38 Burst results for "Wells Fargo"
Some Washington DC banks to reimburse overdraft fees for unemployment benefits after tech glitch
"Week, thousands of unemployed D C. Residents did not get their benefits because of a technical glitch. But today, D C council member Elissa Silverman said Bank of America Capital one and Wells Fargo have agreed to refund Annie overdraft fees that resulted from the glitch. Those three banks represent about half of the region's consumer banking market, Wells Fargo and capital One customers are asked to call their branch to get that fee
Fresh update on "wells fargo" discussed on 90.3 KAZU Programming
"All right. That was the big picture in this economy and 6.5 ish minutes. Let's get down to the nitty gritty here, shall we? How people buy Which I mean consumers have been behaving in this corona economy and how they might behave in the after times consumer spending was up 2.4% last month got that number this morning. Driven by a bunch of things, car sales, groceries, alcoholic beverages and stuff to make homes and houses nicer or, in other words, not so much services like restaurants and travel and entertainment, but actual physical goods. What's gonna happen, though the when pandemic ends, and we've got other ways to spend our money, Do you suppose marketplaces Marielle Segarra has that one? Every year. Radman Conrad and his family take a vacation in July 2020. It was supposed to be Hawaii. They were going to visit a volcano. Go to a luau have some time in the sun and then Have to do some hiking and things like that didn't pan out. Instead, he and his wife, who live in Texas, took about $5000 from the vacation fund and spent it on their house. Got a new fence, some gutters. Very exciting stuff. No, not really. You like all right? Well, I guess the house looks better. But it's not the same as as a trip that gives you memories for your lifetime. You know, it's a cliche money can't buy you happiness, but that's never stopped Anyone from trying on before the pandemic. A lot of that spending went towards travel in restaurants. Now we're trying to fill our emotional needs this stuff. Eric Lund has been buying more things during this pandemic, and they've brought his family a decent amount of delight. He bought himself a car he'd been putting it off. Every time I drive around, it puts a big smile on my face and for his kids, a trampoline for the back yard, Wiffle ball sets and new bicycles. But Lund, who by the way is an economist at the Conference board expects this trend to reverse as more people are vaccinated and feel safe, traveling and going to restaurants and spas and things like that. You know, you only need so many trampolines for your backyard. You know, you only need so many televisions or cans of paint to paint your living room. So I think that there's gonna be a really big shift in spending patterns. And he says that will be great for the U. S. Because a lot of the physical stuff we buy is made in other countries. For a service economy. Mariel Segarra for marketplace. All right, So let's stay with consumer spending for this next story, Shall we? The CEO of Capital One did a thing at a conference this week in which he said Among other things, that the bank is starting to increase credit limits for some of its customers. No worthy we thought because not all that long ago In this pandemic card issuers were doing just the opposite, lowering people's borrowing limits. As the entire economy seemed to be teetering on the brink. But his marketplaces Justin Home reports Whole lot has changed. At the start of the pandemic. Banks lowered credit card borrowing limits by $53 billion, according to the New York Federal Reserve Limits continued to fall throughout 2020, but by less and less My Rod Rodriguez Fyodor is that MRV Associates advises banks on risk financial institutions of getting more comfortable, fewer customers air going over their credit limits or only paying off their minimum balances. According to capital One CEO people that have been lucky enough to keep their jobs haven't been spending as much during the pandemic system. Quinlan, senior economist with Wells Fargo, Because they're not out there spending to the extent of the ordinarily would on things like vacations and going out to eat. Ah, lot of those outlays often find their way onto the credit card statement this year. Wells Fargo predicts that consumer spending will grow by double digits in the second quarter and the third Andrew Davidson it copper media says credit card companies are looking for ways to capitalize on that spending by raising credit limits. They generate more outstanding balances, so that's how they will drive revenue for the company. Davidson says Banks are still cautious for now. But as the year continues, he says, lenders will start looking for other ways to get people to spend on their credit cards. All designed to increase the supply of credit to U. S consumers and capture all of that pent up demand, he says. That will include more credit card marketing, lower rates and better credit card rewards. I'm Justin. How for marketplace? Like Marry A was saying. We have been spending more on stuff in this pandemic. Recreational stuff included fly fishing gear in particular for us right now. As we tee up today's installment of our series, my Khanna Me. I'm Gerri Merriman. I'm the owner of the Fish Hawk in Atlanta, Georgia Business state very strong through the holidays, Of course, And then, as we got into the January and February time period, it's generally a drop off. But overall business, I think is still pretty good. What we're not seeing right now, or people traveling, and that's a big part of our business in February, But we're not getting people going out of the country. Our response to it is. We're trying to get well stocked up. Because I do believe that is gonna happen. People are gonna want to travel people are chomping at the bit right now. It's just until They make it a little easier or feel safer. That lot of people are sitting on the sidelines. We're still seeing shortages and pretty much all of our Rod Cos waiter Cos anything that's coming from overseas is just almost non existent. That was the problem he ran into last summer. We had more demand than we had inventory. And of course that hurt I've been getting e mails from somewhere cos they're already pushing. They're projected shipments back months, some of them So you know, therefore it may be time this summer that you know, we don't have what we need to sell again like last year. Particularly if you know with the demand keeps growing. You know, A lot of people are working from home that you know Bill fishing a lot more than they used to. And so it everybody wants.
Philadelphia Allowing Fans To Return To Sporting Events As City Relaxes COVID-19 Restrictions
"The city's covert 19 numbers are down. New cases are damn fatalities are down. And because of that officials have decided to relax the restrictions that have been in place for Some of them for six months. Now somewhere reimposed do it during the false surge, But the city is going to fall back to the state standards, which are looser than the ones the city spent observing. So for retail stores, for instance, they conduct ble. The number of customers allowed inside at once senior centers can open for the first time since the shutdown endure venues such as movie theaters and sports arenas can have 5 to 10% of their normal capacity, depending on size with a cap of 500 people. Movie theaters can start serving popcorn again. Outdoor venues can have up to 2500 people and tailgate. Ing's allowed outdoor events can have 100 people instead of 50. There's no expansion of indoor dining, but outdoors restaurants conserve tables of up to six people, and they don't have to be from the same household. This isn't going to work for everyone. The Wells Fargo Center says it needs at least 500 people to welcome fans back so they'd be over the cap. Before they even got started if they tried to have fans in, But the city says it'll be up to the state to relax it because that's the state cap of 500. People and J. All of this is dependent on consistent universal mask wearing at all times, except when people are eating and
Fresh update on "wells fargo" discussed on Marketplace Morning Report with David Brancaccio
"More than fifty stores in twelve states and yet we can't use like large money center banks like j. p. morgan wells fargo. That's andy grossman. Head of capital markets at green thumb. He says green thumb stores use smaller community banks national bank. Stay away because cannabis is still illegal under federal law without the big banks. Marijuana businesses can't accept credit or debit cards grossman. Says it's an all cash business. Where you're armored vehicles. Picking up cash delivering into a bank to deposit into the banks has for leasing space for new stores. It's hard to find a landlord that doesn't have a mortgage with wells. Fargo was fargo says. Not my body. Congress is expected to consider a bill that would change all this by legalizing marijuana. Maly majority leader chuck schumer and two other senate. Democrats issued a statement at the beginning of this month saying they're committed to what they call the comprehensive cannabis reform legislation moritz peres lobbyist for the nonprofit drug policy. Alliance is pushing hard for complete legalisation. That's the bill that we're going to be throwing our weight behind but given not. It's very comprehensive and bold. We certainly have our work cut out for us. That's because democrats would need the support of ten republicans to advance the bill in the senate analysts edwin groshans senior vice president at height capital markets puts the odds of a sweeping legalization bill law at less than thirty three percent. He thinks congress will go for more piecemeal legislation. Like a bill that would bar federal regulators from penalizing bank. Serving marijuana business in states where cannabis is legal. So if you're operating in colorado or florida where it's legal bankamerica they to conserve you. Go schenn's puts the odds of that bill known as the safe banking act at sixty to sixty five percent. I'm nancy marshall genzer for marketplace. And is it wrong to say a retail space was meaningful to you when a big-box electronic store in nine states called fries went belly up suddenly this week many folks felt a little wistful before the buzzword retail was all about providing experiences. There was fries. The one i used to take my kids to in burbank. California had a huge alien flying saucer crashed into the exterior. Emily pinero phoenix turned to fries early in the pandemic. It's very like it's just magical when you walk in because you're transported. I'm only ever been to one. I went to the one. That's aztec themed. I want to hear from you. What feature of the american landscape has disappeared in the last ten years that was especially.
United Airlines grounds Boeing 777s after engine failure
"We're going to begin today with the not so friendly skies. United airlines is grounding. Some of the boeing seven seventy seven in its fleet. This is in the wake of the faa investigation of united airlines flight from denver to honolulu over the weekend. That make an emergency landing. Because the boeing seven. Seventy seven lost an engine. Let me say that again. It lost an engine. No one was hurt and that includes by the way the people on the ground because there was debris falling from the sky. Because the boeing seven. Seventy seven lost an engine. Not surprisingly shares of boeing doubt. We'll get to the airline stocks which are all up. We'll get to that in a second. But you and i were talking right before we started recording. This are we in year. Four of boeing having these type of headline risk problems and yet feels like. It's i guess it's been that long. It certainly does. It feels like it's it's dragged on t to the tune of of wells. Fargo like proportions right. If it's not one thing it's another. And i guess so. At least it's not the seven thirty. Seven max right i mean. I think that's really been the big headline driver for the last. Several years for boeing and rightly so. I mean clearly some real problems inherent design and the software behind and so in regard to this. I mean obviously it's been very difficult. Stretch for boeing the stock. I don't think this is one of those things that necessarily is going to play out On them in the same way. I think primarily. Because when when we see boeing headline while the the the sub the sub head. There is pratt and whitney engines. That were found on these seven. Seventy seven. so it's not. Like it's a boeing engine per se. I mean it's on a boeing plane. But pratt and whitney which is a subsidiary of raytheon is part of this equation as well and so i mean clearly look you never wanna see something like this happen I mean even just the the notion that you could get on a plane and this is a possibility makes you think twice getting on the plane in the first place But by the same token listen we get out of bed every morning. And there's risk inherent and just living life I think this is one of those things that the responsible parties. They obviously dig into the problem. This could put a little bit of a a crimp on demand for these particular planes in for the foreseeable future at least until they come up with an answer. I don't think this is one of those things that necessarily pins this company down like the issues with seven. Thirty seven though
Fresh update on "wells fargo" discussed on Glenn Beck
"Billy Geico Great service without all the drama Bank of America now says it's cutting some staff and its global banking and markets division. Wells Fargo was first to break with the industry is the second half of last year began cutting positions is it looked to lower costs. Goldman Sachs and Citigroup followed. Now. Morgan Stanley's takeover of Eaton Vance's set to close next week and layoffs are typical in any merger. Some better news about the economy, though for the first time in seven months. Poverty is not trending higher. A measure created by the University of Chicago and Notre Dame, find the overall poverty reviews. Radio 1080 Okay, A M and k x x y FM 96.1 HD, too Oklahoma City murder leads.
