Daily Archives: September 13, 2016

Crime pays: Wells Fargo exec who received $125 million balloon package from heading fake accounts unit retired in July

Carrie Tolstedt left long time ago before the scandal broke out in the news recently.. And certainly Wells Fargo quietly got her out of her job with a nice balloon package months before the bank settlement and never made the shareholders aware of the scandal.

Wells Fargo’s Carrie Tolstedt to retire at year’s end; Mary Mack to succeed her as head of Community Banking effective July 31

Tolstedt led the nation’s largest retail banking branch network

SAN FRANCISCO, July 12, 2016

Wells Fargo & Company (NYSE:WFC) announced today that Carrie Tolstedt, the company’s head of Community Banking, has decided to retire at year’s end after a long and successful career, and effective July 31 will be succeeded by Mary Mack, who currently serves as president and head of Wells Fargo Advisors, the company’s national retail brokerage.

Tolstedt is a 30-plus year veteran of financial services with 27 years at Wells Fargo.  Following the company’s 2008 merger with Wachovia Corp., she was instrumental in building the nation’s largest retail branch network with 6,000 locations and 13,000 ATMs in 39 states and the District of Columbia. The Community Bank enjoys industry leadership in many areas, including retail deposit market share, debit card transaction volume, small business lending and mobile banking. Additionally, Tolstedt’s team is a leader in building and deepening customer loyalty and team member engagement across the business, which today serves more than 20 million retail checking households and 3 million small business owners, and employs 94,000 team members.

“A trusted colleague and dear friend, Carrie Tolstedt has been one of our most valuable Wells Fargo leaders, a standard-bearer of our culture, a champion for our customers, and a role model for responsible, principled and inclusive leadership,” said John Stumpf, Wells Fargo’s chairman and chief executive officer. “Because of her passion for serving our customers, wherever and however they chose to receive their banking services – online, in branches, or via mobile phones – Carrie leaves Wells Fargo uniquely positioned to continue to be a leader in retail banking, no matter how the future of banking evolves. We share in the pride that she has for the legacy, accomplishments and talent that she will leave behind.”

Read on.

Elizabeth Warren along with four other Senator want answers in the Wells Fargo scandal

CNN Money:

Warren joined four other Senate Democrats on Monday in demanding the U.S. Senate banking committee hold “immediate” hearings to “fully investigate the matter.”

“This was a staggering fraud,” Warren told CNN’s Jake Tapper last week.

“The magnitude of this situation warrants a thorough and comprehensive review,” reads the Senators’ letter to Richard Shelby, the Republican chairman of the committee.

JPMorgan Chase Whistle-Blower Suit Revived by Appeals Court

  • Former manager claims bank violated Sarbanes-Oxley in firing
  • Appeals court overturns judge second time, bank must face suit

A whistle-blower lawsuit claiming JPMorgan Chase & Co. fired a wealth manager for reporting a client’s possible illegal behavior was revived for a second time by a federal appeals court.

The New York court on Monday reversed a judge’s decision to throw out the lawsuit and ordered him to consider the case. Jennifer Sharkey sued in 2010 claiming she was fired as a vice president in J.P. Morgan’s Private Wealth Management Group for investigating allegations that a long-term client might be involved in fraud or money-laundering.

According to Sharkey, she was fired one week after making a formal recommendation that the bank end its relationship with the Israeli client after spending months warning about possible illegal activity. The person wasn’t named in the lawsuit and is referred to in court papers as “Client A.”

Read on.

JPMorgan Chase CEO says he’d love to be president

lol! Yeah, right, raid the U.S. Treasury and taxpayer monies to line your pockets…

(CNN) – One of the biggest names in banking said becoming president of the United States might be a nice title to have.

JPMorgan Chase CEO Jamie Dimon told a meeting of the Economic Club of Washington Monday that he would love to be president.

He said Washington needs thoughtful people and policy to solve America’s problems.

Dimon also credits Republican presidential nominee Donald Trump for proving that businessmen with little to no political office experience can successfully run.

Read on.


Wells Fargo’s CEO to Face Senate Panel in Cross-Selling Scandal

I certainly want to be the fly on the wall  to see Elizabeth Warren grilling Wells Fargo CEO…

  • Step taken after CFPB fines bank for creating fake accounts
  • Senate’s banking panel asks that CEO Stumpf appear to testify

Wells Fargo & Co. Chief Executive Officer John Stumpf was asked to testify in Washington on the bank’s alleged misconduct after it agreed to pay fines over claims that it opened more than 2 million unauthorized accounts. The lender instructed workers in U.S. call centers to temporarily halt cross-selling of financial products.

