Daily Archives: November 11, 2016

Wells Fargo CEO says bank changing handling of whistleblower complaints

Wells Fargo & Co (WFC.N) Chief Executive Officer Tim Sloan told workers on Thursday the bank was changing the handling of whistleblower complaints after allegations it retaliated against employees who called an ethics hotline to report sales abuses.

Sloan announced the change to a gathering of about 2,000 employees in Des Moines, Iowa, as part of a “conversations tour” he and other executives are making to try to restore employee morale following the bank’s recent sales practices scandal.

Sloan, who took over as CEO of San Francisco-based Wells Fargo last month, did not detail how whistleblower complaints will now be handled, but said the bank was also reviewing allegations of retaliation against staff.

Read on.

Trump’s Transition Team Pledges to Dismantle Dodd-Frank Act

President-elect Donald Trump is translating some of his populist campaign rhetoric into policy statements, including the contention that the Dodd-Frank Act should be scrapped because it has made Wall Street banks an even bigger threat to the nation’s economy and working families.

After the government’s answer to the 2008 financial crisis, the “big banks got bigger while community financial institutions have disappeared at a rate of one per day, and taxpayers remain on the hook for bailing out financial firms deemed ‘too big to fail,’” says a statement posted on Trump’s official transition website. “The Financial Services Policy Implementation team will be working to dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation.”

U.S. bank stocks climbed for a second straight day on Thursday as investors bet a Trump presidency will lead to less regulation and sideline industry critics in Congress led by Senator Elizabeth Warren.

The 24-company KBW Bank Index advanced 3 percent at 3:16 p.m. in New York, led by Wells Fargo & Co., which rose 7.4 percent. Bank of America Corp. advanced 4.5 percent, while JPMorgan Chase & Co. climbed 4.4 percent.

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Russia Says It Was In Touch With Trump Campaign During The Election

MOSCOW, Nov 10 (Reuters) – The Russian government was in touch with members of President-elect Donald Trump’s political team during the U.S. election campaign and knows most of his entourage, one of Russia’s most senior diplomats told the Interfax news agency on Thursday.

Accused by defeated Democratic contender Hillary Clinton of being a puppet of President Vladimir Putin after praising the Russian leader, Trump has dismissed suggestions he had anything to do with the Russian government during the campaign.

But in comments that could prove politically awkward for the president-elect, Russian Deputy Foreign Minister Sergei Ryabkov said there had indeed been some communications.

“There were contacts,” Interfax cited Ryabkov as saying. “We are doing this and have been doing this during the election campaign.”

Such contacts would continue, he added, saying the Russian government knew and had been in touch with many of Trump’s closest allies. He did not name names.

“Obviously, we know most of the people from his (Trump’s) entourage. Those people have always been in the limelight in the United States and have occupied high-ranking positions,” he said.

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Time To Clean House: DNC Staffer Screams At Donna Brazile For Helping Elect Donald Trump

 

WASHINGTON ― On Thursday, Democratic Party officials held their first staff meeting since Hillary Clinton’s stunning loss to Donald Trump in the presidential race. It didn’t go well.

Donna Brazile, the interim leader of the Democratic National Committee, was giving what one attendee described as “a rip-roaring speech” to about 150 employees, about the need to have hope for wins going forward, when a staffer identified only as Zach stood up with a question.

“Why should we trust you as chair to lead us through this?” he asked, according to two people in the room. “You backed a flawed candidate, and your friend [former DNC chair Debbie Wasserman Schultz] plotted through this to support your own gain and yourself.”

Some DNC staffers started to boo and some told him to sit down. Brazile began to answer, but Zach had more to say.

“You are part of the problem,” he continued, blaming Brazile for clearing the path for Trump’s victory by siding with Clinton early on. “You and your friends will die of old age and I’m going to die from climate change. You and your friends let this happen, which is going to cut 40 years off my life expectancy.”

Zach gathered his things and began to walk out. When Brazile called after him, asking where he was going, he told her to go outside and “tell people there” why she should be leading the party.

Two DNC staffers confirmed the exchange.

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Trump Presidency Could Be Worth $14 Billion to His Troubled Lender, Deutsche Bank

DONALD TRUMP’S ELECTION has likely given a massive lifeline to Deutsche Bank, the German financial firm that has been rocked recently by rumors that they would have to pay a $14 billion fine to the Justice Department over crisis-related mortgage abuses.

That money is unlikely to ever be imposed, now that one of Deutsche Bank’s biggest borrowers – Trump – will soon be sitting in the White House.

That conflict of interest is one of the innumerable ones facing Trump as he leaves his life of grifting behind and becomes the nation’s chief executive. While the Justice Department is nominally independent of the White House, I had to stop writing this sentence because of constant laughing. Trump could easily move to protect his personal investments by aiding his business partner Deutsche Bank.

After going through virtually every bank in the world to finance his many projects, Trump settled on Deutsche Bank as a lender of last resort. The private bank division of the firm has lent Trump $364 million in mortgageson his Doral golf club in Miami and hotels in Chicago and Washington, D.C., in the last few years, and at least $2.5 billion to Trump’s affiliated businesses since 1998, with another $1 billion in loan guarantees. The recent loans on the three properties all come due before 2024, but they could be re-negotiated, as is common with commercial loan enterprises.

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President-elect Trump Demands New Trump U Trial Delay

Trial starts Nov. 28…

SAN DIEGO (CN) – President-elect Donald Trump wants a federal judge to again delay the first of two class actions against his now-defunct real estate school Trump University until sometime next spring.

Trump’s lead attorney Daniel Petrocelli told U.S. District Judge Gonzalo Curiel at a hearing Thursday he would file the delay request within the next few days. Petrocelli said since Trump only has 70 days to prepare to be sworn in as President of the United States, he wants Curiel to delay the trial until February or March.

Petrocelli had requested a February 2017 trial date months ago, which Curiel denied. The judge intentionally set the trial for after the election but before inauguration to accommodate a potential President-elect Trump.

Curiel asked Petrocelli “head on” if they would be requesting a four-year or even eight-year delay of the trial. Petrocelli denied that, saying they were “not proposing the case be put off indefinitely, but until early next year.”

“There has never been a case where a sitting president has had to testify in a personal case against him,” Petrocelli told the judge.

Curiel reminded Petrocelli “that’s what we’re trying to avoid” by having the case go to trial before Trump is inaugurated.

Given Curiel’s accommodation of Trump’s schedule the past year as he campaigned for president – moving hearings and the trial date – and Curiel’s resolve to see the 6 ½ year old case to a resolution, it seems unlikely the judge will grant Trump’s request to delay the trial.

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Future Of Dodd-Frank Uncertain Under Trump

Law360, New York (November 10, 2016, 1:58 PM EST) — President-elect Donald Trump has publicly said he’d like to eliminate the Dodd-Frank Act that established more oversight of the financial industry, but because he hasn’t given many specifics, experts say they’re not sure what provisions he wants to eliminate or what, if anything, would take its place.

Ultimately, any action is going to come down to where banking and securities regulations fall on Donald Trump’s list of priorities. (AP) What is certain is that congressional Republicans have long had Dodd-Frank in their cross-hairs. These legislators may…

Source: Law360