M&T Bank buying People's United in $7.6B all-stock deal
"A. Ginny's a question this morning. How do you fight competition from big banks like Chase, Wells Fargo and Bank of America? You do it by getting bigger, and that's what M and T Bank which only has a few banks in the Philadelphia area. Is doing its broadening its reach, though from Virginia all the way up to New England. The bank is buying people United Financial in an all stock deal. It's valued at more than $7.5 Billion.70 CEO says the deal's important for the bank to get the necessary scale. It needs across things
interview With Geoffrey Tate Of Flex Logics
"So jeffer-. I wanna start off with certain difference between doing business with the data center versus doing business at the edge. I know that the hardware you folks are working on. Is you know what i think. Most people think hardware. They think about the big rack sitting somewhere in the data center the edges different the edges. New it's its burgeoning. How do you define the edge when you talk to people. Because i think people always think about those racks but it's clearly a blooming ecosystem. Yeah well azusa terms of different people defined differently but where we basically look at businesses any system. Outside of the data center there can be things like cellphones stations in verizon stations that are kind of in between what we're looking at your robots this. He'll cars field ultrasound systems in the field. So these are systems that are separated in well removed from today's yet. Okay and and obviously pretty wide. Berth as to what that could be almost any industry this this could be applied retail. You've got cameras energy you've got i don't know some some big turbine out there. You know generating some power killing in occasional bird. You know it's pretty pretty vast swath of of what what can imply does that. Broad world of edge cluster. In any interesting ways. I think industry would be one that makes sense. Maybe you can talk a bit about that but we also use case what you see edge sort of us for a certain way tammy how do you think about this whole new space. Those of us at home. it's it's sort of. It's new it's novel but how we want to break it up. Well we're just touching the top of the iceberg so we've engaged with a lot of customers see a lot martin's segments and they have different potential sizes so one obvious one is countered. There's cameras all over the place. You mentioned walmart's wells fargo's there's cameras today wired into servers in the back offices of these places and serve servers not in the data center and right now those cameras us recording video in case somebody shoplift something that got her the tape. Now they can add inference start tracking their stores checking buying behavior along the lines along the take to get through the lines things like that. So that's an application where you need object detection and recognition similarly when you're talking about robots robots moving around into distribution for a warehouse. They need to know you know what. Say iraq to put things on. What's the what's the person to make sure you don't get them. Yeah so you're detecting. You're recognizing them taking action appropriately. Same thing happens with cars so those are all object detection recognition models like yolo the three which do an excellent job of doing that. Which are people are flying now and we see medical imaging and there's many types of limiting there's crazy. Mri machines are much less expensive or numerous ultrasound. Machines x-ray cd stamps and stuff in between so there with the people are using models for his more specialized object detection recognition typically. You're standing your knee. It's stuck in there. It's not moving but you're looking to detect some anomalies in the x ray on the ultrasound. South is the baby. Ok is the got busted acl. So it's helping. The radiologist do occur. Job of diagnosing powell. That's what those kinds of models need to be doing. Things like Scientists gamma joining or life sciences. And they are in many cases what they're doing is looking to clean up images using network approaches through extraneous information clarify the. Which if you've ever seen like an ultra sounds like i just recently hasn't surgery. The doctors were trying to find a vein of the my shoulder. I can see the ultrasound. They were looking at a teaching hospital. And i couldn't tell what they said when they when they started a doctor they couldn't tell was on either but eventually they figured it out so these ultrasounds are hard to make out in. Computers can make better judgments which results in better outcomes says. A wide range of applications are seeing for inference models. I think we're just scratching. The surface gets more powerful and cheaper is going to go into more more more systems.
Philadelphia Flyers beat Pittsburgh Penguins to start season
"Begin their season with a 6 to 3 win over the Penguins of Wells Fargo Center came by double use. Dave, You ram here, David was Ah, pretty special night for a few flyers in particular, wasn't it? It was Carol 60 from players scored goals, and two of them were Nolan Patrick and Oscar Lindblom both off deflections Patrick missed last season with a migraine disorder. Lindblom recovered from cancer. This was also Limb Blondes first game at Wells Fargo Center since head coach Alain Vigneault revealed post game Both guys got a big cheer from their teammates prior to the game. You said his one disappointment on the night was that the building was empty, noting how fans would have reacted really nicely to Oscar. We did find that we did not find out that Oscar scored until well after the game. It was originally credited to Travis. Connect me. It's actually Oscar school, so that's better. I think than me getting one. I mean, if you watch the highlight, it goes off Oscar's head in the net, so I'd rather him get one tonight and does well. 20 year old Joe Therapy, had four points a goal and three assists. Carter Heart had a bad turn over that led to a goal for Sidney Crosby but otherwise made 31 saves. And the Flyers went two for three on the power play. Carol Good start to the 56 game season Sounds more
Retail Sales Break Records During Holiday Season
"The us department of commerce's monthly retail sales report is expected to reflect more moderation in consumer spending at the end of two thousand twenty consensus. Economists expect that retail sales were flat in over november. After a one point one percent drop during the previous month while spending likely increased steadily. On a non seasonally-adjusted basis the ramp in seasonal spending was likely lower than in previous years as the pandemic steadily worsened through the month and fewer family gatherings took place over the holidays. New amora chief economist. Louis alexander said in a note. Friday restrictions on restaurant activity resulted in sharp declines for open table data suggesting a decline in food service spending during the month however this will likely be offset to some extent by large increases in gasoline store sales considering higher retail gasoline prices during the month the november retail sales print represented the biggest drop since april's record plunge as virus related restrictions constrained spending on services and more than offset ongoing strength in good spending a nearly eighty percent plunge in department store sales and sharp declines in clothing store and restaurant spending contributed most heavily to the overall monthly drop in november but even with the month over month decline retail sales remained higher by more than four percent year over year thanks to a surge in spending on goods earlier on during the pandemic period. Total sales are set to close out the year better than they started it with our forecast for flat sales growth in december consistent with a four percent year over year gain. This remarkable feat cannot be said for many areas of the economy that continued to reel from the pandemic wells fargo economist. Jay bryson said in a note friday but retail has disproportionately benefited from a surge in good spending that said there remains wide variation in sales by retailer and we expect that these dynamics of varying sales continued last month amid rising virus case counts a weaker than expected print. In friday's retail sales report could also signal some additional pent-up. Consumer demand could come back for goods consumption in the coming months. Bryson added if sales exceed our expectations however it would be further support of our forecast that after a year defined by the virus households spent in record numbers this holiday season as the yearn for comfort and normalcy. He added for
Job growth crashed in December as COVID-19 surged
"In months. The Labor Department reports the economy lost jobs in December 140,000 jobs Wells Fargo senior economist Sarah House, his losses are acutely felt in those industries that have been battered since the Corona virus pandemic triggered widespread closures. We saw that with the decline of almost 500,000 leisure and hospitality jobs, so start job losses at your restaurants, hotels and really, the things that consumers have have had toe pull back on.
Philadelphia 76ers quarantine in New York after positive test
"Are in quarantine in New York after one of their players tested positive for covert 19 19 k k y y W W Dave, Dave, you're you're AM AM has has the the details details on on the the situation. situation. A A team team source source told told us us that that the the Sixers Sixers we're we're going going to to follow follow MBA MBA protocol protocol as as they they stayed stayed overnight overnight in in New New York York due to this positive test word of the test leak shortly after post game press conferences from their loss to Brooklyn. Then ESPN reported that Seth Curry was the player who contracted covert 19. He didn't play last night because of ankle soreness, but did play 36 minutes on Wednesday. The 30 year old Curry was on the bench with a mask during the first quarter. He sat directly next to assistant coach Sam Cassell. Jo Ellan Bead for a little bit and Dwight Howard as well. But Howard was a little further away than the other two. ESPN reported that Curry went into isolation once he found out about the test and exited Barclay Center, separate from everybody else and be told ESPN that he's going to self quarantine away from his family, which has a three month old Until he knows that he does not have the virus. The upcoming test results in contact tracing are going to be really important as to what happens next. The Sixers are supposed to play Denver tomorrow at Wells Fargo. No word right now and what's gonna happen with that game? It's a very busy schedule ahead, Four game slave it over the next week and six over the next week and a half. Dave
US loses 140,000 jobs, first monthly drop since spring
"The U. S. economy posts its first monthly job loss since the spring the labor department says U. S. employers cut one hundred forty thousand jobs in December the first monthly loss since April Wells Fargo senior economist Sarah house says nearly five hundred thousand leisure and hospitality jobs were lost your restaurants hotels and really the things that consumers have have had to pull back on how says the fact the jobless rate stayed at six point seven percent the first time it has to drop since April doesn't tell the whole story about unemployed Americans about four million more people outside of the work force not even being counted the economy still has nearly ten million fewer jobs than it did before the pandemic struck in March my camp in Washington
NBA 2020-21: Philadelphia 76ers Beat Washington Wizards Despite Bradley Beal's Record-tying 60 Points
"This evening eked out a 1 41 toe 1 36 win over the wizards up by a whole lot more. Early in the third quarter. I believe they're up by as much as 21 points before relinquishing that lead Washington how to briefly in the end, Sixers came through and be with a big night. We're going to talk about all of that. As well, as you know, we want to get excited, right? We want to get, you know, like all in like, throw caution to the wind that should say and then go all in with the 70 Sixers team, but Only eight games into the season. We've been here before, and that's why we have to bring in an expert someone who has covered this team for many, many, many years nice enough to join us. From the Bucks, County Courier, Times Intelligencer, Burlington County Times and occasionally USA Today Sports. His name is Tom or what's up, Tom? John. How you doing tonight? Tom, You know you spent the evening at the Wells Fargo Center. As you have so many nights over the years, Tom, let me start with tonight's game six years held. I believe it was a 21.20 or 21 point lead at some point in this game. Clearly, I mean, relinquish it to the point where they completely gave it up Washington to lead but they came through in the end. Um I guess time I wouldn't want to ask you first is when they gave up that lead. What was from your standpoint? What was the chief reason? Why was it lack of focus? Was it something Washington was doing? What did you see? All the sixes have been scorned kind of will. And I think what happened was when, when, uh, Doc Rivers went to his bench like midway through the third quarter. I think they kind of were still into that score mode, and they did not really clamp down defensively. And Bradley feel You know what Just went nuts. You played the whole third quarter. He had 25 in the third quarter 25. They were up 19 with 2 32 to go in the third quarter. Yeah, John, I've covered the NBA for 33 years. That's tied for the most points I've ever seen in an NBA game. Alan ever, said 16 on February 12 to 6 and five at the center against the Magic. That is an incredible amount of points. Or an NBA game? Yeah, e get six is a lot of credit that you know you're right. The Wizards went up to when Meadow hit that little shot with about seven minutes, having a half minutes ago. And they, you know, they brought the starters back and they kept score, and they got stops in the health field of three points in the fourth quarter. You know and and pulled it out. I mean, they're beating their winning games they should win against means they should be, And I think that's a reason to be certainly cautiously at least optimistic. Yeah, I was going. I mean, you know how many the last two or three years we went through these stretches or through most of the season, where they would lower themselves to their opponent either eke out an ugly victory or end up losing those games and through eight, all of eight games. We haven't seen that thus far. Let me talk. Let me talk about a couple of players on the roster. I got to start with Jo Ellan beat Is this the best Jo Ellan beat has looked as a professional in your eyes. I think he has. I mean, tonight. You don't. He didn't score in the first quarter. I think you missed his first five shot. You know, it was a little lethargic Monday night just wasn't into the game tonight. He was into the game, but he just seemed to be going like 100 miles an hour, missing a lot of shots. And he just He just got to go on ended up with 38. You know, had 10 points in the fourth quarter kind of took over the game when it was, you know, on the line midway through the fourth quarter. Uh, yeah, And defensively, you know, blocking shots from guards driving to the basket he gave. He gave Netto our time after blocking his shots. And I guess it had come like you know you you should know better going to get me in practice. If you know it. This and the sixties, and Doc Rivers is taken advantage of giving him the ball and to his credit. He's taking less threes, and he's playing Maura in the low post and the mid range where he is most effective. You know you brought up Doc rivers, So let me skip away from the players for a moment and go to Doc Rivers. We watch seven years of Brett Brown and would sympathize with him a times and maybe defend him at times because of what he had to work with and what he was dealing with the front office and don't shoot the messenger and everything else in between. Tom, I gotta tell you through, you know, eight games. I mean, Doc Rivers is blowing Brett Brown out of the water. I mean, is he making that much a difference? Well, I mean, I think he he had He knows what he wants, and he's done it before, And I think that really helped When you have that experience you thought with the Flyers with Alain Vigneault after hacks call who was new and was learning on the fly, and I think rep around to a large extent, it's the same thing. You know, he also had shooters that Curry has been fantastic. He doesn't force thing You know, He really doesn't. He gets his threes and in the flow of the game. He's a pretty good ball handler and runs a lot of two million games with oil indeed. No eyes. Good passer. You know, Danny Green starting to play, you know. Feel better offensively, at least, although you know Bradley Beal, holy smokes or cinema towards him and Matisse Bible as And, uh, you know, whoever else uh, you know was on him tonight. But, yeah, I think he has a system. He knows what he wants to do. He's done it before, and he's trying to make the system. That the players rather than make, you know, like he's making the system Revolve around the players rather than trying to do the you know, Square Peg round hole kind of things,
Where does the economy go from here?
