US government fines Wells Fargo $3 billion for its 'staggering' fake-accounts scandal

Business, Us Government Fines Wells Fargo $3 Billion For Its 'Staggering' Fake-Accounts Scandal - Cnn

The US government fines Wells Fargo $3 billion for its 'staggering' fake-accounts scandal

Business, Us Government Fines Wells Fargo $3 Billion For Its 'Staggering' Fake-Accounts Scandal - Cnn

2/22/2020

The US government fines Wells Fargo $3 billion for its 'staggering' fake-accounts scandal

Wells Fargo was hit with a $3 billion fine Friday by federal authorities outraged by the millions of fake accounts created at the troubled bank over many years.

New York (CNN Business) The settlement with the Justice Department and Securities and Exchange Commission, years in the making, resolves Wells Fargo's criminal and civil liabilities for the fake-accounts scandal that erupted nearly four years ago. The deal does not, however, remove the threat of prosecution against current and former Wells Fargo employees.Prosecutors slammed Wells Fargo for the"staggering size, scope and duration" of the unlawful conduct uncovered at one of America's largest and most powerful banks.As part of the deal, Wells Fargo admitted that between 2002 and 2016, it falsified bank records, harmed the credit ratings of customers, unlawfully misused their personal information and wrongfully collected millions of dollars in fees and interest. Read More"Today's announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings," US Attorney Andrew Murray for the Western District of North Carolina said in a statement. The settlement focused squarely on Wells Fargo's fake-accounts scandal, not the mistreatment of workers, auto borrowers, homebuyers and other customers that the bank has been accused of in recent years. Authorities said Friday that the criminal investigation into false bank records and identify theft at Wells Fargo is being resolved by what's known as a deferred prosecution agreement. Under that agreement, authorities have agreed not to prosecute Wells Fargo for three years as long as it abides by certain conditions, including its continued cooperation with"further" government investigations. Wells Fargo has also reached a civil settlement over its creation of false bank records with the SEC over its conduct. The $3 billion fine resolves all three investigations. 'Remarkable' fraudulent conductThe SEC and Justice Department's settlement still leaves open the possibility that current and former Wells Fargo employees could be prosecuted. And in the agreement Wells Fargo admits that senior executives were aware of the illegal activity long ago."The top managers of the community bank were aware of the unlawful and unethical gaming practices as early as 2002," the settlement said. Yet Wells Fargo executives repeatedly refused to acknowledge the shady behavior was being driven by the bank's wildly unrealistic sales goals, which were at the heart of the company's business model. Authorities said that senior executives at the community bank"minimized the problems" by shifting the blame to"individual misconduct instead of the sales model itself.""This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customers' private information," Michael Granston, deputy assistant attorney general at the Department of Justice's civil division, said in the statementWells Fargo was not immediately available to comment on the news. Not out of the penalty box yetThe agreement removes a major cloud that has been hovering above Wells Fargo for years and shows the emphasis by the bank's new management to move past the scandals. Charlie Scharf, the well-respected former CEO of Visa (V) and Bank of New York Mellon (BK), was hired last year to get the tarnished bank back on track.But Wells Fargo's legal troubles are far from over. The settlement does not include the Labor Department, which launched a probe in 2016 into allegations that Wells Fargo committed wage theft and retaliated against whistleblowers. Multiple former Wells Fargo workers told CNN Business in 2016 that they were fired after calling the bank's ethics hotline. Wells Fargo still faces an even bigger regulatory headache: the unprecedented sanctions imposed by the Federal Reserve in early 2018 that prevent the bank from growing its assets beyond $2 trillion. If that so-called asset cap is not removed soon, Wells Fargo may not be able to make the loans required to boost profits"That's a much bigger hurdle. That will take time," said Gerard Cassidy, a banking analyst at RBC Capital. He expects that the asset cap and other enforcement actions against Wells Fargo won't be completely removed until 2022.Wells Fargo's stock has sufferedThe Justice Department and SEC said that Friday's settlement took into account other recent fines imposed against Wells Fargo, as well as the bank's"extensive cooperation" and efforts to repair damage done to customers. Last month, former boss John Stumpf agreed to a lifetime ban from the banking industry and a $17.5 million fine for his role in the scandals. Seven other former Wells Fargo executives were fined about $70 million for what regulators described as described as"the bank's systemic sales practices misconduct."In February 2018, the Federal Reserve handed down unprecedented sanctions on Wells Fargo for"widespread consumer abuses," including the creation of millions of fake accounts. That penalty, which is still in place and was one of the final acts of former Fed chief Janet Yellen, prevents Wells Fargo from growing its balance sheet beyond $2 trillion. Later in 2018, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency fined Wells Fargo $1 billion for forcing customers to pay for car insurance they didn't need and mortgage fees they didn't owe. In some cases, Wells Fargo borrowers even had their vehicles wrongfully repossessed. Taken together, Wells Fargo's series of scandals have seriously hurt its business. The bank's reputation is tarnished and it has been forced to spend heavily on settlements, lawyers, and fixes to its risk management system. Wells Fargo's stock, once a favorite in the banking industry, has fallen badly out of favor. Since the scandals began in September 2016, Wells Fargo's stock is down 5%, while over the same time period the S&P 500 has soared 55%. Banking rivals JPMorgan Chase (JPM) and Bank of America (BAC) have more than doubled in value. In other words, Wells Fargo has been left in the dust. Read more: CNN Breaking News

