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Up To 1.4M More Fake Wells Fargo Accounts Possible (siliconvalley.com)
An anonymous reader quotes the Bay Area Newsgroup:
Wells Fargo may have opened as many as 3.5 million bogus bank accounts without its customers' permission, attorneys for customers suing the bank have alleged in a court filing, suggesting the bank may have created far more fake accounts than previously indicated. The plaintiffs' new estimate of bogus bank accounts is about 1.4 million, or 67%, higher than the original estimate -- disclosed last year as part of a settlement with regulators -- that up to 2.1 million accounts were opened without customers' permission... The attorneys covered a period from 2002 to 2017, rather than the previously scrutinized five-year stretch from 2011 to some time in 2016 in which the bank acknowledged setting up unauthorized accounts.
Wells Fargo terminated 5,300 employees for creating fake accounts, and their CEO now acknowledges that "we had an incentive program and a high-pressure sales culture within our community bank that drove behavior that many times was inappropriate and inconsistent with our values." In a possibly-related story, Wells Fargo plans to shut 450 branches over the next two years.
Wells Fargo terminated 5,300 employees for creating fake accounts, and their CEO now acknowledges that "we had an incentive program and a high-pressure sales culture within our community bank that drove behavior that many times was inappropriate and inconsistent with our values." In a possibly-related story, Wells Fargo plans to shut 450 branches over the next two years.
Good to see all those people prosecuted for fraud, what, not one, not even the executives who planned it, not one single individual custodial sentences for mass fraud, I am sure that will kerb the banksters criminal behaviour, excellent precedent set by Uncle Tom Obama, bankers never go to jail, bankers always keep their bonuses, arms dealing, banking for warlords and terrorists, drug dealing, all a token percentage of the profits made by those criminal operations, thankyou for that precedent Uncle Tom Obama the Choom Gang Coward.
Chaos - everything, everywhere, everywhen
The banks make plenty of money. If you don't know how to make money being a bank, you're in the wrong business. It's like running a casino, and you're always the winner. There's a fee for everything and everything has a fee. Plus, I get to take your money and invest it in risky financial constructs, plus, I get to act as broker for every financial transaction that passes through me, which also allows me to charge more fees.
The true reason for this was pure greed, you're shilling for billionaires crying about regulations that prevent them from being trillionaires, mostly by stealing even more of your money.
Why don't you look up the CEOs salaries of say, the three largest banks in America, and tell me again how banks are not making any money? You do understand that banks make billions in profits quarterly. And that's despite paying the top dogs salaries and bonuses that the average person would never see after a lifetime of work.
But sure, go ahead a cry a river about how the ultra rich aren't ultra ultra rich because of a few regulations. I can only assume I'm addressing Jared Kusher or his dad. Or maybe his paid Russian shill.
If telephones are outlawed, then only outlaws will have telephones.
There is a recent NPR story about the people inside the bank who complained to management about this. They got black marks on their U5 which made them unemployable at any other financial institution. Good luck getting that cleared up.
Never be a whistleblower in the US.
Actually the WF CEO, John Stumpf, "retired" last October in the wake of the scandal. He was punished by having $41 million taken away from his retirement package, leaving him with a paltry $133 million. Such severe punishment will surely serve as a warning to others!
http://fortune.com/2016/10/13/wells-fargo-ceo-john-stumpfs-career-ends-with-133-million-payday/
Obama created the Consumer Finanical Protection Board (CFPB) and they are the agency that went after Well Fargo (after a banking employees union identified the problem).
Of course the republicans hate, hate, haaaaate the CFPB because congress can't neuter it like the way they neutered all other enforcement agencies - by starving them.
no no no no no no.
You prosecute and JAIL actual higher ups. Don't imagine for a second that higher ups give a crap about the health or future of the companies they work for. The will keep the cash they got paid during their tenure regardless. A possible stretch of jail time will be a much more effective deterrent.