"We are going to dispense with the president's remarks last night about changes he wants made to the virus relief. Bill that congress finally passed on monday. After months of negotiations. We are going to dispense with it with this observation. It's all fun and games and political intrigue until somebody gets hurt and people are getting hurt all over the place in this economy as we have been telling you for months and we got more evidence of that this morning courtesy of the commerce department will learn consumer spending fell nearly half a percent last month the first time. It has fallen since april thing. How long ago. That was and it same time. Personal income fell by a little bit more than a full percent. The third decline in four months. It's no mystery. Y right government aid has been keeping people afloat and that aid is running out so to get us going. Marketplace's samantha fields looks at what that is going to mean for this economy. This time of year is normally when people spend more money. Carl tannenbaum chief economist. At northern trust says the fact that personal income and consumer spending dropped in november is a bad omen. It does give a pretty good sense that households are not going into the new year in very strong answer to the urgency around. The negotiations in washington consumer spending crashed in march and april but then bounced most of the way back largely thanks to government aid back in april after the cares act. There was a huge pop in personal income. Ted rosman is an industry analyst at credit cards dot com and a lot of that did trickle down to other sectors of the economy. He says over the summer a lot of people felt like things were getting better but now maybe those unemployment checks have dried up. They've long since spent their first stimulus check. Maybe they're not able to go back to work. And people are nervous. After months of uncertainty over whether the federal government would provide more relief says tim quinlan senior economist at wells. Fargo six a long time to build up consumer confidence and not so long to disrupt it or to shake it and when people have less confidence and income there are less likely to spend their money. Carl tannenbaum northern trust says that is a bad combination spreading done by households accounts for almost seventy percent of our annual gross domestic product. Our national income. And if it's not recovering he says neither will the economy.
Philadelphia 76ers to face rival Boston Celtics at Wells Fargo Center
"Tech. The MBA announced its preseason schedule earlier this evening. The Sixers they're gonna open the preseason on December the 15th at the Wells Fargo Center, which is important because we didn't know whether they were playing in bubbles or not. That would be against the Boston Celtics. The regular season is slated to begin one week later on Tuesday, December the
Buffett's firm trims Apple stake, invests in drugmakers
"Seeing a thematic rotation out of bank stocks into farmer during the quarter. Let's start with the new positions in the pharma sector berkshire-hathaway taking new stakes. An abbvie merck and bristol. Myers squibb each of those positions worth about two billion dollars as of the end of september. Warren buffett's for also disclosing a smaller position in pfizer. Worth about one hundred and thirty six million at quarter end and maintaining nine digit home in teva and biogen on the financial side. We're seeing a continued reduction in bank names by berkshire hathaway the firm almost selling out of j. p. morgan entirely paring back at stake by ninety six percent. Hold just under one hundred million dollars worth of stock also sizeable reductions in mt and p and see as well berkshire-hathaway providing interim filings on wells fargo and b. of in august and showing a slight decrease in position since then in each of those names. Interestingly there was no change in the firm's nearly five billion dollar stake in us bancorp and speaking of multibillion dollar steaks. I know we love to talk about apple here. The way into three sold about four billion dollars worth of apple stake at today's price. Although that was a paring back of less than four
Wells Fargo's Stumpf and Tolstedt charged by SEC for misleading investors
"Wells Fargo Back in the spotlight this morning. The Securities and Exchange Commission says its final charges against former Wells Fargo's chief executive, John Stump in the former head of the bank's community bank, Carrie Tolstedt, for their roles and allegedly misleading investors about success of the core business, according to market watch. The findings include settle charges against, UM, who agreed to pay $2.5 million in penalties. And litigation alleging told said, committed fraud,
How To Help Professionally Successful Women Survive a Divorce With Allison Jeffereys
"Hello and welcome to another top advisor. Marketing podcast. Some of you have said to me on podcast, you know Matt. My Niche is focusing on women that's not an itch. It's fifty. One percent of the population is actually the majority of people on this planet. But today we're going to dive into how you could actually focus a lot more on women in an area that is very, very important and I believe is entirely underserved Alison. Jeffries is a divorce coach and author of a woman's guide to surviving divorce. A woman's guide to surviving divorce, she's also at the end when everybody hanging to the end because she's going to give away something that we'll have link in the show notes but and I was reading to prepare for this and if you know anybody who's been through a divorce if you've been through a divorce, it doesn't matter if you're a man or woman, you'll see yourself in these questions. She's really created this magnificent spreadsheet that will help you navigate conversations. But Allison. Let's let's start at the beginning. What do you do I mean how did you get here? Why are you? Why did you publish this book? Why did you want to become a divorce coach? Well I publish the book as a Personal Passion Project. We all go through life. Everybody has one book in them, but I think the important part of that story is, how did we get to the book? So I headed thirty five year career in the corporate world worked for Fortune One hundred companies Merrill Lynch prudential. Citigroup Wells Fargo worked in the financial sector worked in the securities area at Citigroup was. Managed a part of the country educating financial advisors on how to work with women in a group called Women Company. During that time it was in the middle of all the changes in the laws and regulations around financial advisers and tracking and documenting, and all of a sudden I had one month to take my seven and get it to continue to do my job. I did it. Couldn't believe it. But I, did it. They told me I had to take it I figured whether I failed or not. At least I'd taken it up pass. So I did have my seven had my sixty five. Loved the education of how women relate to money my degree is in psychology. So that was right up my alley really worked a lot on the difference in how women approached things how we make decisions, how we manage or don't manage our money those barriers between ourselves in money, the cultural issues, the professional issues, and all of those things that men had a hard time understanding about their women clients and why it was important to work with them. Left that career and honest to goodness. Being financial adviser with something I never wanted to do. So I. Let all that Go. I. Went Back into the corporate world in at a certain point in my life, I had a chance to stop. Rethink about what I wanted to be I. was on my second divorce. and. It was kind of one of those things where you common denominator here would be meat. So. I had to fix that become a big belieber marriage in I like men so. It was a it was self revelation process did a lot of writing. It became the book and it is a fictitious version of what a woman experiences when faced with divorce. Based on those common cultural and. thinking process. Things that are totally women. That we do. And so that's where I am. Okay. Why why should financial adviser scare? Why should insurance agents care? Why should financial adviser scare? Why is this such an important focus for people who have discussions surrounding money? Well. As you said, women are fifty one percent of the population. I don't know that math works for me the other reason it. Is More critical to financial adviser is back when I was it women company years ago we always cited that statistic that by twenty, fifteen, fifty percent of US wealth was gonNA transition into the hands of women. Well guess what it's happened. So whether women have come up with all this money through death divorce or old fashioned way we aren't it. We control a larger percentage of the investable assets in this country. But because of the cultural barriers because of the social morays that women have been raised with if we're anything over twenty five to thirty years old. We might not be managing them very effectively. And It just makes sense to me if you're a financial adviser to understand how to speak to women to get them engaged in Manning, they're managing their money.
