Saturday, October 22, 2016

The Wells Fargo "embargo".

 The Wells Fargo "embargo".

The California Attorney General's Office has launched a criminal investigation into  (1)>>Wells Fargo (WFC.N) over allegations it opened millions of unauthorized customer accounts and credit cards, according to a seizure warrant seen by Reuters. Wells Fargo was one of the companies that had a bad week in the stock market this  . Now it appears that pending a  on going investigation , uncertainty .he scope of the scandal is shocking.Attorney General Kamala Harris authorized a seizure warrant against the bank that seeks customer records and other documents, saying there is probable cause to believe the bank committed felonies.The probe marks the latest setback for the bank in a growing scandal that led to the abrupt.   So let me explain to the average person what Wells Fargo "employees" were doing (1.2)>> { with out knowledge of the Banks CEO's ?}  On Thursday, federal regulators said Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.The phony accounts earned the bank unwarranted fees and allowed (1.3 >>Wells Fargo employees to boost their sales figures and make more money.The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent, regulators say. The CFPB described this practice as "widespread." Customers were being charged for insufficient funds or overdraft fees -- because there wasn't enough money in their original accounts. Wall Street can't agree on whether the worst is
Elizabeth Warren called out Fargo CEO John Stumpf 
behind Wells Fargo as KBW downgraded the stock, while BMO upgraded the shares Monday morning.Adding to the troubles, last week, long-time CEO John Stumpf suddenly retired, bowing down to mounting pressure over the scandal. Wells Fargo put chief operating officer Tim Sloan in charge.On Friday, the bank released third-quarter earnings that fell short of expectations and remained unsure about the potential long-term financial implications from the debacle.  (2)>>Senator Elizabeth Warren told Wells Fargo's board of directors on Thursday that John Stumpf's resignation is not enough to assure "proper accountability" at the bank, and raises questions about Stumpf's departing compensation and whether the bank's new chief executive was involved in the fake accounts scandal. In a letter Thursday to Wells Fargo chairman Steven Sanger, the Massachusetts senator said it’s not clear if the bank’s board of directors had properly addressed whether new CEO Tim Sloan “knew about or played any role in the scandal.” Amid fallout from the scandal, Wells announced last month Stumpf’s forfeiture of all of his unvested stock awards, worth a combined $41 million, and that he will not receive any bonuses for 2016. The  misbehavior among executives at Wall Street's largest institutions. To criticize bankers is to describe large-scale wrongdoing, mass-produced outrage which leads to widespread misery. It can't be done without routinely deploying words like "perjury," "forgery," "fraud," "deceit," "corruption," and "rapaciousness." Seem to resumed the  "norm" after President Obama bailed out the Banking institution after the  the financial crash in September of 2008. Last year some of the major banks were under scrutiny by the  (3)>>State Department Four of the world’s biggest banks pleaded guilty to felony charges last year in 2015 , agreeing to pay roughly $5.6 billion in fines for fixing the price of currencies on the foreign exchange market. Justice Department officials made much of the fact that, unlike previous sweetheart deals with Wall Street, this one required the banks’ parent companies to enter a guilty plea.One of the institutions involved in this deal was Citigroup.All four banks of these banks are repeat offenders with long records of serial fraud, as even this outdated graphic shows.  Due to the bailouts of Presidents Bush and Obama, we now have a lot fewer banks for which to choose. Moreover, Big banks are now much larger. They are monopolizing the the institution  . Banks are again defrauding . Taxpayer gave trillions in bailouts and the government instituted thousands of new pages in regulations to stop the cheating in the financial industry in the wake of the ‘Great Recession.’ But did it  fix anything?

(1)>>Wells Fargo .Wells Fargo has long portrayed itself as a "bank for Main Street," far removed from the excesses of Wall Street's wheeler-dealers. AS it appears now it was fleecing , its CEOs live right down Wall Street. see :  said Andrew Ross Sorkin at The New York TimesSince the San Francisco–based company agreed to pay a $185 million fine on Sept. 8 due to illegal account openings, the stock has fallen more than 10 percent. (1.2)>> { with out knowledge of the Banks CEO's ?} The Nation   recently & eloquently stated that : “The business model of Wall Street is fraud,” Bernie Sanders proclaimed repeatedly on the stump. Wall Street’s big banks seem intent on proving his case. Most recently, Wells Fargo—whose CEO, John Stumpf, was celebrated as “banker of the year” by American Banker in 2013—has been fined $185 million for abusing its own customers. From 2011 to 2015, the company opened nearly 2 million bank accounts and more than 500,000 credit cards for customers who didn’t ask for them, engaging in fraud, identify theft, and forgery along the way. Its customers, as former Wells Fargo sales manager Beth Jacobson put it, were “all riding the stagecoach to hell.” (1.3 >>Wells Fargo employees to boost their sales figures and make more money.Our society worships wealth and consumption, and that slavish devotion has reached massive proportions. Along with that worship, our society seems to have rejected the idea that there is any dignity in the life of ordinary, law-abiding working people. In a survey conducted last year by a whistleblowers' defense law firm, nearly half of the senior bankers polled acknowledged a willingness to break the law to make money. (Presumably there were a number of others who also would, but weren't willing to admit it to a stranger.) (2)>>Senator Elizabeth Warren. The new demand on Capitol Hill for information comes as California state authorities begin a criminal identity theft investigation rooted in the Wells Fargo sales scandal, in which the bank created millions of unauthorized accounts, the Los Angeles Times reported Wednesday.The warrant and related documents, served Oct. 5 and obtained by the Los Angeles Times through a public records request, confirm that California Attorney General Kamala Harris, in the final weeks of a run for U.S. Senate, has joined the growing list of public officials and agencies investigating the bank in connection with the accounts scandal.Documents filed along with the search warrant argue that there is probable cause to believe Wells Fargo violated two sections of the state penal code — one outlawing certain types of impersonation, the other outlawing the unauthorized use of personal information. Both violations can be charged as felonies, punishable by imprisonment for more than a year. (3)>>State Department Four of the world’s biggest banks.  Banks have continued to defraud customers  regardless of Federal Regulations . Wells Fargo employee's seemed to have practiced what J.P. Morgan Chase was doing . Many people lost their homes unjustly as a result of this mass-produced fraud. The practice was so widespread at J.P. Morgan Chase that it required the hiring of untrained college-aged temps - referred to within the organization as “Burger King kids“ - to generate all the fraudulent paperwork.

No comments:

Post a Comment