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Posts Tagged ‘bank fiascos

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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Ongoing internal investigation and disciplinary actions at Wells Fargo

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October 2016 photo at Wells Fargo’s museum in San Diego by James Ulvog.

The Wells Fargo fake account fiasco doesn’t seem to be generating any more major headlines. Still some notable news if you go several pages into the second section of the WSJ. Also, the WF living trust plan got a failing grade.

2/21/17 – MarketWatch – Wells Fargo fires 4 managers as part of investigation into sales scandal – Titles of fired senior managers shows decent level of seriousness in accountability:

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Written by Jim Ulvog

March 15, 2017, 8:13 am at 8:13 am

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Credit Suisse under investigation. Again. For money laundering. Again.

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A different type of money laundering. Image courtesy of Adobe Stock.

A different type of money laundering. Image courtesy of Adobe Stock.

Looks like Credit Suisse is in trouble again. The feds and NYDFS have opened another money laundering investigation.

Check out the report on 2/23 at Wall Street Journal – Credit Suisse Probe Opens Old Wounds for the following info.

A retired professor invested $500K in a startup back in 2000. When the company went public in 2008, his shares were worth $80M.

Cool!  Good for him!

He didn’t want to share a lot of that with Uncle Sam, so he got some help from the Israel branch of Credit Suisse to cut his tax bill.

By 2013 he had $200M parked in his accounts in Switzerland.

Well, somehow the revenuers caught up with him.

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Written by Jim Ulvog

February 24, 2017, 6:00 am at 6:00 am

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Efforts continuing to clean up fake account fiasco at Wells Fargo

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October 2016 photo at Wells Fargo's museum in San Diego by James Ulvog.

October 2016 photo at Wells Fargo’s museum in San Diego by James Ulvog.

There haven’t been a lot of high-profile articles about the Wells Fargo fake account fiasco recently. I’ve noticed a number of articles though, which suggest there is ongoing activity addressing the intentional, systemic failure. This disaster will not be cleared up soon.

  • How does Wells fix the indirect harm it caused?
  • New compensation plan removes cross-selling as a benchmark
  • Possible MD&A enforcement action?
  • Branches received 24 hour notice of internal inspections
  • Bank may eliminate 2016 bonuses for senior staff

12/27/16 – Wall Street Journal – Wells Fargo Is Trying to Fix Its Rogue Account Scandal, One Grueling Case at a Time – Making customers whole will be easy if the customer was only charged a few dollars a month for a while. Still simple to resolve if there were monthly charges and a bunch of overdraft fees because money was taken out of an account unknowingly which resulted in some bounced checks.

What do you do when the unpaid fees on a credit card flowed into negative information on a credit report which resulted in a customer being denied funding for a home loan somewhere else? That’s what happened to one interviewed customer.

Destroying someone’s credit is a tough thing to make right.

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Written by Jim Ulvog

February 13, 2017, 9:14 am at 9:14 am

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Minor updates on Wells Fargo fiasco

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Concord stage coach at Wells Fargo museum in San Diego. Photo by James Ulvog.

Concord stage coach at Wells Fargo museum in San Diego. Photo by James Ulvog.

Not a lot of news in the last few days about the Wells Fargo new account fiasco, but there are a few pieces of information.

12/12 – Reuters – Prudential stops distribution of policies sold through Wells Fargo – With the increased attention on the low-cost life insurance product from Prudential, called MyTerm, which was sold by Wells Fargo, the insurance company suspended sales of the product through the bank.

Article says that separately Wells Fargo suspended sales of renters insurance that goes through a different insurance company.

The California Insurance Commission has opened an investigation of the product sales.

Article says the California regulators says the New Jersey insurance regulator has also opened an investigation. Reporter cannot get confirmation from the New Jersey regulator.

12/16 – Francine McKenna at MarketWatch – Prudential allegations complicate Wells Fargo’s work with new partnersRead the rest of this entry »

Written by Jim Ulvog

December 16, 2016, 9:37 am at 9:37 am

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