Bank of America profit falls 16% in third quarter
"Getting a slew of earnings report from the banks today, including Goldman Sachs. The company reported a third quarter private that rose well above expectations. Revenue topped forecasts. Wells Fargo said it Aaron to building in the third quarter. But that was less than half of what it made in the same period last year, but an improvement from this year's second quarter and we're also hearing from Bank of America today, saying third quarter profits dropped 15.6% from a year earlier. But B of a Sol listening to put aside money to cover potentially bad loan, Citing improvements in the economy. Recently,
FinTechs Pandemic Pivot with Cross River CEO Gilles Gade
"Hi everyone is Rei and welcome back to kindred casts I'll sitting down today with my friend Jill gave the founder President and CEO of Fintech powerhouse and Unicorn Cross riverbank crossover was started by Jill two, thousand eight as one branch bank located teaneck new. Jersey. At the technology company now, powers companies like affirm circle best a coin based rocket loans stripe of star and transfer wise at are backed by big investment from Ktar, a French battery ventures, Andriessen, and Lyari. Issue over the past twelve years, the firm has grown to three hundred fifty employees providing over thirty billion dollars in loans over eighteen million customers, and during the crisis crossover helps nearly two hundred thousand small businesses would be yuan's through the paycheck protection program, which really puts it in the company of the big banks like Bank of America Vicki Morgan Wells Fargo Right? They're pretty impressive and very helpful to our overall recovery drinks endemic last two years it was named the most innovative bank to work for. Job GonNa try to give you a run for your money on that one here line. But I WANNA wish you. A Happy New Year it's a real pleasure and honor to kick off the year in the Jewish calendar fifty, seven, eighty, one podcast, and as I like to say when you have gone for over five, thousand seven hundred, eighty years, there's downs, ups and Dowse said via a shot at the by pleasure to. Today. It's real pleasure. We've. Meeting of last year's restaurants and and peers of isolation and zooms that in person you're one of my first meetings safety and security and I really wanted to stay closed during this dynamic given how busy you've been thus give everyone a background here because I really think through cross. River. Everyone here is going to get a lens of not only the fintech universe and where. We're going in banking what we've come from, but also what has been going on on the ground during the period in helping so many businesses on Main Street get back on their feet again, and that's really why this is such a story around business and building value but also round helping people around a real heartening narrative that I really wanted to to bring out here to. Tell us how the company was founded. In An Giang aid is a quite an unusual and interesting story towns came to be across different, very ginning. Sure. So I don't want to log on the history because I think the more recent stories much more fascinating just trying to help two hundred, thousand small businesses get back on their feet. As, been. Me Crowley the biggest side, my career and I think probably would be the highlight those anybody spuria stage. So something that's we're very proud of York buster the go back in time. So I came to the United States in Paris fries whenever airs went to school there worked a little bit I was actually analysts that CPR venture capital in Paris. Working on. Some of the first. Time nineteen eighty, nine, hundred ninety in Europe actually, and then crossed the Atlantic came in Nineteen ninety-one go to job at bear stearns I was in International. Working on. Of. Banks insurance companies. So that was my first foray on shown initial services got very fortunate. I. Wide. I landed in finishing the group at bear stearns and our retrospect you gentlemen standing of our God does things and just put. So you know some pebbles along the way that one day you're going to be caught to inspire where you heading in. Then I took a Atas when I got married and I went to learn fouls. Wow Yeah Joe Jr ethics, which is a commentary on the on Jewish law. In companion. I did ask a couple of years came back to of making this time. The only job I could land was open difficult to give back to the market I worked for Barclays Capital. Zoom one of the Thomas Tell you that made you on jump back into banking. More by necessity. With all the day will undoubtedly the feedback I needed to go back to work I. Think. All my life savings where it's only exhausted it's not a life that was prepared to date or the rest of my life. So regretfully, so because it's it's really fascinating as size definitely intellectually stimulating. Question about it but I still enjoy doing it. By the way I still earned every single day studying law in this is something that will stay with me Probably you know for the rest of my life. A lot of good business lessons and haven't company in the home. Absolutely I mean there's definitely a concepts of humility ethics respective others listening to the position particularly respecting the physician and there's always a counterpoint that. Is Truly a hundred centre-right nobody's abso-. Medium. Or these always way and ruth compromise, and this is only a life lesson that is invaluable. And by the way, you know any book that I've Read Entrepreneur and as points to she's. Have successfully led their companies through an exponential organization at goal example, Faisal Volleys. So just running about them under different concept different setting and they're trying to allies them intellectually and then trying to fly them. Businessworld is something that I was very fortunate or being able to do the. So you hundred that's that was very formative for me and trolley in the central step along my travels and my journey in becoming the COO crosser in that like say like the only job I could land at the time was in technology banking and nothing about technology. For aqueous capital. Under Sunday night, who's global head of technology and worked on some Fascinating Tales Global Crossing Iridium satellite network in then work on the transaction war on the computer associates CSC sale merger it was really fascinating to. To work on the technology front been trying in in learning about a new trade and look at this you know like some fifteen years later. It's a rejoinder between technology and banking.
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"Like that. 'cause she can. You can get special perks. Guys Right? And now we're family once they have all my info. Just give me a card and punch a hole in it when I buy a thing and then give me a free thing when I punched enough holes in it. You know I'm old school like that. I'm finally. Yeah, so imagine that you are again. We keep trying to put ourselves in the position of the lower level. Employees at an institution like this when you. Like maybe you have experienced a maybe a quarterly meeting, a meeting with your company where everybody gets together, and they talk about the state of the company, and what's going on and everything you know is going up or down, or for this reason for that other reason, things are going great or terribly and imagine you're in one of those meetings, and you know that you your your bank. Your local chain of the bank and your manager, you guys didn't meet up to the standards, but you guys did everything right and you tried as hard as you could, and you made some pretty good numbers, but they're not quite what they were looking for. They're not really even close actually, but again. You did a great job then over this meeting in this caller. However it goes some other branch you know. Let's say dozens of miles away. For some reason they exceeded this gold. It was way out of reach and on this. Call Your boss's boss's boss. On, this call says man. You guys just just killed it. He did a great job. You guys are just Rockin. These numbers mad. We're so proud of y'all. You're getting bonuses. You're getting this. You're getting that. Everybody on this call needs to look up to the to this particular group to this bank and do what they did. And you know, imagine feeling that. Yeah! Then those those people who were meeting these increasingly sales goals. They were the minority. For Awhile and fairly often, and the often had achieved these things through unethical or illegal means since where we are you as you said no, that's February of two thousand twenty just a few months ago. What lessons! Learned from this retail bank conspiracy again, not a theory. It's a conspiracy. Here's the thing part of that twenty twenty deal with that three billion dollar price tag includes a deferred prosecution agreement. An agreement, a pact that could. The, positive way to say it is that the bank could get further criminal or civil charges if it engages in new criminal activity so basically. Pay US three billion dollars, no criminal charges, but you're in trouble because you got caught and you'll be in trouble if you get caught again. Okay, so trouble is somewhere in this equation. My Guy smarten up. We've got our eye on You yeah, it's true. It's wow. I Can't, believe that. They're still around because I guess you know they're one of those too big to fail organizations right, so it's like I, I don't know how you get away with this. And how people didn't do as you said Ben and just pull all their money out. You know and. Even though this is ongoing, it feels even to me kind of like a distant memory. just feel like the attention span for stuff like this for consumers is often pretty short, and if it doesn't actually affect me personally, and why should I do anything about it? Why should I? Go to that inconvenience of pulling on my money out and starting over you know even though it's not that big a deal to start any bank account, but it's slightly inconvenient in them. Right and you're there are. I don't know about you guys, but I will go to extraordinarily lengths to avoid any slight inconvenience. I like a there. was like to play life on easy mode. It barely ever happens, but it's. It's a nice thought You're right. There was a run on the bank but it wasn't necessarily mean there was a lot of. Terrible, PR fall out from this and they went into overdrive on the Bernez Front, but a lot of investors. Reacted because remember they're. They're kind of like customers at bank, but more important. There the better customers, so the bank also wells. Fargo set up a five hundred million dollar fund to compensate the investors who took a hit What do investors say? who took a bath when Wells Fargo didn't tell them. That the banking business they had was not as strong as all his fake accounts made it seem but Asterik that five hundred million dollars is included in that three billion dollars settlement total, so it's not like they pay three billion dollars and five hundred million again. And this leads us to the conclusion as To to your point. To your point mill obviously wells Fargo is still around. It survived the great recession. It assures the public for its part and investors that this will not happen again. This was you know somewhere between a grave miscommunication in the in the command. Or a few bad actors, but the Bank itself, and this is true. The Bank itself never condone this activity. It is true. They just. They forced it to happen. Without realizing it, let's say. But? Here's the deal. Not as though Wells Fargo is acting alone. We've all talked about before the Wachovia dealings and the problems that they had before they were absorbed by Oregon bought out and absorbed by wells, Fargo, the problems with other major banking institutions, including very similarly a little regional bank from Ohio called fifth third. May Have heard of this. You may have seen one of their branches. They've got them all over the nation. There are thousands of them and. They have roughly one hundred and fifty billion dollars in assets and guess what. They're accused of the same thing pretty much the same thing. Yeah I didn't know anything about that when I actually had my mortgage through fifth third's back when I owned a house in Athens years ago. That's fascinating. That's that's news to me Yep. They've been accused of as you said at the same thing right now..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"Yeah, it's true. It's wow. I Can't, believe that. They're still around because I guess you know they're one of those too big to fail organizations right, so it's like I, I don't know how you get away with this. And how people didn't do as you said Ben and just pull all their money out. You know and. Even though this is ongoing, it feels even to me kind of like a distant memory. just feel like the attention span for stuff like this for consumers is often pretty short, and if it doesn't actually affect me personally, and why should I do anything about it? Why should I? Go to that inconvenience of pulling on my money out and starting over you know even though it's not that big a deal to start any bank account, but it's slightly inconvenient in them. Right and you're there are. I don't know about you guys, but I will go to extraordinarily lengths to avoid any slight inconvenience. I like a there. was like to play life on easy mode. It barely ever happens, but it's. It's a nice thought You're right. There was a run on the bank but it wasn't necessarily mean there was a lot of. Terrible, PR fall out from this and they went into overdrive on the Bernez Front, but a lot of investors. Reacted because remember they're. They're kind of like customers at bank, but more important. There the better customers, so the bank also wells. Fargo set up a five hundred million dollar fund to compensate the investors who took a hit What do investors say? who took a bath when Wells Fargo didn't tell them. That the banking business they had was not as strong as all his fake accounts made it seem but Asterik that five hundred million dollars is included in that three billion dollars settlement total, so it's not like they pay three billion dollars and five hundred million again. And this leads us to the conclusion as To to your point. To your point mill obviously wells Fargo is still around. It survived the great recession. It assures the public for its part and investors that this will not happen again. This was you know somewhere between a grave miscommunication in the in the command. Or a few bad actors, but the Bank itself, and this is true. The Bank itself never condone this activity. It is true. They just. They forced it to happen. Without realizing it, let's say. But? Here's the deal. Not as though Wells Fargo is acting alone. We've all talked about before the Wachovia dealings and the problems that they had before they were absorbed by Oregon bought out and absorbed by wells, Fargo, the problems with other major banking institutions, including very similarly a little regional bank from Ohio called fifth third. May Have heard of this. You may have seen one of their branches. They've got them all over the nation. There are thousands of them and. They have roughly one hundred and fifty billion dollars in assets and guess what. They're accused of the same thing pretty much the same thing..