Daily Archives: April 5, 2017

City of Missoula to pull $2.6M from Wells Fargo accounts

MISSOULA, Mont. (AP) — The Missoula City Commission has voted to pull $2.6 million of the city’s money from Wells Fargo accounts because the bank is invested in the Dakota Access Pipeline and because employees opened fraudulent customer accounts to generate fees and bonuses.

The resolution that passed on 12-0 Monday says the city is committed to conduct business with partners that engage in fair and socially responsible business practices.

Read on.

City of Davenport drafting RFP to move accounts from Wells Fargo

The city of Davenport has started the long process of moving its accounts from Wells Fargo after the financial institution’s national Community Reinvestment Act rating dropped to “needs to improve.”

Finance Director Brandon Wright said the city is drafting a request for proposals for new banking services, which he said would take about 30 days to release, as part of the process that could take up to nine months to move all of city’s funds.

Davenport has more than $50 million in both checking and investment accounts at Wells Fargo, which holds the city’s primary accounts.

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Advisory firm urges Wells Fargo shareholders to oppose 6 board members

A proxy advisory firm is urging Wells Fargo shareholders to vote against the re-election of six directors as the bank faces a contentious annual shareholder meeting this month in the wake of a major sales scandal.

In a report this week, Glass Lewis said four of the directors should go because of their failure to uphold their duties amid the scandal, while the other two should not be elected because they sit on too many boards.

Glass Lewis is one of the major firms that advises institutional investors, such as pension funds, on how to vote their shares regarding directors and other investor proposals. The San Francisco-based bank holds its annual shareholder meeting April 25 in Florida.

In its report, Glass Lewis cites the “reputational damage inflicted on the company” from the scandal that erupted in September. Four of the directors that it opposes – John Baker, Lloyd Dean, Enrique Hernandez and Cynthia Milligan – sit on Wells’ corporate responsibility committee, which showed “failure to properly fulfill its stated duties,” the report says.

Richmond Fed President Jeffrey Lacker resigns, admits to leaking confidential information

And he certainly should have been charged…

Jeffery Lacker, the president and CEO of the Federal Reserve Bank of Richmondand a member of the Federal Open Market Committee, abruptly announced his resignation on Tuesday, revealing himself as the source of a leak of confidential information that spurred investigations by the Department of Justice, the Office of the Inspector General of the Federal Reserve Board, the Federal Bureau of Investigation, the Commodity Futures Trading Commission, and others.

Lacker was already set to retire from the Richmond Fed in October, but said Tuesday that he is resigning immediately due to his role in the leak scandal, which stemmed from confidential information about the Fed’s plans to help support the country’s economic recovery being leaked to Medley Global Advisors in 2012.

Here’s some background on the scandal from the Wall Street Journal:

The leak probe centers on a confidential Sept. 12-13, 2012, meeting of senior Fed officials, when the Fed voted to begin a new effort to spur the economy by buying $40 billion worth of mortgage-backed securities each month. The Fed announced the move after the meetings concluded. It left open the possibility of further stimulus.

The important details of the Fed’s internal deliberations at the September meetings were supposed to be disclosed by the Fed in early October.

Before that happened, The Wall Street Journal published a story reporting that Fed officials at the September meeting were considering further action to stimulate the economy. The Sept. 28 story said there was a “strong possibility” the Fed would begin purchasing large amounts of Treasury bonds.

The next week, Medley sent a research note to its clients saying with more certainty that the Fed was “likely to vote as early as its December meeting” to begin monthly purchases of $45 billion worth of Treasury bonds.

The Oct. 3 Medley note, which came the day before the Fed released the meeting minutes, included confidential details that indicated the information came from inside the Fed.

Read on.

House moves the goalpost to the summer on Dodd-Frank overhaul vote

From the  Wall Street Journal article:

Rep. Patrick McHenry (R., N.C.) said financial regulatory policy could make it to the House floor “when it is warm out…perhaps June, July would be my hope.” The vice chairman of the House Financial Services Committee and Republicans’ chief deputy whip in the House was speaking in an interview with WSJ Pro Financial Regulation.

Dimon calls for regulatory changes in shareholder letter

JPMorgan Chase & Co Chief Executive Jamie Dimon devoted one-third of his annual shareholder letter to arguments for changing regulations, particularly those on bank capital and liquidity, as well as home mortgage loan financing.

Current regulations are inconsistent and have left banks with “too much capital,” some of which could be used to “finance the economy without sacrificing safety,” Dimon said in the 17,349-word letter released on Tuesday.

He also warned that anti-trade policies could be disruptive and geopolitical risks are in a “heightened state.”

Read on.