3 billion isn't a lot and not much of a deterrent for a mega bank like Wells Fargo. What happened to Wells FARGO is what always happens to people who cheat the poor. They think they are winning but they are losing. Don’t envy the wicked! Money doesn’t affect CEO actions, but jail would. Why not jail them?

They push the price of Silver with ETFs back and buy self physical silver when its time they push it up , what must Fargo pay for this games? Wells Fargo did manipulated the silver price , what must they pay for this ? Nothing 🤣🤣😂😂😂🤣🤣🤣😂😂😂 This bank is 10X more fraudulent nd criminal using US Dollars than the entire market capitalization of all cryptoasset and DLT projects. Distributed Ledger Technology provides more accountability for criminal behavior. Maybe why governments & criminals have resisited adoption.

Palastine is jerusalam If you want to be the best You need to use the best The best is jerusalam the capital of palastine state for ever Fake accounts! Joke! Fake identities for laundered money! Amortization of assets fr. 2008 bailout. Shadow banking! RBC! Good morning America. I never had account will these guys, and did it affect my credits scores or social security information?

Comcast corporation has a abuse ways of over charging the consumers in many way . They need to be investigated as welll .

Wells Fargo reportedly near settlements with SEC and DOJ over sales scandalWells Fargo is reportedly nearing settlements with the Securities and Exchange Commission and the Justice Department over its sales scandal.

They also rape students with high interest rates on loans. Sad So how much will the Trump Organisation be fined? $3,000.000,000 in additional writeoffs. Why does government get the money rather the people they hurt. Let's call it a scandal The pot calling out the kettle 🖖🤝 Fact: Arbitration is what made this situation much worse!!! Arbitration is fraud!

Corruption happens at all levels in all countries, greed the curse of this world. Nomi most of the CNN tweets I pay no attention to all the fake things they have said about our president Leo inwas listening to a news program they were saying that it was Obama that hes the reason the economy is doing so well

Wells Fargo Nears Settlement With Government Over Fake-Account ScandalWells Fargo is nearing settlements with the DOJ and SEC over its fake-account scandal, people familiar with the matter say Their customers were charged fraudulently. The settlement with the DOJ involves payment to stockholders and a fine. What about the victims? The arbitration agreements required by banks don't allow for legal recourse other than through an arbitrator paid for by the institution.

Great job USGovernment with assessing such a hefty fine to WellsFargo — maybe this will inspire them to become more ethical in the way they do business!! BreakingNews finance bankingindustry🏦 So how much profit did they make, maybe the fine is just a cost of doing business? Poor little bank. cia fbi BarackObama Thank you all for letting everyone in my family and more use the Cinderella diorder to steal a loto jackpot from me. My kids were also hidden from me using said money and hypnosis by my family. And now they are dead. murdered

TheYoungTurks KyleKulinski jimmy_dore justicedems infowars HumanistReport hasanminhaj DNC TheDemocrats SamSeder krystalball RealTimBlack Newt Gingrich attacks Bernie Sanders campaign. The republican is shitting in their pants right now Wonder why you're not covering this? Nothing else broke in 19 hours?