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"We're back talking more about banking because it's It's not as boring. Might seem you guys. There's some pretty shady stuff going on At wellsfargo Their own analysis by the dead between twenty seven two thousand fifteen found the its employees that opened more than one point. Five million deposit accounts and more than five hundred sixty five thousand credit card accounts may or may not have actually been real. But we can't forget and this is always the point that I when I thought back on this story. These weren't like made up identities. These were like duplicate accounts of real people with. How do they think they're going to get away with this for very long? It just seems like such a desperate move which clearly it was if feels like one of those things that you get away with until you can't and you use sustain what you've got and what how everything is going until it all falls apart. It's building that house of cards situation where you know at some point. The bill comes due. But it's not GonNa be today or tomorrow probably it's like the boiler room you remember that film. Yeah I think I just like the boiler room so I mentioned that but But you're right so some customers. Obviously we're GONNA find out about this because some of those accounts opened in their names had fees so they would get there would be asked to pay these fees on accounts that as far as they knew did not exist. Some customers even had collections agencies. Calling them due to these unpaid fees because again they didn't know that the accounts existed they weren't getting notified of the fees even the first time they would find out about one of these fraudulent accounts is when they were getting shaken down by a collections agency. So just imagine what that does to your credit as well. This has lasting financial consequence for people totally and I mean. I think that you know I'm just guessing here that Wells Fargo Employees were banking on the fact that you know a lot of these fees are a little nickel and dime fees here and there that you might not even notice yeah. I certainly don't Scan Through my bank ledger and try to pick you know. Pick out every single little fee or whatever I mean you know. I definitely glance at it from time to time. But I don't go through with a fine tooth comb and it's such a negligible amount. It's not like you take a big hit to your bank account and all of a sudden think something's up right you know what I'm GonNa do immediately following this episode. Go through that bank account to a lot of people While you're there go ahead and check just in general fellow listeners. Go ahead and check your cell phone bill. See what kind of service charges have just popped up over time and definitely. I'll say it might get in trouble for this but definitely keep an eye on comcast they you know they're voted again number one most company in the US. That's not my opinion. That's a fact. Yeah just whoever? Your is P is really doesn't matter. Just check in check as bills. Keep an eye on them because those plans change right and they're meant to change in ways that you might not be aware of unless you are paying mindful attention so this gaming as they called it. This unethical behavior was so ubiquitous. That even created related kind of term slaying terms internally. There's one called penning and that meant a signing customers pin numbers without their knowledge. That's incredibly disturbing. Because as you know a pin number is supposed to be your is. It's like it's sacrosanct. It's the it's similar to a banks version of your social security number. No one else's supposed to know it but if someone makes a pin number that you do not know that means they can impersonate you on a wells. Fargo computer and then boom boom boom. They can enroll you in all all sorts of quote UNQUOTE PRODUCTS. Without your knowledge. So boom now gotta insurance boom Nanna Carlo. Brunei had a credit card and this was nuts. Because the most mystifying thing about this still is not even how widespread it is to me. It's how blatant was The L. E. Cities Attorney Office found that there are one hundred ninety. Three thousand non employees accounts opened between twenty eleven in two thousand fifteen and get this. The only email name listed for them was Wellsfargo Dot Com just at WELLSFARGO DOT com. Wow Wow it's like not even not even try you know even even doing like level one Improv. I bet he could make. I thought we could make like right now. We could make as many fake names as we wanted Tad Dorgan. That's not a real name. Still better than WELLSFARGO DOT COM. Or you get even if you just put like. C. U. S. T. as in customer and then put a of like you know numbers and letters or something. It's that easy. Jeez I'm and I guess you had to make so many so quickly. Yeah what they did go. Into that point of desperation you know and on September Eighth 2016 Sixteen Wells Fargo did settle with some authorities. They paid one hundred and eighty five million dollars to three institutions the Consumer Financial Protection Bureau the Office of the comptroller of the currency which is a thing and the city and county of Los Angeles. They wanted to settle the charges of massive fraud. As part of this agreement they were able to avoid admitting that they had done anything wrong. Now that sounds familiar and that sounds. Pretty Dang familiar. Tipton be fair. They absolutely had plausible deniability. The only thing they were guilty. I was having high standards. We go there we go. Yeah as you can tell in a universe to the left of this. The four of us are lawyers. Str- I think we'd be good in a courtroom so it's weird because they all they did. They did do one other thing. Aside from one hundred and eighty five million dollars they fired. They fired it around a thousand employees. Maybe a little more and these were mostly juniors. They were fire for gaming if you think about it. These were sacrificial goats. Just sort of meant to be a pitchy. Asian they were they were meant to appease the gods of regulation. We know what you're all thinking what everybody's thinking. Hey one hundred. Eighty five million dollars is Is a big deal to me. But isn't that chump change for such a huge bank? The answer is yes. It is about three percent right. Three percent of second quarter profits of that year so there are four quarters. One of those quarters had to shave off three percent in order for them to be okay. That's crazy it's also way less than Some executives have made over the past. Five years. GENTLEMAN. I propose that we join our forces and start a bank. What do you say? Get Out of the odd casting rat race and START OURSELVES UP BANK. Shirley busy now. You won't do it won't do it. Might soul shall not allow boys. That's fair I I respect that So yeah but started a bank. Yeah well yeah the Ben Bank. Ben Bay deals exhaustively inbox and encumbered by Seoul's yeah also true But you know so you then you understand Ben as as the The head of the the Ben Bank. This is all just the cost of doing business. My Guy Right Yeah Yeah I WANNA say case. This plays in court later. Technically I am not on the Executive Board. I am a consultant so nice. Try for the record. That was me. Lapsing into my douchebag executive voice when I said my guy there I had to walk that back. I like people say my guy. Yeah it has to be tongue in cheek but yeah man seriously. I mean this is was a slap on the wrist is even putting it Strongly you know right. Yeah that's a great point. I mean like a thump on the era you know yeah yeah a finger wag and a strong sentence using your full name. That's that that's the issue with it. Because I mean this literally is a a cost of doing business. They didn't admit wrongdoing. They had plausible deniability in short vis bank. Thought they got away with it until that is employees like Ham Beck started coming forward and there's a there was a list of employees who complained internally because like any large institution there are channels through which you're supposed to send your complaints the list of employees who were squeezed out by this and complaint It stretches back over ten years. People knew what was up. You know like again. We're it might sound like we are vilifying wells Fargo but we're talking about the crimes of an institution really. We're not talking about any of the employees in the banking industry. We're not talking about any the employees in wells. Fargo specifically write these. These people are not the ones who said make these impossible sales quotas. Yeah so as of this year Twenty twenty Wells Fargo has agreed to three billion in settlements For criminal charges a civil action. That's stemming from its widespread mistreatment of its customers in its community bank over a fourteen year period Court papers show. That prosecutors described the insane environment. That ben I mean honest I was responding to you. I said at the top of the show. You know. We're checking in explain to me why you didn't make it. You know justify your every single. I mean sure. Accountability is one thing. But this was very much like You described it Ben in your notes as a pressure cooker environment that was kind of created just absolutely toxic work environment right so to very low level employees. Yeah absolutely this is this is I I. I don't know we've got a lot of people in the audience who worked in sales jobs or something with commission. I don't know if you guys have ever done that. I have not but if feels like a very demanding situation to be put in even when there's absolutely no unethical behavior Most commission sales do not require unethical behavior. But like think about the pressure the next time. You'RE IN BR mortar store. Think about the pressure an employee's under when they ask you this series of questions at a purchase. Like have you ever bought something and you're just by one thing you need like maybe a cable somewhere or you're buying pants or whatever you want to buy and then the cashier starts asking you a series of questions like what your phone number. WanNa sign up for our credit card when a sign up for rewards card and so on your show I always say I'm good like when asked for my phone number or email. No I don't ever want anyone to have because there's no reason for they act like it's Oh so we can better serve you next time or have you my database and know what you like. I don't know why anyone would ever give out their information At a US brick and mortar store like that. 'cause she can you can get special perks guys right. And now we're family. Once they have all my info look just give me a card and punch a hole in it when I buy a thing and then give me a free thing when I punched enough holes in it. You know I'm old school like that. I'm finally yeah so imagine that you are again. We keep trying to put ourselves in the position of the lower level employees at an institution. Like this when you like maybe you have experienced a maybe a quarterly meeting a meeting with your company where everybody gets together and they talk about the state of the company. And what's going on and everything you know is going up or down or for this reason for that other reason things are going great or terribly and Imagine. You're in one of those meetings and you know that you your your bank your local chain of the bank and your manager. You guys didn't meet up to the standards but you guys did everything right and you tried as hard as you could and you made some pretty good numbers. But they're not quite what they were looking for. They're not really even close. Actually but again you did a great job then over this meeting in this caller however it goes some other branch You know let's say dozens of miles away. For some reason. They exceeded this goal. It was way out of reach and on this call your boss's boss's boss on this call says man you guys just just killed it. He did a great job. You guys are just Rockin. These numbers mad. We're so proud of Y'all you're getting bonuses..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"This is all just the cost of doing business. My Guy Right Yeah, yeah, I WANNA say. Case, this plays in court later. Technically I am not on the Executive Board. I am a consultant so nice try. For the record that was me lapsing into my douchebag executive voice when I said my guy there i. Had to walk that back. I, like people say my Guy Yeah! It has to be tongue slightly in cheek, but yeah man. Seriously I mean this is was a slap on. The wrist is even putting it strongly. You know right. Yeah, that's a great point. I mean like a thump on the era. You know yeah, yeah, a finger wag! And a strong sentence using your full name. That's that that's the issue with it because. I mean this literally is a a cost of doing business. They didn't admit wrongdoing. They had plausible deniability in short vis bank. Thought, they got away with it. Until that is employees like Ham, Beck started coming forward, and there's a there was a list of employees who complained internally because like any large institution, there are channels through which you're supposed to send your complaints. The list of employees who were squeezed out by this and complaint it stretches back over ten years. People knew what was up. You know like again, we're it. It might sound like we are vilifying wells. Fargo but we're talking about the crimes of an institution. Really we're not talking about any of the employees in the banking industry. We're not talking about any the employees in Wells Fargo specifically write these these people are not the ones who said make these impossible sales quotas. Yeah, so as of this year, twenty twenty Wells Fargo has agreed to three billion. In settlements for criminal charges a civil action that's stemming from its widespread mistreatment of its customers. In its community bank over a fourteen year period, court papers show that prosecutors described the insane environment that Ben I. Mean Honest I was responding to you I said at the top of the show. You know we're checking in. Explain to me why you didn't make it. You know justify your. Every single I mean sure accountability is one thing, but this was very much like You described it Ben in your notes as a pressure cooker environment that was kind of created just absolutely toxic work environment right to very low level employees. Yeah, absolutely, this is. This is I I. I don't know we've got a lot of people in the audience who've worked in sales, jobs or something with commission. I! Don't know if you guys have ever done that. I have not but. If feels like a very demanding situation to be put in. Even when there's absolutely no unethical behavior most commission sales do not require unethical behavior, but like think about the pressure the next time you're in Br mortar store, think about the pressure. An employee's under when they ask you this series of questions at a purchase like. Have you ever bought something and? Buy One thing. You need like maybe a cable somewhere or You're buying pants or Whatever you want to buy, and then the cashier starts asking you a series of questions like what your phone number WanNa. Sign up for our credit card when a sign up for rewards card and so on. Your show. I always say I'm good like when asked for my phone, number or email. No I don't ever want anyone to have because there's no reason for they act like it's Oh, so we can better serve you next time or have you my database and know what you like I. Don't know why anyone would ever give out their information. at a US.
