Daily Archives: September 23, 2016

Wells Fargo CEO Resigns From Fed Advisory Council As Pressure Mounts

  • Stumpf was San Francisco Fed appointee to advisory group
  • Move comes after senators urge rejection of his reappointment

Wells Fargo & Co. Chief Executive Officer John Stumpf resigned from the Federal Reserve’s Federal Advisory Council as U.S. lawmakers stepped up pressure after revelations that the bank’s employees had opened two million allegedly bogus client accounts.

Stumpf had served as the San Francisco Fed’s appointee to the panel, which is made up of 12 bank representatives and consults with and advises Fed Board of Governors. Its members customarily serve three one-year terms.

“John made a personal decision to resign as the Twelfth District’s representative to the Federal Advisory Council,” Mark Folk, a Wells Fargo spokesman, said in an e-mailed statement Thursday. “His top priority is leading Wells Fargo.”

Read on.

Senators want Labor Department investigation of Wells Fargo

Sanders, Warren, others question whether bank “aggressively skirted” labor laws

 

Housingwire:

In a letter sent to Tom Perez, the Secretary of Labor, Sen. Elizabeth Warren, D-Mass, who made nationwide headlines with her heated questioning of Stumpf, along with Sen. Bernie Sanders, I-Vermont; Sen. Bob Menendez, D-New Jersey; Sen. Sherrod Brown, D-Ohio; Sen. Jack Reed, D-Rhode Island; Sen. Jeff Merkley, D-Oregon; Sen. Kirsten Gillibrand, D-New York; and Sen. Mazie Hirono, D-Hawaii, state that they want further investigation into Wells Fargo.

The senators state that the investigation into Wells Fargo conducted by the city of Los Angeles, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau uncovered an environment where employees were subjected to “stringent sales quotas and aggressive incentives, coupled with “staggering neglect by management of the obvious consequences to consumers of those quotas and incentives.”

Senator Warren Calls Out the DOJ – They Ignored 11 Congressional Commission Criminal Referrals!

Senator Elizabeth Warren (D-MA), Member of the Senate Banking Committee and Ranking Minority Member of the Sub-Committee on Economic Policy, wrote two highly provocative letters this last week requesting a formal investigation into why President Obama’s administration has not brought criminal charges against the individuals and corporations involved in the 2007-2008 financial crisis.
According to Bloomberg, Senator Warren says that the Financial Crisis Inquiry Commission (FCIC) clearly believed there was enough evidence to prosecute them, and sent many criminal referrals to the Department of Justice, so she wants to open up investigations to better understand why that never happened.
“The Department has failed to hold the individuals and companies accountable,” she wrote. “This failure requires an explanation.” Her letter to FBI Director James Comey asked that he “release records of the FBI investigations into financial misdeeds in the wake of the crisis, to further illuminate why the Obama administration decided not to prosecute firms linked to the financial crisis.”
A three-page letter to FBI Director James Comey, and a twenty page one to DOJ Inspector General Michael Horowitz,  demanded an answer to why the Department of Justice (DOJ) has yet to prosecute any of the major players responsible for the 2008 financial crisis.
Applauding her demand for an investigation into why the referrals were not followed up, is Phil Angelides who had chaired the FCIC. “This is in the public interest,” he told Avi Asher-Shapiro of International Business Times. “We need to see if there was a fair investigation into what was happening on Wall Street.”
Regards,
Richard