bank spokesman for the region, which stretches from Ventura to Pomona and south into Orange County.

The employees were trying to take shortcuts to meet bank goals for sales and customer satisfaction, Kishner said. Wells Fargo, based in San Francisco, employs about 6,500 people at branches in its L.A. Metro region, he said. Of those, fewer than half of 1% were fired.

Jamie Dimon No Longer Chairman Of JPM’s Primary Banking Subsidiary

Via WSJ,


James Dimon has relinquished his chairmanship of J.P. Morgan Chase & Co.’s main operating bank, according to public records and people familiar with the situation.


He shed the title on July 1, one of these people said. In a document made public Thursday, Mr. Dimon is listed as chairman emeritus of J.P. Morgan Chase Bank N.A., the deposit-taking subsidiary that operates branches in 23 states as well as several other countries.



The move doesn’t affect Mr. Dimon’s status as CEO or chairman of J.P. Morgan’s parent company board, a more powerful body that provides oversight of all company operations.



A J.P. Morgan spokesman said the governance change for one of J.P. Morgan’s largest subsidiarieswasn’t the result of outside pressure.



The deposit-taking subsidiary once chaired by Mr. Dimon last year had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution, say people familiar with the move. Since January, that subsidiary’s primary regulator has issued public enforcement actions demanding changes to alleged risk-management, anti-money-laundering and debt-collection weaknesses. The bank is working to fix the problems identified by the orders.


The J.P. Morgan Chase spokesman said the change in Mr. Dimon’s title happened “solely to create a more uniform structure among our subsidiary boards.”


Read more here…


Mortgage Monitor Orders More Fixes to Banks’ Foreclosure Practices

Mortgage Monitor Orders More Fixes to Banks’ Foreclosure Practices

The monitor of the national mortgage settlement plans to force the five largest servicers to fix billing and communications problems that have plagued homeowners and been the subject of tens of thousands of complaints.

Joseph Smith, the monitor of the settlement, issued four new teststhat the servicers will have to pass in order to comply with the terms of the 2012 agreement, which overhauled national servicing standards and required the servicers to provide $25 billion in relief to affected homeowners. The changes are a response to homeowner complaints about shoddy billing practices, poor communications and widespread dual-tracking, said Smith in a release Wednesday.


Eleven big banks release updated living wills

Eleven big banks release updated living wills

Prudential regulators published the second-round of updated living wills filed by eleven of the nation’s largest banks, according to Reuters.

As part of reforms implemented after the financial crisis, big banks are required to submit blueprints on how the firms plan to wind down in the midst of a financial crisis.

The eleven banks filed their original plans in 2012. Reuters discussed the updates Thursday:

That group of banks with $250 billion or more in nonbank assets in the United States included Bank of America Corp, JPMorgan Chase & Co, Deutsche Bank AG and Barclays Plc.

After finding some gaps in the planning last year, regulators asked banks to include more detailed information this time about potential obstacles tobankruptcy.

They asked banks to consider how their funding and liquidity, global cooperation and interconnectedness could affect regulators’ ability to unwind them during a financial crisis.

Source: Reuters