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"U. S., T. as in customer and then put a. Of, like you know numbers and letters or something. It's that easy Jeez? I'm and I guess you had to make so many so quickly. Yeah what they did. Go into that point of desperation, you know and on September eighth 2016. Wells Fargo did. Settle with some authorities. They paid one hundred and eighty five million dollars to three institutions the consumer financial protection bureau. Of the comptroller of the currency, which is a thing and the city and county of Los Angeles. They wanted to settle the charges of massive fraud. As part of this agreement. They were able to Avoid admitting that they had done anything wrong now. That sounds familiar. And that sounds Pretty Dang familiar. Tipton be fair. They absolutely had plausible deniability. The only thing they were guilty, I was having high standards. We go there. We go, yeah, as you can tell in a universe to the left of this. The four of us are lawyers. Str- I think we'd be good in a courtroom, so it's weird because. They, all they did, they did do one other thing aside from one hundred and eighty five million dollars. They fired. They fired it around a thousand employees. Maybe a little more, and these were mostly juniors. They were fire for gaming. If you think about it, these were sacrificial goats, just sort of. Meant to be a perpetuation they were they were meant to appease the gods of regulation. We know what you're all thinking. What everybody's thinking? Hey! One hundred eighty five million dollars is is a big deal to me, but isn't that chump change for such a huge bank? The answer is yes. It is about three percent right three percent. Of, second quarter profits of that year, so there are four quarters one of those quarters. Shave off percents in order for them to be okay. That's crazy. It's also. Way less than some executives have made over the past five years. gentleman I propose that we. Join our forces and start a bank. What do you say? Get. Out of the odd casting rat race and start ourselves up. Bank. Shirley! Now you won't do it won't do it. Might soul shall not allow boys. That's fair I i. respect that so yeah, but. That started a bank. Yeah well yeah. The Ben Bank Ben Bay deals exhaustively inbox encumbered by Seoul's yeah. Also true but you know so you then you understand Ben as as the the head of the the Ben Bank. This is all just the cost of doing business. My Guy Right Yeah, yeah, I WANNA say. Case, this plays in court later. Technically I am not on the Executive Board. I am a consultant so nice try. For the record that was me lapsing into my douchebag executive voice when I said my guy there i. Had to walk that back. I, like people say my Guy Yeah! It has to be tongue slightly in cheek, but yeah man. Seriously I mean this is was a slap on. The wrist is even putting it strongly. You know right. Yeah, that's a great point. I mean like a thump on the era. You know yeah, yeah, a finger wag! And a strong sentence using your full name. That's that that's the issue with it because. I mean this literally is a a cost of doing business. They didn't admit wrongdoing. They had plausible deniability in short vis bank. Thought, they got away with it. Until that is employees like Ham, Beck started coming forward, and there's a there was a list of employees who complained internally because like any large institution, there are channels through which you're supposed to send your complaints. The list of employees who were squeezed out by this and complaint it stretches back over ten years. People knew what was up. You know like again, we're it. It might sound like we are vilifying wells. Fargo but we're talking about the crimes of an institution. Really we're not talking about any of the employees in the banking industry. We're not talking about any the employees in Wells Fargo specifically write these these people are not the ones who said make these impossible sales quotas. Yeah, so as of this year, twenty twenty Wells Fargo has agreed to three billion. In settlements for criminal charges a civil action that's stemming from its widespread mistreatment of its customers. In its community bank over a fourteen year period, court papers show that prosecutors described the insane environment that Ben I. Mean Honest I was responding to you I said at the top of the show. You know we're checking in. Explain to me why you didn't make it. You know justify your. Every single I mean sure accountability is one thing, but this was very much like You described it Ben in your notes as a pressure cooker environment that was kind of created just absolutely toxic work environment right to very low level employees. Yeah, absolutely, this is. This is I I. I don't know we've got a lot of people in the audience who've worked in sales, jobs or something with commission. I! Don't know if you guys have ever done that. I have not but. If feels like a very demanding situation to be put in. Even when there's absolutely no unethical behavior most commission sales do not require unethical behavior, but like think about the pressure the next time you're in Br mortar store, think about the pressure. An employee's under when they ask you this series of questions at a purchase like. Have you ever bought something and? Buy One thing. You need like maybe a cable somewhere or You're buying pants or Whatever you want to buy, and then the cashier starts asking you a series of questions like what your phone number WanNa. Sign up for our credit card when a sign up for rewards card and so on. Your show. I always say I'm good like when asked for my phone, number or email. No I don't ever want anyone to have because there's no reason for they act like it's Oh, so we can better serve you next time or have you my database and know what you like I. Don't know why anyone would ever give out their information. at a US.
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"U. S., T. as in customer and then put a. Of, like you know numbers and letters or something. It's that easy Jeez? I'm and I guess you had to make so many so quickly. Yeah what they did. Go into that point of desperation, you know and on September eighth 2016. Wells Fargo did. Settle with some authorities. They paid one hundred and eighty five million dollars to three institutions the consumer financial protection bureau. Of the comptroller of the currency, which is a thing and the city and county of Los Angeles..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"It's exactly like that and quote. To quote Yates from the Second Coming, the center could not hold right or to paraphrase. This was unsustainable and very very soon things would fall apart will explore the fallout which continues today afterward from our sponsors. And we're back talking more about banking. Because, it's It's not as boring might seem you guys. There's some pretty shady stuff going on at Wellsfargo. their own analysis by the dead between twenty, seven, two, thousand, fifteen found the its employees that opened more than one point, five million deposit accounts and more than five hundred sixty five thousand credit card accounts. May Or may not have actually been real. But. We can't forget and this is always the point that when I thought back on this story. These weren't like made up identities. These were like duplicate accounts of real people with. How do they think they're going to get away with this for very long? It just seems like such a desperate move, which clearly it was. If feels like one of those things that you get away with until you can't, and you use sustain what you've got, and what how everything is going until it all falls apart. It's building that house of cards situation where you know at some point, the bill comes due, but it's not GonNa be today or tomorrow. Probably it's like the boiler room. You remember that film. Yeah I think. I just like the boiler room, so I mentioned that but but you're right so some customers. Obviously, we're GONNA. Find out about this. Because some of those accounts opened in their names had fees, so they would get. There would be asked to pay these fees on accounts that as far as they knew did not exist. Some customers even had collections agencies calling them due to these unpaid fees because again. They didn't know that the accounts existed. They weren't getting notified of the fees. Even the first time they would find out about one of these fraudulent accounts is when they were getting shaken down by a collections agency. So just imagine what that does to your credit as well. This has lasting financial consequence for people totally and I mean I think that you know. I'm just guessing here that wells. Wells Fargo, employees were banking on the fact that you know a lot of these fees are a little nickel and dime fees here and there that you might not even notice yeah, I, certainly don't Scan Through my bank ledger, and try to pick you know. Pick out every single little fee or whatever I mean you know I definitely glance at it from time to time, but I don't go through with a fine tooth comb, and it's such a negligible amount. It's not like you take a big hit to your bank account, and all of a sudden think, something's up. You know what I'm. GonNa. Do immediately following this episode. Go through that bank account. To. A lot of people while you're there. Go ahead and check. Just in general fellow listeners go ahead and check your cell phone bill. See what kind of service charges have just popped up over time and definitely I'll say it might get in trouble for this, but definitely keep an eye on comcast..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"Crazy. So, let's say you don't have enough accounts well. Why don't you make them up as early as twenty eleven? Like nine years ago easily. Outfits like The Wall Street Journal started noting this enormous internal pressure that wells fargo was exerting everybody from the bank manager. Level on down they were supposed to measure up to these incredibly difficult sales quotas, these cross selling quotas. These were cartoonish Louis implausible vanity. Fair in fact noted that several of these goals were proven to be literally mathematically impossible to achieve. That's nuts like even if you pitched everything to everyone. Every single customer got every single offer possible, and they all said yes, you still wouldn't meet the quota at some points. That's crazy, that's. It really is so so imagine that you are. Let's say a bank manager or one of the main sales persons at bankers. Or just salesperson at the bank imagine that you are aware that you are expected to sell x number of new accounts or open x number of new accounts and you. You know you see like you literally physically see x minus fifty people a day right so you know that there's no way you're going to do that. There's no possible way. What do you do when you know your job is? is on the line good. That number is directly related to how well you do. If you can get a raise at some point if you can keep your job even well. They started doing something that they weren't supposed to. And that's just opening new accounts that would count towards their quota, but wouldn't actually be tied to somebody who wanted an account. Wait a minute wait. Isn't that called fraud? Ding Ding Ding? Yes, it is indeed. There is There's a guy named Dennis Ham back who, once upon a time was an employee wells Fargo now. This guy had extensive banking experience was his career. He was He got into banking as a young cat before all these massive consolidations ripe before the financial whales start swallowing the other smaller, financial fish and. Whales are mammals. You'll get it. You know what I'm talking about so. He said this in a quote just to hammer home that point. That you made about how intense this pressure was. He said every morning we had a conference call with the managers. You're supposed to tell them how you were going to make your sales goal for the day, and if you didn't you had to call them back in the afternoon, explained how you why? You didn't make it and how you going to fix it. It was really tense..
