Daily Archives: January 24, 2017

Whistleblowers Can Pose Real Challenge to Trump

NEP’s Bill Black and Norman Soloman join TRNN’s live inauguration coverage to discuss the criminogenic environment that will thrive under the Trump administration as well as its unprecedented conflicts of interest.

Peoples Bank benefiting from Wells Fargo scandal


Peoples Bank also tells the Bellingham Business Journal their business is booming, due in part, to a banking scandal.

When some Wells Fargo customers learned about that company’s bankers opening fake accounts without customers’ knowledge, they walked – literally across the street.

Read on.

Wells Fargo admits to signs of worker retaliation

After Wells Fargo admitted last fall to creating as many as 2 million fake accounts, nearly half a dozen former employees told CNNMoney they were retaliated against after they tried to stop these illegal sales tactics.

Now, Wells Fargo says it has found evidence that at least some of these whistleblowerretaliation claims published by CNNMoney and elsewhere may have merit.

Wells Fargo (WFC) CEO Tim Sloan said last week in a town hall meeting that the bank has reviewed all reports made by its employees to the confidential ethics line over the past five years where the callers identified themselves. That was roughly 40% of callers to the hotline.

Read on.

CFPB fines CitiFinancial Servicing and CitiMortgage $29 million

The Consumer Financial Protection Bureau hit CitiFinancial Servicing andCitiMortgage with enforcement actions over how both companies handled borrower foreclosures.

CitiMortgage must pay an estimated $17 million to compensate wronged consumers, and pay a civil penalty of $3 million. CitiFinancial Services must pay approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million. In total, both banks will pay $28.8 million.

Read on.

Societe Generale fined $50 million for pre-crisis RMBS fraud

As the Obama administration prepared to clean out its collective desks last week, the government announced that it wasn’t quite done dealing with with the events that led to the financial crisis.

In those last few days, the Obama administration announced multi-billion dollar settlements with two foreign banks, Deutsche Bank and Credit Suisse, for each bank’s mortgage securitization practices leading up to the housing crisis.

Read on.

Democratic state AGs join fight to save CFPB from Trump

The embattled Consumer Financial Protection Bureau, which top Congressional Democrats recently pledged to defend against potential attacks from the Trump administration, has more defenders in its corner now, as more than a dozen state attorneys general are joining the fight to protect the CFPB.

According to multiple reports, including Reuters and The National Law Journal, the attorneys general of Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont and Washington, as well as the District of Columbia are seeking to intervene in the legal battle between the CFPB and PHH over the constitutionality of the CFPB.

Read on.

Another scandal: Wells Fargo accused of falsely overcharging mortgage borrowers

Wells Fargo, the largest mortgage lender in the country, portrays itself as a stalwart bankthat puts customers first. That reputation shattered in September, when it was fined $185 million for illegally opening as many as 2 million deposit and credit-card accounts without customers’ knowledge.

Now four former Wells Fargo employees in the Los Angeles region say the bank had another way of chiseling clients: Improperly charging them to extend their promised interest rate when their mortgage paperwork was delayed. The employees say the delays were usually the bank’s fault but that management forced them to blame the customers.

The new allegations could exacerbate the lingering damage to the bank’s reputation from the fictitious accounts scandal. Last week, Wells Fargo reported declining earnings. In the fourth quarter, new credit card applications tumbled 43 percent from a year earlier, while new checking accounts fell 40 percent.

Read on.

Citigroup : fined $28.8 million for harm to home borrowers

Citigroup Inc (>> Citigroup Inc) mortgage units have been fined $28.8 million for keeping home borrowers in the dark about options to avoid foreclosure and making it difficult for them to apply for relief, the U.S. consumer finance watchdog said on Monday.

CitiMortgage will pay an estimated $17 million to compensate wronged consumers, as well as a civil penalty of $3 million, the Consumer Financial Protection Bureau said. CitiFinancial Services will refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million.

Read on.