Daily Archives: October 26, 2016

DC settles lawsuit against Bank of America over fraud

WASHINGTON (AP) – The District of Columbia government has settled a lawsuit filed against Bank of America for its role in a long-running embezzlement scheme involving a city tax office employee.

Attorney General Karl Racine announced the settlement of the 8-year-old case on Tuesday. He says Bank of Americahas agreed to pay $13 million to the District.

The city sued Charlotte, North Carolina-based Bank of America in 2008, arguing that the bank’s lax oversight allowed Harriette Walters to deposit $34 million worth of fraudulent tax refund checks. An assistant branch manager pleaded guilty to his role in the scheme. Walters is serving a 17-year prison sentence.

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New Wells Fargo CEO to employees: ‘We’re sorry’

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Yeah, he’s sorry that the bank got caught red handed…

Newly appointed Wells Fargo CEO Tim Sloan has told employees that he is “sorry for the pain” that the bank’s employees have felt as a result of the company’s sales practices scandal.

Sloan’s company-wide speech given Tuesday is the latest effort by Wells Fargo’s executives to atone for the fact that the bank’s employees, pushed by impossible sales goals, opened as many as 2 million bank and credit card accounts without customers’ authorization.

In the speech, Sloan acknowledged that the bank did not respond to the problems in its branches soon enough and that upper management dodged responsibility for the bad behavior and wrongly placed blamed on its branch employees.

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More Wells Fargo fallout: Feds to look into sales practices at other Wall Street banks

From Bloomberg:

Wells Fargo’s largest competitors have received regulators’ formal requests for information and have been preparing for their practices to be scrutinized by examiners in the coming days, said the person, who requested anonymity because the process isn’t public.

CFPB Director Richard Cordray said his agency will “follow up aggressively” with the rest of the industry, but indicated at the Senate hearing that he doesn’t expect to find the same level of problems as at Wells Fargo, where employees were pushed to open multiple accounts for customers.

“Wells Fargo bank no doubt was the industry leader in aggressively cross-selling products, which led in part to the extreme circumstances we find here,” he said to lawmakers.