U.S. Congress dives into Wells Fargo case, panel to hold hearing
Sep 27 2016 by Johnny Bowman
It marked a significant shift by Wells Fargo, which prides itself on "cross selling" customers as many "products" - like checking accounts and debit cards - as possible.
It reveals the one person who, more than anyone else, appears to have personally benefited from Wells Fargo's massive fraud. The elimination of the sales goals, effective January 1, follows instructions from the lender to US call center workers to temporarily halt cross-selling of financial products.
"When I hear people say we want to roll back the statute that created the consumer protection bureau, this is another proof point it was the right thing to create", he said.
In all, over two million accounts were falsified, and the incredible growth in her division was falsified. Fortunereported on Monday that the executive who head of the division that at the center or the settlement, Carrie Tolstedt, left the bank in July with almost $125 million in stock, options and restricted shares.
But Stumpf said Wells Fargo is not abandoning this emphasis. The Chief Financial Officer at Wells Fargo, John Shrewsberry, said approximately 10 percent of the employees let go were branch managers or higher.
Wells Fargo has acknowledged that it fired 5,300 employees over a five-year period related to improper sales practices.
Forget about the $185 million fine Here's something that really stings: Wells Fargo just lost the title as the most valuable USA bank for the first time in three years. The ratio hovers around six, which means every customer of Wells Fargo has on average six different types of products with the bank.
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Wells Fargo itself seems to have tacitly acknowledged that fake accounts may have been a big problem earlier than the 2011. Also, three customers in Utah have filed a lawsuit against the bank for fraud, breach of contract and invasion of privacy.
Clinton's position was made clear in late August with her insistence that she would "veto any effort to weaken Wall Street reform".
Also of note: The executive who headed that specific department within Wells Fargo will leave the company at year's end with $125 million in her pocket along with glowing praise from the CEO.
In some cases, Wells Fargo employees even created fake email addresses to sign up customers for online banking services, regulators said.
The bank's practices have also drawn scrutiny from Washington, with staff members for the Senate Banking Committee, which oversees the banking industry, set to meet with representatives of the bank.
The CFPB ordered Wells Fargo to pay $100 million and the Office of the Comptroller of the Currency, another federal regulator, issued a $35 million fine. Then they use those funds to lend to other customers.
Torrie Matous, a spokeswoman for the committee's chairman, Richard Shelby, a Republican from Alabama, said staff has "been arranging briefings and collecting information from both Wells Fargo and the regulators" to prepare for a hearing on September 20.