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Posts Tagged ‘bank fiascos

Updates on the wide range of fiascos at Wells Fargo

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Concord stage coach, from the days when Wells Fargo was the gold standard of honesty and integrity. Photo at Wells Fargo’s San Diego museum by James Ulvog.

Range of issues in Wells Fargo have grown in the time since I last described their internal disasters.

Here is an overview of the last two years:

Some money returning to Wells

3/1/19 – Reuters – Wells Fargo officials enter $240 million settlement over bogus accounts – Article says the insurance companies representing 20 Wells execs and directors (tally includes current and former staffing) have reached a settlement to pay the bank $240M collectively. This is compensation for the damage caused by the fake account fiasco.

Plaintiff lawyers assert this is the largest derivative lawsuit settlement in the U.S. Article does not say what cut the lawyers get.

Additional settlements and new fiascos

12/28/18 – Wall Street Journal – Wells Fargo to Pay States About $575 Million to Settle Customer Harm Claims – Settlement with 50 states plus District of Columbia is for the fake account, improper auto loan fees, and improper mortgage & life insurance ad-on fees.

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Written by Jim Ulvog

January 3, 2020, 7:00 am at 7:00 am

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Getting caught up on the cost of big bank fiascos – part 2

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Interior of Concord stage coach, Three people sat on each of the two benches round the clock, for many days, getting out to stretch their legs and grab a bite to eat only during a swap of horses. Photo at Wells Fargo’s San Diego museum by James Ulvog.

Previous post mentioned I’ve fallen far behind on covering the fines and penalties on the big banks for their massive fiascos.

Here is a list of some messes happening since I was last discussing their messes:

11/19/18 – Reuters – Société Generale to pay $1.4 billion to settle cases in the US – French bank agreed to $1.34B fine for laundering money to Cuba and other countries on the prohibited list. Paid an additional $95M other anti-money laundering violations.

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Written by Jim Ulvog

December 20, 2019, 7:20 am at 7:20 am

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Getting caught up on the cost of big bank fiascos – part 1

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Close up of stage coach. Strong box would be stored behind driver’s feet. Photo at Wells Fargo’s San Diego museum by James Ulvog.

For well over a year and a half lots of life has been happening to me. Have had to set priorities on what I can and cannot do, which means I’ve not been focusing on the ongoing fiascos and foolishness and waste as the big banks get caught with a never ending list of laws they have violated in stupendously spectacular ways.

Yet another in a string of money laundering settlements hit the news yesterday which drew my attention. So, I’ll try to do a little catch-up on the billions of stockholder dollars the big money banks have been continually throwing on the bonfire over the last two years.

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Written by Jim Ulvog

December 11, 2019, 9:49 am at 9:49 am

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Fed imposes stiff sanctions on Wells Fargo

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Photo at Wells Fargo San Diego museum in January 2018 by James Ulvog.

The Federal Reserve will prohibit Wells Fargo from growing in size past its $1.95 trillion asset base in place as of 12/31/17. That means any gains from new deposits must be offset by selling off other assets and liquidating some liabilities.

In addition, the bank will be replacing three directors by April who previously announced their retirement and replacing another director by December 2018.

Article at Wall Street Journal by Ryan Tracy and Emily Glazer, Wells Fargo’s Growth Will Be Limited, Directors to Be Replaced After Fed Cites “Abuses”, provides more details.

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Written by Jim Ulvog

February 5, 2018, 7:21 am at 7:21 am

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Wells Fargo staying in the headlines.

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

When I look at the news about Wells Fargo over the last few months, it is amazing to see the number of individual messes the bank has and the amount of time it is taking to get past the issues. Also odd is that new issues are surfacing every month or two. Here are a few articles that I notices in the last month:

8/15/17 – Emily Glazer at Wall Street Journal – Wells Fargo Elevates Former Fed Governor Elizabeth Duke to Chairman Role – As was previously expected (and reported by Ms. Glazer), the bank will replace its current board chair with the former Federal Reserve governor.  This is not as big a deal as it would otherwise seem. The current board chair would have hit the bank’s mandatory retirement age four months later anyway.

8/18 – Reuters – Wells Fargo troubles shift from phony bank accounts to real ones – The bank disclosed yet another problem in regulatory filings, explaining the Consumer Financial Protection Bureau is looking at the bank improperly closing real accounts.

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Written by Jim Ulvog

September 11, 2017, 8:09 am at 8:09 am

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Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 2

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

I have accumulated a long list of articles on the mess Wells Fargo has create for itself. Here is the rest of the articles I’ve gathered in the last few months, including two new fiascos. Previous list of articles I’m catching up on are found here.

7/23/17 – Wall Street  Journal – Wells Fargo Discloses Accidental Client-Data Release – Oops.

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Written by Jim Ulvog

August 16, 2017, 6:58 am at 6:58 am

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Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 1

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

I’ve been sitting on a string of articles describing the mess Wells Fargo has created for itself by opening accounts without customers’ permission. That issue keeps hanging around like a bad hacking cough.

At the same time some new fiascos have surfaced.

It is time to get caught up, so here are some articles I saw a few months ago:

4/4/17 – Wells Fargo advertisement in Wall Street Journal – The bank published a full-page public letter from the CEO.

He describe the steps taken by the bank to make things right. I will paraphrase or nearly quote the steps:

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Written by Jim Ulvog

August 12, 2017, 8:30 am at 8:30 am

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