Sen. Elizabeth Warrens tears into Wells Fargo chairman
This is worth watching:
It’s worth noting that the Wells Fargo manager directly responsible for the scam “left the bank earlier this summer with a $124.6 million payday.”
Wells Fargo is a criminal enterprise, but that seems to be true for quite a few banks. See, for example, “Fed Monetary Policy Is Being Held Hostage by Wall Street Banks.”
On this page you can contribute to keep Elizabeth Warren (aka “Pocahontas”) in the Senate. We really need her there, so do contribute.
Note also “Regulators danced with Wells Fargo for years before penalties.” It seems that our agencies to regulate banks are actually run by banks—for example, President Obama appointed Mary Jo White, a defense lawyer for large banks, to head the SEC. Naturally enough, she does everything she can to protect her past and future clients, resisting any efforts to rein in or punish banks. The report at the link is by Kevin Hall and appears in McClatchy. It begins:
Federal regulators were aware of wrongdoing at banking giant Wells Fargo & Co. as early as March 2012 and issued a string of supervisory letters ordering changes over the next three years, holding off on penalties while the creation of phony bank accounts and falsely issued credit cards to pad employee bonuses continued.
That timeline emerged Tuesday at a Senate Banking Committee hearing on allegedly illegal sales practices at Wells Fargo. Despite the supervisory letters, a scathing investigative reportby the Los Angeles Times and this month’s $185 million settlement with California and federal regulators, CEO John Stumpf argued that the scandal did not point to larger risks.
The Wells CEO also told Congress he did not err in signing off on quarterly reports filed with the Securities and Exchange Commission that said the company’s internal controls were strong, maintaining that the problems did not reflect a material event warranting a notice to investors.
“It was not a material event,” Stumpf told the Senate Banking Committee in sometimes testy testimony.
It’s an important statement because there is now pressure on the SEC to investigate why Wells Fargo, the nation’s third-largest bank by size of assets, did not disclose to investors the potential risks to share prices associated with the ongoing probe by bank regulators.