Daily Archives: September 14, 2016

Is Wells Fargo scandal just the beginning of big-bank bad-behavior probe?

CFPB director: “We will be looking for these types of problems”

A quick search through the Consumer Financial Protection Bureau’s public consumer complaint database produces some alarming results that raise the question, “Is Wells Fargo’s cross-selling scandal over and is it really limited to only one bank?”

There are approximately 94 public results for complaints on Wells Fargo about unsolicited credit cards since the database began accepting complaints when the bureau opened its doors in July 2011 (The CFPB fined Wells Fargo for secretly opened deposit and credit accounts under existing customers’ names without their knowledge from May 2011 to July 2015.)

However, the database does not make public every complaint it receives, only publishing consumer’s description of what happened if the consumer opts to share it and after taking steps to remove personal information.

According to the CFPB, “Complaints are listed in the database after the company responds or after they’ve had the complaint for 15 calendar days, whichever comes first.”

Read on.

Republican plan to abolish Dodd-Frank passes committee, full House vote coming

The Republican-crafted plan to repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act is one step closer to reality after the House Financial Services Committee voted Tuesday to pass the Financial CHOICE Act.

The Financial CHOICE Act, introduced earlier this year by House Financial Services Committee Chairman Rep. Jeb Hensarling, R-TX, would replace Dodd-Frank with a “pro-growth, pro-consumer” alternative that would end “too-big-to-fail bailouts, bring significant reforms to the Consumer Financial Protection Bureau, and provide some regulatory relief for certain financial institutions.

The bill passed out of the House Financial Services Committee Tuesday by a vote of 30-26 and will now move to a full vote in the House of Representatives.

An article on the subject from the Wall Street Journal suggests that the bill is “likely” to pass a full House vote but “isn’t likely to get traction” in the Senate.

Read on.

Wells Fargo CEO John Stumpf says he will not resign

Of course Stumpf won’t resign.After all, Stumpf has a large compensation salary and stocks and hold two titles: Chairman and CEO.

Wells Fargo CEO John Stumpf on alleged abuses: ‘I am accountable’  5 Hours Ago | 15:24

Wells Fargo CEO John Stumpf says he holds himself accountable for the alleged abusive account opening practices for his company, but does not plan to resign from his position.

“I think the best thing I could do right now is lead this company, and lead this company forward,” he told Jim Cramer in an interview on “Mad Money” on Tuesday.

Read on.

If ever there’s a case for clawbacks, Wells Fargo is it: Ex-FDIC chair

Wells Fargo has not done enough to address the problems brought to light in its $190 million settlement over secret accounts, former FDIC Chair Sheila Bair told CNBC on Tuesday.

“If you’re going to use clawbacks, this would be the situation,” Bair said, referring to possibly recouping any compensation fired employees received as a result of creating fee-generating accounts for unsuspecting customers in order to reach sales and bonus targets.

According to Fortune, Carrie Tolstedt, the Wells Fargo executive in charge of the unit where employees opened more than 2 million largely unauthorized customer accounts, retired over the summer with an exit package worth $124.6 million.

Read on.

Wells Fargo is eliminating retail sales goals after settlement over aggressive tactics

Wells Fargo & Co. said Tuesday that it would eliminate all sales goals for credit cards, checking accounts and other retail banking products as the financial giant tries to repair its image following a $185-million settlement over aggressive sales tactics.

The announcement by Chief Executive John Stumpf came as the Senate Banking Committee said Monday that it would hold a hearing next week on Wells Fargo’s sales practices, which pushed thousands of employees to open as many as 2 million accounts without customers’ authorization.

Read on.

New York AG to Investigate Donald Trump’s Nonprofit

New York’s attorney general, Eric T. Schneiderman, announced Tuesday that his office was looking into Donald J. Trump’s nonprofit foundation, which is facing intense criticism in light of a political donation it made in support of the Florida attorney general.

Mr. Schneiderman said his office was seeking to determine whether the charity had been in compliance with state laws. Mr. Trump’s campaigndisclosed this month that he had paid a $2,500 penalty to the Internal Revenue Service because the 2013 contribution in Florida was sent from his nonprofit foundation, in violation of tax regulations.

Mr. Schneiderman did not give specifics of the extent of his office’s investigation but told CNN, “We have been concerned that the Trump Foundation may have engaged in some improprieties.”

Read on.