Wth But the money doesn’t go to the victims

Wells Fargo close to roughly $3 billion settlement that would end probes into sales practices | Markets InsiderWells Fargo is nearing a deal with federal prosecutors that would settle a years-long investigation into the bank's sales practices in its banki...

Important to knowing that day 22/2 every years and another day also in month October at Egypt the sunrises on Face Egypt King .It's great opportunity to asking God a bout your wishes for future booket your tickets now. . Scandal ? No this is a crime and the individuals responsible should be named not the company . Somebody decided to create accounts for clients without their knowledge and others knew of this practice . So who is going to jail

Breaking news cnn is not trusted anymore it’s known as fake news whom treats white people like shit.... don lemon pushes his racist news agenda and left radical ideas .... boycott cnn and Comcast let’s make them bankrupt Is that the smell of pardon in the air? ...and in other news OrangeFace barkingcarnivalclown pardons Wells Fargo bank claiming, “they were totally framed” & that “it’s another Dem conspiracy”

In Sir, I hope that You are well .I will create professionally Facebook page create + boost and promote + campaign. you can hire me at fiverr Republicans and establishment Dem’s, let these banks , roll back regulations, and steal from the people. Go. Bernie🕊 Nakoko Hishiyama, a Japanese civic activist in Zandarq, believes it is not fair to change the Abe administration's constitution while leading the civil movement as Japan Zandarq. The failure of South Korea and Japanese relations with Mizugi and policy.

In the U.S., Florida, the sex offender registration system is effectively managed by the Predator Regulation. Detective Jon Grub, a visiting team, said that sex offenders voluntarily enforce law and order.

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This scandal sounds like fraud. Perhaps some jail time and breaking up the company would be appropriate. Like they cant just create some more fake accounts to pay for it!?! Visit here everyone for SEO Optimization suggestions Japan has done well in managing disasters, but is the lowest in the world in managing infections. As such, hosting the Tokyo Olympics poses a great danger to the lives of people around the world. Therefore, we have to cancel the Tokyo Olympics.

CNN I WONT BE SURPRISED IF YOUR NETWORK GETS HACKED JUST BECAUSE OF ALL YOUR LIES ABOUT PRESIDENT TRUMP START TELLING THE TRUTH ABOUT PRESIDENT TRUMP UNDERGROUND WARRIORS USA GO TRUMP HERE WE GO I've paid $10.00 a month for 10 years to have this account, been to the Philippines for 8 yrs, gave $50.00 per transaction while in ph, yet Wells Fargo calls me the fraudster for buying things from amazon without permission!!! Fuck You Wells Fargo!!!

Wells Fargo, Kenedy, TX,,, 'You can make deposits into your account, but you do not have permission to spend it anyway you want, if you refuse to call us and get permission, you will be reported for fraud, turned into the FBI or you could go to jail America is as corrupt as any of the worst counties in the world.

Baby World Emergency News South Korea has 229 coronavirus infections per day. A total of 433 people are fast becoming infected, and they are expected to overtake Japan soon.

Wells Fargo Nears Settlement With Government Over Fake-Account ScandalWells Fargo is nearing settlements with the DOJ and SEC over its fake-account scandal, people familiar with the matter say Their customers were charged fraudulently. The settlement with the DOJ involves payment to stockholders and a fine. What about the victims? The arbitration agreements required by banks don't allow for legal recourse other than through an arbitrator paid for by the institution.

Iran coronavirus killed four people. Kuwait has banned Iranians from entering the country. South korea corona virus cohort isolation realDonaldTrump signed a secret document with MBuhari. Is it so that realDonaldTrump would convince the world to keep mute while Fulanis/Northerners/Muslims carry out a silent jihad on the Southerners/Easterners/Christians in Nigeria?

