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Wells Fargo to pay $575 million in settlement with U.S. states

By Reuters

Wells Fargo & Co will pay at least $500 million to settle claims made by U.S. stRead full story

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  • Olivier Sarfati
    Olivier SarfatiHead of Equities at An Investment Firm

    To summarize, Wells Fargo sales practices were beyond inappropriate: several thousand employees misbehaved and opened accounts for customers without their approval. Investors in Wells Fargo were fooled in believing that the bank was good at growing its retail business. Ok, it’s terrible and possibly a consequence of Wells having avoided the GFC and not put their house in order.

    But no one was injured, lost their life savings, or their homes. Separately, the other 250,000 employees or so do a decent

    To summarize, Wells Fargo sales practices were beyond inappropriate: several thousand employees misbehaved and opened accounts for customers without their approval. Investors in Wells Fargo were fooled in believing that the bank was good at growing its retail business. Ok, it’s terrible and possibly a consequence of Wells having avoided the GFC and not put their house in order.

    But no one was injured, lost their life savings, or their homes. Separately, the other 250,000 employees or so do a decent job at underwriting mortgages, and credit lines so that people in America can borrow for their businesses or their lives.

    Should the bank be closed and all the decent, hard working employees be fired? No way, this is fixable and the Regulator is doing a good job at incentivizing change through (hefty) fines.

  • No amount of damages paid can justify defrauding customers and damaging trust in the American financial system. I don’t think jail is the answer, either. An institution that not only allowed, but actually rewarded illegal activities cannot be fixed. Instead of settling lawsuits, I’d argue Wells Fargo should no longer be allowed to exist.

  • The banking industry and fintech have been overrun by predatory business practices. I attribute this to the lack of punishment that followed the 2008 financial crisis. We still have not put any perpetrators of financial malpractice in jail. Predatory behavior is likely to continue and metastasize until there are consequences.

  • William Wood
    William WoodOwner at William Wood

    What I can’t understand, why isn’t someone going to jail. We bailout these banks and they turn around and rob us...

  • Romesh  Jayawickrama
    Romesh Jayawickrama CEO/Founder at BankerBay

    I agree with Roger that despite the catastrophic global effects of the 2008 meltdown, heads haven’t really rolled and nobody’s in jail. These “slaps on the wrists” that the banks are getting hardly get to the core of the problem. I’m not sure what the answer is, but these fines are not enough.

  • Wells Fargo is more of an organized-crime group than a bank at this point. If our justice system worked, they'd have been shut down and the leadership jailed years ago.

  • Edwardoe  Bourkenstein
    Edwardoe Bourkenstein CEO at XUMMIT HOLDINGS, LLC

    Wells Fargo (WFC) has questionably loose standards for a large fiduciary institution. They keep getting fined for issues on the level of fraud. This is that one “run on the banks” that makes total sense. Enough. I’m out!

    White Collar Crimes are, in spirit, intentional harsh crimes against society as a whole and need to be penalized beyond the inexcusable perception of “misbehavior”. Enough!

    This includes activities inside the Beltway, pointing directly at participating attorneys, who also need

    Wells Fargo (WFC) has questionably loose standards for a large fiduciary institution. They keep getting fined for issues on the level of fraud. This is that one “run on the banks” that makes total sense. Enough. I’m out!

    White Collar Crimes are, in spirit, intentional harsh crimes against society as a whole and need to be penalized beyond the inexcusable perception of “misbehavior”. Enough!

    This includes activities inside the Beltway, pointing directly at participating attorneys, who also need to be held equally accountable (akin to Bernie Madoff) for COLLUDING in the immoral, parametric paper structuring of lobbyist-driven deals with our more public officials, who also need to have the fear of God injected into their souls.

    All involved are greedily benefiting from the mandated proceeds extracted from the small checks of millions of hard-working American citizens, who rarely get to enjoy the amazing benefits of our beloved country with their time, sweat and talents in exchange for pennies on the dollar.

    Enough!

  • JD Carpenter
    JD Carpenter

    They need to be shut down

  • In 2008, Wells Fargo doubled in size due to acquiring all the medium to small banks that went under in the financial crisis. These banks had terrible ethics and that’s why they went under. These terrible ethics infected Wells Fargo and led to the recent scandals.

    When Wells Fargo was smaller, before 2008, it used to have old-fashioned ethics, but the opportunity and greed of the financial crisis bargain sale proved to be the undoing of the big bank.

    Hyperbole about Wells Fargo, because they’re

    In 2008, Wells Fargo doubled in size due to acquiring all the medium to small banks that went under in the financial crisis. These banks had terrible ethics and that’s why they went under. These terrible ethics infected Wells Fargo and led to the recent scandals.

    When Wells Fargo was smaller, before 2008, it used to have old-fashioned ethics, but the opportunity and greed of the financial crisis bargain sale proved to be the undoing of the big bank.

    Hyperbole about Wells Fargo, because they’re an easy target doesn’t really make sense. It’s really a tragedy and the initial core of Wells Fargo has been naive in their lack of vetting their acquisitions.

  • John Brinckman
    John BrinckmanRetired Trial Attorney

    As much as we proclaim to hate the policy of "catch and release" when it comes to immigration, we practice it regularly when it comes to Bank crimes committed by the Banking Executives. It's like we Praise our White Collar Criminals. This needs to stop.

  • Helen Hoefele
    Helen HoefeleBlogger at HelenHoefele.com

    Yet they can afford to stay in business. I guess those transgressions were worth it to their executives. Sad that so many workers and consumers had to suffer so much at the expense of people they trusted.

  • Max Lockie
    Max LockiePlatform Editor at Quartz

    The frauds that this suit covers are bad but in my opinion the "computer glitches" that kicked people out of their homes are far worse.

  • D.A. Wallach
    D.A. WallachproRecording Artist & Investor

    Scum bags!!!

  • But crypto’s a scam...SMH 🤦🏼‍♂️

  • d carter
    d carter

    Had the normal course of business happened in 2008 all those banks to big to fail should have been broken up and sold to whom ever had the money.

  • Lora Carnahan
    Lora Carnahan

    Yet again caught and fined. I’m pretty sure the slap on the wrist fines are now just part of their business plan. Just factored in with all the other pesky inconveniences of robbing people to get their enormous slice of the pie. Business as usual in our Corporate Democracy. Pathetic

  • paul saffioti
    paul saffioti

    Customers get scammed, states and lawyers get the money. Customers get scammed again

  • Harry  Van Wickle
    Harry Van Wickle

    Roger McNamee’s comments are dead on. A lack of accountability allowed by the SEC and banking regulators hurts us all. Elon Musk recently commented on his lack of respect for the SEC. I get it. Where were they in 2008 and since as it relates to the meltdown. Wells has had their hands slapped, that’s all.

  • Bob Sutton
    Bob Sutton

    Employees were clearly rewarded for illegal behavior. They were coach to do this. The coaches and ultimately CEO should do jail time. It’s fraud. Maybe even racketeering. Then the bank should be split up not closed. Smaller segments new ownership new name hopefully better ethics. Hard to see this happening with the current Administration in the White House. The department of justice should go after these people ruthlessly.

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