In a story that sounds suspiciously similar to another report published by Reuters roughly two weeks ago, the Wall Street Journal said Thursday that Wells Fargo is nearing a $1 billion settlement on its risk management with the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency; that would be the largest fine ever levied by the CFPB. The deal could be announced as soon as tomorrow, the WSJ said, citing an unspecified number of "people familiar with the matter."
For the Warren Buffett's favorite scandal-plagued bank, the settlement won't just be a monetary punishment, but also the latest public reminder of its myriad criminal misdeeds.
What's worse, it would also come with increased oversight of how the bank - which was officially chastised by the Fed in Janet Yellen's last action as Fed chair - compensates its employees. The latter issue appears to be a reaction to the bank's unusual incentives system, which employees said had encouraged them to open millions of fraudulent accounts during the Wells' now-infamous cross-selling scandal.
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6 comments:
These silly "fines" on banks are actually the very technique used to steal funds from the bank's coffers.
Think about WHO gets the money?
The US Government, i.e. the Financiers of the Campaigns.
The bankers themselves.
Nothing the stock holders can do about it.
Facism is the merger of corporate interests with government power.
It opens the door for looting of both the public treasuries and the corporations' reserves.
11:11 Very good point.
Why not redistribute the fines back to those who were harmed. after all, the Fed's weren't harmed here.
But, it is about time the Fed took WF to the woodshed!
The little people won't see a penny of it. It will all disappear into the fed coffers and lawyers' pockets.
too big to fail.....
12:01 is right! when consumers are abused the money goes to fines and is paid to the government. The one's harmed see nothing
The government does not work for the consumers / citizens.
It works for the very bankers themselves.
They tell the Congress and POTUS what to do and when to do it.
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