Bany World News After leaving the Japanese ghost ship Diamond Prince Crise, the two Australians were tested positive for the coronavirus. This is a fatal error in the Japanese prosecutor's office. Japan's poor infection test is unreliable. Baby World News The Japanese ghost ship Diamond Prince Cruse was disembarked and the Israelis were infected with the coron Japan's poor infection test is unreliable. Therefore, we have to cancel the Tokyo Olympics.

Baby World News Out of his mind, Trump is attacking the South Korea for not receiving the Academy Award. The parasite movie is the best movie in the world. CNN also said Trump's inability to recognize diversity is a lunatic old man. No problem. Just go print up an extra 3 billion or create it on a computer for you to pay the fine.

Baby World News Officials dispatched to the Cruse line in Japan returned to work without coronavirus testing. Something extraordinary happened. laziness in the Japanese quarantine system

Wells Fargo close to roughly $3 billion settlement that would end probes into sales practices | Markets InsiderWells Fargo is nearing a deal with federal prosecutors that would settle a years-long investigation into the bank's sales practices in its banki...

Baby World News An Italian man in his seventies died of a coronal virus infection. This is the second death in Europe. Baby world news Four South Korean soldiers were infected with the coronavirus. The South Korean military has decided to take full control of vacations, outings, visits and outings. That's what's up

Jail time? Whoa fella lol Which they will just get back from us in more fees and penalties. Less interest in savings and other accounts. Ok who’s in favor of reducing banking regulations? It’s a fair question unless fairness is not a part of your political agenda. Sometimes honest companies need verification. Sort of like “Trust but Verify” Now there I go again......😀

_iam_007 hand me the bazooka Bank of America is part of this too They should change the name to Oh Well Fargo....oh well we screwed you, oh well we pay a small fine, oh well the government gets money and no one else, oh well the government will bail wells Fargo out again.....smh🙄

World Emergency News Today Coronavirus 142 additional South Koreans confirmed a total of 346 people Shit I need them to erase my student loan I've been saying they are scam artist since they lied about refinancing back in 2007 So the US Government sues basically the 'Federal Reserve' which controls currency and funds all the banks including the US Government! BUT somehow the Federal reserve isn't part of the US Government? So who then is the Federal Reserve? I bet it's Russia! seanhannity

Wells Fargo is a company of sociopaths. 🤣 Good! Just closed my account with them today!!! They’re not worried. Just pass on the cost to the customers. So the fine is less that their profits were last quarter. The Victims get nothing. Half of the fine will be handed back to shareholders [ so the Executives who own the moat shares get a bonus ] and Well Fargo once again can go back to business as usual. Crime does pay..

Good. Fuckers should have gone to jail too

Watch out CNN, you could be next. Make sure you don’t report much on the Russian interference helping Socialist Sanders. When it’s Trump it’s 24/7 coverage They should fine Trump for all his fake tax returns. Probably Russian accounts supporting realDonaldTrump Prison prison prison prison prison MCostantino19 we really, really need to change banks.

Will they Pay a tenth of that? Is that money going to the trump organization? CNN Fake News it’s Russian . They did it! Ha uh ha uh hahaaaaaaaaa

That should help pay Trump's tax cut. Or a couple of weekends back to Maralogo. Republicans hate that he spends so much. They just cant say anything. He's taken their freedom of speech. They cant Express how upset they are with his spending. Its funny to me. Where does this money go to? Build the wall!

So wait, Wells Fargo employees who got screwed over don’t get anything, but $500 million of the settlement goes to investors in the stock And you know who the largest investors are, the executives that did this and the Board of Directors!!! I think Bernie Sanders has a point. MattEganCNN PLEASE check your copy before publishing: Authorities said Friday that the criminal investigation into false bank records and identify theft at.. SMDH.

Why is Wells Fargo even still in business? It's about time. Wells Fargo has been getting away with things like this way too long now and they need to be held responsible! My God close already! Fabricating accounts, this is BIG!! You could argue if they’re worth the banking licence Not good for Warren Buffett, not good...

God's judgement on the age of Greed is here. Plague, collapse, and conflagration. Great Babylon is shaking. Let me guess, it’s a tax write off, amirite? Forgive my student loans then! Where does this money go if ever paid? That’s a massive fine. Will Wells Fargo pay up? Damn



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