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"A product in just from personal experience, there are so many different kinds of products that these retail banks offer customers that seem extremely similar, but there's like seven different kinds of checking account. There's like six different kinds of savings accounts, and all this other stuff, and it's also that you can offer exactly what the customer needs. The yeah the customer. Not The client. Convenience. It's definitely not you guys. It reminds me of when I got my car loan a handful of years ago and like they made me. You know this this offer of this interest rate and it was like higher than I thought I should be offered because I. Really Good Credit and I was GONNA walk away. They said Oh. Wait a minute now. We didn't know if told us you wanted to low that we would have been like. Like, what like just offer me the rate that I am do based on my score. Like? Why are you trying to nickel and dime me? It's the same thing and this was through a small community bank, but it was all like you know. At the hands of these kind of sleazy cardio has not malign all car dealers there I'm sure many of you are great most of even, but this one in particular. I felt very. kind of bent over a barrel a little bit. I got him down to where I wanted to be, but I felt Kinda Achey. The whole thing made me feel like I didn't want to do business with them anymore. Yeah Yeah. It's good to the anecdote I. Always think of is like imagine you walk into a fast food restaurant and you you order I don't know a cheeseburger and they're like all right. Do you want poop on your cheeseburger? Don't why? Why is that part of the conversation that now I don't even want the Burger Gee we'll look. We gotta get rid of all this poop somehow, and if you'll accept it on your Burger, then you know we're getting rid of it in that way and you're getting what you want. We'll give you a loyalty card. How about an Amazon Gift Card? So so that's I mean it's True No. Matter I had to. I had to interject a little like I think it could be advertised convenience this plethora of options using correctly. Yes, it is yeah, but I think what it's I think what is really meant to do is to make things inconvenient to make it more difficult to find the right deal the options are. Arcane by design you know. Just like a life insurance or just like a A, Lotta, medical insurance or health insurance plans function that way. That's just a that's just a byproduct of private industry trying to maximize profit, because a lot of people won't do the Research Wells Fargo. was really really good at this. They were considered for some time and not insignificant amount of time the best seller in the retail banking game, but there was one problem. I know just one Maybe you know why there's a problem. Yes, why because imagine if you're the best seller at something? Now imagine your numbers are on a really nice trajectory upwards. Now in order for you to maintain profitability and to increase year over year. Increase. You have to continue your track rate as the bestseller right, and then over achieve not to mention. You want to get that set of steak knives. and coffee's for closers, so you WANNA get coffee. You don't WanNa get cut off. You need that stuff to sell. Right, it's the unsustainable unsustainable growth model, exponential growth model of capitalism year-over-year, and it applies to a lot of industries, so I I mean. That's what I was GONNA say. I said there was one problem, but really there were millions of problems you see Wells Fargo and other banks were getting out of new accounts. Getting a lot of new customers cross selling, but these accounts it turns out. Were made up out of thin air. What are we talking about? We'll tell you afterward from our sponsor. Here's where it gets.
"wells fargo" Discussed on Stuff They Don't Want You To Know Audio
"UFO's to psychic powers and government conspiracies. History is riddled with unexplained events. You can turn back now. or learn the stuff they don't want you to know. A production of IHEART breeding. Hello welcome back to the show. My name is Matt. My name is Noah. They called me Ben. We're joined is always with our super producer. Paul Mission Control second most. Importantly you are you. You are here and that makes this stuff. They don't want you to know a quick check in I think this is the first time any of us have spoken today or at least Matt. You were notes I I'm spoken with you, Paul I go way back today How's it going, guys? It's going really well. Having all kinds of interesting phone calls with people that I've never met until today. So this is just a day of new things really anything to write home about not yet. No I see. Very Cryptic Matt I like it I'm intrigued I. Have had some unusual phone calls with people that I have never met and may never mean who knows if I'll ever even leave my house again. But. I'd like to think that there is a future where I will be able to get on an airplane one once again, 'cause. That's fun. It's fun to go other places. We'll see what happens. Yeah, I'm actually doing some. Doing some runs later today? to you know people immuno-compromised. It's tremendously bad idea for them to leave their house even if they're in an area like Georgia, where the local leadership is attempting to open up various businesses and institutions so I'm GonNa go do some no contact drop-offs. If you are immuno-compromised, please please please still don't go outside. Even if everything else is open, it's just not worth it. Yeah, Guy I know in Brooklyn. who got covid nineteen. It was a mild. Mild case, but he just got the go ahead from his doctor to to leave the house and he poses birthday today, actually so happy birthday not going to say his name 'cause he may not want to people to know that he had the thing but happy birthday to you, my friend and really glad to see you get now. And he had. He had a mask on keeping a super-safe but Yeah, it's gotTa be tough. You know just like having. That level of isolation, especially, if someone lives by themselves and speaking of crises it's safe to say that our current financial system like many individuals in the world today is in a state of crisis. This is yet another crisis for the financial system. By the way I think by the time people reach the age of. Let's say I don't know arbitrarily eighteen. They've already experienced several huge behemoths of financial crisis. Individuals in countries around the world right now are being told to shore up their finances, and they're being chastised for a quote. Unquote, poor financial planning while at the same time billion dollar corporations are getting bailed out left right over and under some people would call this the way the world some would call it a series of conspiracies yet the world of financing conspiracy. They're inextricably intertwined. You know you could even say the concept of money. itself is a conspiracy. As a matter of fact, we have set that on previous episodes. Stick to my guns on that one banks have been accused of multitudes of financial crimes, many conspiracies, and even times assisting with things like government overthrows or coup d'etats. This is not to say that all banks are all bad right now..
"wells fargo" Discussed on The Journal.
"Eventually almost every business unit at the bank would be put under investigation by Federal Agency. Basically it causes the bank to have this thing that is just so sprawling this problem with regulators and prosecutors. It's quite difficult for these sprawling investigations started to have consequences in two thousand eighteen. One of the most extreme measures to be issued against any large bank ever came from the Federal Reserve. The Fed put a growth cap on the bank. Basically telling Wells Fargo that it wasn't allowed to take on more assets than the amount already had essentially. They're saying your bank is not responsible enough to grow any larger. Wow yeah significant. Is something like that. Has the Federal Reserve drivers? You can regulate banks as it ever done anything like that. I mean not on this scale not too large very well-known important bank. It not only was it just such a shift from only a few years earlier when they were seen as a paragon of responsibility and an extremely safe fank and within a very short period of time you have the Fed saying oh no actually. You really aren't that at all and we must step in and do this thing because we think that your shoes are really out of control on some level all of these issues. The management turnover the government investigations and then the feds cap on growth. It all dragged the bank's business down. Revenues are declining. They're not able to focus on on the business strategy. Very much in their two biggest rivals shaping Morgan and Bank of America. They're making an enormous amount of money and they are passing Fargo and everything early last year. The scandal claimed it second. Ceo AND WELLS. Fargo spent several months with nobody in the chief executive seat the newest CEO who just started a few months ago said his biggest priority was to find a way to resolve all the open investigations into the banks business. And now that started to happen last week. Wells Fargo reached a deal that resolves some of those probes gets a three billion dollar settlement with the Justice Department and Securities and Exchange Commission. It settle civil and criminal charges and on top of the mountain money that they're paying. They have a so-called deferred prosecution agreement. Basically what it means is that the Justice Department reserves the right to charge wells. Fargo one day if they don't think that they're living up to the expectations of the agreement. As part of the agreement the bank must continue to cooperate with the other investigations. That are still open. It also had to admit to list of facts that it unlawfully misused customers sensitive personal information that it harmed the credit ratings of customers and that it collected millions of dollars in fees and interest in the process after the settlement was announced the new CEO said the conduct at the bank that led to the fake account scandal had been reprehensible and then in the past three years the bank had made changes to its business model compensation program leadership and governance but regulators didn't just go after the company the former CEO John Stumpf also reached his own deal which included in extraordinary penalty. John Stumpf agrees to the settlement in which he will be banned for life and he has to pay a very large find as well banned for life. Yes from the banking from the banking industry. Wow how significant is that? It not something that I believe has ever happened before large banks. What do you make of the fact that individual executives are being held accountable for this scandal? When that's not even something that happened after the financial crisis which caused way more harm to the overall economy. Yeah that's completely true. It kind of speaks to how notorious of scandal this became a lot of the financial crisis stuff was very arcane. It was steph related to mortgage backed securities. And all of these things that are very complicated to understand but the idea that a bank opened up millions of fake counts for people is actually pretty easy to understand and get really mad about. There was an enormous amount of criticism for not penalising individuals after the financial crisis for the deeds caused the financial crisis. And it's something that people who have key regulatory roles definitely took to heart the tough settlements that the government was able to reach could be seen as a sign that to regulators. The scandal was the result of systemic issues. Not just a few bad apples but there have been consequences for rank and file employees to people who continue to work at Wellsfargo after the fake account scandal came to light say the bank has been trying to root out anyone who could have possibly been involved. What we found through our reporting was there was a huge push to investigate and find all the people who had done the fake accounts beyond the initial fired. People people were getting investigated all the time. You know you'd get called up and they would say. Do you remember this account. You opened in two thousand and eight for this person and these have open thousands of accounts in their lifetimes. They wouldn't even remember and even for people who have left the company because of the scandal the consequences are still following them around a interviewed. A bunch of folks I that we did last year about all the fired employees and kind of whether they've been able to find work a lot of these people have been out of work for months or years habitat 401k's to stay afloat and we talked to employees who would say having that on their resume has just like irreparably hurt their careers. Job prospects their lives. I mean on the one hand. Wouldn't some people say that? Even though these are lower level employees they still broke the rules and so shouldn't they still suffer the consequences as well? People who were at that very low levels say their managers told them to do it. When I wrote the story there were a lot of folks who wrote in. And we're very sympathetic to these people and said that's terrible that these low level people are bearing the brunt of the scandal. That happened a long time ago and then there are other people who said. I'm sorry but I don't want anyone working at a bank..
"wells fargo" Discussed on The Journal.
"The committee will come to order soon. After the details of the fake account scandal became public congress demanded more answers from wells. Fargo but I today. We were received testimony from John Stump. He's Wells Fargo Wells Fargo. Ceo and chairman. Who's with us today? Welcome to the show a few weeks after the settlement goes before a very important Senate committee. I am chairman and Chief Executive Officer of Wells Fargo and it just is a complete disaster being this partisan age. What was really remarkable. Is that both sides of the aisle. Just irate Republicans are being incredibly hostile to him. Elizabeth Warren is just. That was very good for you personally. WasN'T IT MR STUMPF? Extremely angry and his responses were very term. I know this. They broker our code of ethics. They were dishonest and he reiterates that it's the level people and you know doesn't really provide very much information. He comes across as a little bit evasive and each answer just like makes them angrier and angrier. Evidently your definition of accountable is to push the blame to your low level employees. Who Don't have the money for a fancy pr firm to defend themselves. It's godless.
"wells fargo" Discussed on The Journal.