The Senate Banking Committee plans to hold a hearing Sept. 20 on Wells Fargo, following last week’s enforcement case in which regulators accused bank employees of opening deposit and credit-card accounts without customer approval to meet sales goals. Stumpf is among executives who’ve been asked to appear, a spokeswoman for the committee said Monday.

Read on.

Trump U. Class Says Opt-Outs Shouldn’t Testify

SAN DIEGO (CN) — Former Trump University students suing Donald Trump want to prevent the Republican presidential candidate from cherry-picking positive testimony from a handful of students who opted out of the looming 7,500-member class action.
In an opposition filed Friday, Sonny Low and the other lead plaintiffs in Low v. Trump University claim that long before their 2010 class action case was even certified, Trump “aggressively sought out ‘satisfied’ former students nationwide” who’d be willing to testify about their positive Trump University experience.
Low and the others sued Trump long before he announced his bid for president, claiming they were duped into paying upwards of $35,000 based on the promise that they’d learn insider real estate secrets from instructors “handpicked” by Trump himself.
In Friday’s filing, the students claim Trump launched an “unprecedented, nationwide multimedia campaign” that touted Trump University and condemned its detractors in the hopes of finding willing students to testify on the school’s behalf if the time came. The plaintiffs want the students who opted out of the class action to be barred from testifying during the first phase of the trial.
Out of 7,611 former students in Low and the related, Cohen v. Trump case, only 13 opted out of the class actions, the students say. If Trump wants to call as witnesses eight of the opt-out students — whom he has identified — the plaintiffs say they would have to call 600 former students per opt-out student for the testimony to be a fair ratio.

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Lawyer Asks to Delay First Trump U. Trial

SAN DIEGO (CN) — Despite knowing months ago he may have a scheduling conflict, Donald Trump’s attorney waited until late Monday to request to push back the November trial date for the first Trump University class action case to get its day in court.
Trump’s attorney Daniel Petrocelli asked U.S. District Judge Gonzalo Curiel to push back the post-election trial date in Low v. Trump University currently set for Nov. 28 to either Dec. 12 or Jan. 2, 2017.
Lead plaintiff Sonny Low and others sued Donald Trump and Trump University in 2010 — long before Trump announced his bid for president — on claims they were duped into paying upwards of $35,000 to learn insider real estate secrets from instructors “handpicked” by Trump himself.
In Monday’s filing, Petrocelli cited a conflict as he is also slated to begin trial in a class action against satellite radio giant Sirius XM on Nov. 15. That trial is expected to last seven court days.
Petrocelli says he asked the judge presiding over Flo & Eddie Inc. v. Sirius XM Radio to continue that trial to make way for the Trump University case but U.S. District Judge Philip Gutierrez denied his request.

Read on.

Thousands of complaints suggest account issues are not limited to Wells Fargo

This problem will not go away:

But a look at a database of customer complaints finds that issues of account openings and closings are not limited to that bank — raising at least the possibility that the practice could go on elsewhere. The database, from the Consumer Financial Protection Bureau, shows over 30,000 complaints on the issue of “account opening, closing or management.”

Two senators, in a letter on Monday to CFPB Director Richard Cordray, asked whether the agency has looked into the question of whether the practice goes on at other institutions.
The complaints are against lenders big and small, and, not surprisingly, there are thousands of complaints lodged against the major institutions. Under the “account opening, closing or management” heading, Bank of America BAC, +1.02% had the highest number of complaints, at 4,901, followed by Wells Fargo at 4,450, J.P. Morgan Chase JPM, +0.62% at 3,169 and Citi C, +1.31% at 2,260, a MarketWatch analysis has found.

Representatives of Bank of America and Citi declined to comment, and J.P. Morgan had not returned a message.

After 11 Years And 3 AGs, Ex-AIG CEO Finally Faces Trial

Law360, New York (September 12, 2016, 10:00 PM ET) — More than 11 years after being charged with civil fraud claims by then-New York Attorney General Eliot Spitzer, former American International Group Inc. CEO Maurice “Hank” Greenberg will face trial Tuesday over allegedly sham transactions that reaped tens of millions of dollars in bonuses.

Former AIG CEO Maurice “Hank” Greenberg, pictured, and former AIG Chief Financial Officer Howard I. Smith are both expected to take the witness stand. (Credit: AP) The marathon litigation against Greenberg, 91, and former AIG Chief Financial Officer Howard I. Smith has bounced…

Source: Law360

Grand Jury to Investigate Possible Police Cover-Up in Laquan McDonald Shooting

A special prosecutorannounced on Mondaythat there was enough evidence to convene a grand jury to investigate a potential cover-up by the Chicago Police after the fatal shooting ofLaquan McDonald. Judge LeRoy Martin Jr. announced that a grand jury will convene in the next two weeks to hear evidence surrounding the October 2014 death of McDonald, a black 17-year-old.

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