"Two thousand fifteen business was good for Wells Fargo? It was seven years from the financial crisis. And they're really the only big bank that comes out pretty unscathed. They're making tons of money at this point financially. They're doing great especially whenever grasping to find a way forward. Rachel and sign covers banking everyone else in the doghouse but wells. Fargo is seen as this old fashioned plain vanilla bank that just focuses domestically they take loans they make deposits and they're very proud of how well they're doing and they're sort of perceived at this time to be a good guys definitely. Fargo road this reputation to becoming the most valuable bank in the world but as good guy image would soon be destroyed as revelations emerged that Wells Fargo. Employees had been opening millions of fake accounts. It's a scandal that engulfed the bank for the last three years toppled to CEO's sparked multiple government investigations and last week cost the bank. Three billion dollars in the latest fine today on the show what happened at Wells Fargo and who should take the blame for what went wrong. Welcome to the Journal. Our show about money business empower. I'm Caitlyn and I'm Ryan. It's Thursday February twenty seven in September of Twenty Sixteen Wells Fargo settled in investigation with the government that it hoped wouldn't get much attention but when the specifics of the settlement came out it quickly became a much bigger deal. The settlement show that employees at Wells Fargo branches had been setting up accounts that nobody had ever asked for and the number of these accounts was staggering in the settlement documents. That comes out that there have been millions of these fake accounts bent millions millions checking accounts savings accounts credit cards personal loans. I mean what they say is that it was the culture. Basically what you had were these extremely aggressive goals that were set by the very top of the bank. These goals were part of a legitimate business. Strategy executives knew that the more accounts people had the more revenue. The bank was likely to make per customer so they pushed employees to sign people up for as many accounts as possible. The way it was supposed to work was that if somebody walked into a bank branch wanting to open a checking account employees would also try to sell her a savings account. Maybe a credit card to the strategy was called cross selling. It'd been a key part of Wells Fargo's business approach since the nineteen nineties. The idea was that the various things that have been could give you a loan checking account a savings account. They were like products in a store and idea was that they wanted to give you as many as possible. Wells Fargo was actually very public about this policy and was proud of how good it was getting customers to sign up for multiple products for years. The story that the bank was tying the outside world was. We're so good. At selling people multiple products. They had a goal of eight products. Were so good at making sure that the typical person who walks in our branch and gets a checking account a few years later has eight. Different products is that the slogan of the bank is to have go for great. Yes but this sales culture had gone awry. What the two thousand sixteen settlement revealed was that managers were putting intense pressure on workers in Wells Fargo branches to reach their targets. The way that that played out day to day was people whose managers would check in multiple times a day and be like okay today. You said you would open ten checking accounts. How many do you have former employees? I spoke to just describe a culture of Mrs. I've heard this from a lot. A pupil of constant checking in constant hovering by the managers to make sure that they're meeting their goals just an enormous amount of pressure. To do literally whatever you could just to keep your job. I mean. There wasn't incentive component to it where you weren't going to reach your bonus if you didn't meet the goals but a lot of it was just like existential fear being fired from your job which is a pretty big and you have to put yourself in the shoes of the typical bank branch employees. I mean these are the people who were the lowest level folks at the bank. They a lot of times. They didn't go to college and they have a job with good benefits at a big company which can be pretty hard to get many employees. Felt like they just couldn't hit the targets their managers or pushing them toward so to hit their numbers in order to keep their jobs. The settlement revealed that employees started going to extremes. They started opening fake accounts so there are a few different tactics. One was a lot of the accounts were made for real people so they might know that you Ryan were wells Fargo customer and just you know pull up your information and put it in as if you had asked for a second checking account. I don't know why you would have needed a second. Jackie and they would put in fake information a lot of times they would put in a wells. Fargo email address so that you would never receive notification that you got an account. Employees had other tactics to in addition to making extra accounts for existing customers. Employees tried to pull in anyone they could to set up accounts they called friends and family members asking them if they could open a checking account or new credit card in their name and employees sometimes left the bank branches to canvas people who might be easier to quickly sign up so they would go to retirement homes and other places and just try to pitch as many people there on bank accounts as possible. I think the Mexican consulate was one of the places. Those like places where people may not necessarily know what they're signing for right and that was one of the questions that came out of the initial 2016 settlement which was were they targeting folks who might not be as vigilant or might not be native English speakers and understand the disclosures documents that were sent to them as part of the two thousand sixteen fake accounts settlement. The bank agreed to pay a one hundred. Eighty five million dollar fine over what we're called quote. Widespread illegal sales practices but executives at Wellsfargo at the time seemed unprepared for how the news would be received after all wells. Fargo had only made a few million dollars from the whole scheme wells. Fargo thought that like many banks settlements it would just be like a one day thing. We'd right shirt story about it. And then move on and they could just continue on being the best bank in the world over. Yeah but it did not blow over it. Blew Up I. It's what we got big scandal at Wellsfargo. That's what we got. I mean big developing tonight from the live desk the next step in the Wells Fargo scandal the escalating wells. Fargo scandal could go all the way to the CEO's office with a backlash building top executives at the bank had to come out and do some more explaining in the following days the bank CEO. John Stumpf did an interview with the Wall Street Journal where he placed the blame on bad employees. He also said the perpetrators had been fired over the years. The bank had fired more than five thousand mostly lower level employees in connection with the fake accounts. They respond Mrs both the CEO and CFO with the view. That this isn't a big deal. This is over with the settlement and this is really just a few bad apples. So they're low level people who didn't understand culture didn't act the right way the CFO. At the time said this is completed matter but the matter was anything but completed and by seeming to minimize the scandal. Wells Fargo Stoke the anger of the public and federal lawmakers. And that would open the door. Even wider set of problems for the bank. That's after the break..
"wells fargo" Discussed on Opening Arguments
"Because wells fargo is doing really shitty things got behind the payments defaulted on something the stress it caused their family the you know the god knows what else happened as a result of that financial situation we don't you don't really see it but it's that's they are victims of a crime in a way that if you rob somebody there victim of e you know what i mean like it's a little detached so we don't really think of it it's like oh well they just you know push some numbers around so they're not violent criminals and it's like well look at the results yup i totally agree i i think you know put that really really well all right well it is time for our cofavourite segment of the weekend that is thing here new patrons and you know what here's something i can't believe i didn't do earlier for you guys we've always used our email to kind of keep track of like who is signed up recently on patriotic and whatever and what people pointed out is that means if you sign if you pledge patriot dot com slash law and then you change your name after to try to get get a good shout out than it wouldn't have been included so what i'm gonna do here is i'm going to change the way we do that and all all make sure we're still tracking who need to thank but we're gonna go into patriot self so that we can get your updated shout out names when we read your name why so sorry sorry i didn't do that sooner i really should but it just wasn't something i really thought about but that is going to be the new policy and with that said let's get to it and our new patrons are zachary morris kyle patterson michael burns tipped out lama.
"wells fargo" Discussed on Opening Arguments
"Right you have auto insurance i have auto insurance right so that's not a problem for us we get the provides trolley people who are what inexperienced or don't or don't know you know what's going on in tirlian easy easy marks for the frigging wells fargo gosh how many different unethical schemes anyway go so how many again knowing your sort of incredulity of really they bought the insurance for you and then charged you back through the loan like how many how many of those loans do you think they placed in the past ten years from two thousand five to two thousand fifteen i just i don't have any concept of how many they're doing i couldn't tell you two million wow that's a lot yeah and the allegations are right so and so let's be clear right like the scheme itself is perfectly legal right the you come in you don't have insurance wells fargo gets it for you as a condition of giving you the loan and then rolls the payments into the loan collects the money takes a cut and pays your insurance premiums that's one hundred percent legal but of course it's wells fargo so they were satisfied with that that two million number includes the allegations are hundreds of thousands of times in which the borrower d did have auto insurance they snuck it in kind of the agreement and just you didn't notice and it included the flip side of that where they would initially kind of give you this quotation you don't have insurance than the buyer would say okay well i'm gonna get my own insurance i just want the value of the car and then wells fargo would never refund back or cancel the the insurance that was part of the lung which again their policies said if you get other insurance than you know you get off of this garbage insurance of last resort then you know you don't have to pay us anymore and they decided that you had to you had to pay it anyway as a result lots of people who were expecting to pay a thousand dollars a month and all of a sudden we're now having to pay fifteen hundred dollars a month on their car payment got behind on their loans and so from the period twenty eleven to twenty sixteen.
"wells fargo" Discussed on Opening Arguments
"Right there's a there's a window yeah and typically what you do is if you if you exceed the window then what customers will try and do with respect the to the to the to the bank is to get an extension right to say okay i get it there was there was a problem we went the inspection turned up this you know whatever and so we want we went extend beyond the window and then the question is okay you can extend the rate locked beyond the window but the bank is going to charge you a fee and then the question is who's responsible for the fee and win in particular when wells fargo itself was the reason for the delay their internal policy was we'll pay the we wells fargo will pay the feet all right do you want to guess whether wells fargo paid the fee now of course not they guess no they didn't pay the they charged it back to their clients and and and you know i'm sure many people listening have gone through that the home buying experience so many damn documents and fees and nonsense i mean it's pretty easy to smuggle this in somewhere just pages and pages of crap and you go you show up at closing and that's exactly right like there are literally hundreds of pages of documents i will tell you i read more of my closing documents when i when i bought my house than i think anyone ever and even i kinda gave up like halfway thrilling you just too much it's i read quickly and i'm a lawyer and it's boilerplate but you know at some point you just sort of give up and sign and yeah and i just hope i'm not getting screwed yet whatever.
"wells fargo" Discussed on Opening Arguments
"America so should go ahead and ask you okay wells fargo yeah this is interesting i mean of course gosh it's been a while by now but the whole fake account stuff the whole that thing so there's a there's been updated settlement right there been updated orders that were just issued that imposed new fines on wells fargo that were issued concurrently by the consumer finance protection bureau oh that's still exists yeah mic nick mulvaney he's mostly impotent entity and the department of the treasury and in particular the office of the comptroller of the currency so let's get into that this is an area that i think is i think i think both sides are kind of mischaracterizing a little bit i certainly have seen a lot on the left that have argued that you know this is totally insufficient and then you know seen a lot on the right saying see this proves that you know mick mulvaney is totally intends to run a robust cfp and and i think i think the truth is in the middle so let's do it all right both sides good people science okay yeah kanter telling you that centrist money is going to come start hey sometimes on particular issues sometimes the center you know hope so so here's here's where we are back in one forty six we talked about how outgoing fed chair janet yellen the last thing she did i mean literally like the paper she left on her desk as she was turning out the lights was a cease and desist order against wells fargo in connection with the overall pattern and practices of fraud which included most publicly the creation of fake accounts in order to incentivise you know by various wells fargo employs were opening a fake accounts for their account holders in order to earn bonuses and you know we're charging back all sorts of fines and stuff that cease and desist is is still in place and that was the one that our next president united states elizabeth warren called meaningful because it it did too.