37 Burst results for "Wells Fargo"
Fresh "Wells Fargo" from WTOP 24 Hour News
"Keep friendships alive without missing a beat, visit. Wells fargo dot com slash thinking something that more and more fast. BJs wholesale brings your door to get more time doing things like not just 1 38 murder any extra muscle with transit center much for the ways in Maryland person. It is not being built and put in your waistband on the Washington, please. I've got to look a little past never stopped. Don't be. Don't be apart boy near 1 97 left side was blocked for the tree. Terming work their route 50 across the Bay Bridge. Two way operations continue to run on the westbound span with three lanes east and two lanes open in the westbound.
Des Moines leaders exploring development of college basketball 'bubble' at Wells Fargo Arena
"One Midwest City is making a pitch to host a college basketball bubble. This week. The double announced Division One college basketball will start November 25th two weeks later than the original scheduled start. The hope is over the Thanksgiving holiday. There will be fewer students on campus allowing for a bubble environment for the athletes made the cove in 19 pandemic. But leaders in Des Moines are pitching a college basketball bubble. With high major and mid major teams playing against each other at Wells Fargo Arena and staying at De Moines hotels. It's still unclear if the division Counsel will approve nonconference games this season.
Fresh update on "wells fargo" discussed on Ric Edelman
"Guess what's gonna happen when the weather turns cold and nobody's dining outside and everybody's going inside. Guess what's going to happen? Yes. You just saw my latest prediction. Meanwhile, we have the president's payroll tax deferral plan. You know, the Social Security tax, the president's executive order said. You don't have to pay it. If you're a federal employee, you are not paying Social Security taxes for the rest of the year. That's true if you're in the military as well, even if you're a civilian employee of the Defense Department, But most private companies are not participating. CBS Wells Fargo. Even the Postal Service is not implementing this CBS has issued a statement saying the program is quote not in our employees. Best interest, Wells Fargo said. Quote. We want to avoid creating a future financial burden for employees. That's because starting in January you got to pay the money back, which means not only will the Social Security taxes resume, you'll also have to pay the taxes you didn't pay for the rest of this year, which means a double tax withholding. Creating a real problem for people who are not saving any of their pay. Even a lot of state and local governments are ignoring the program. Oklahoma and Indiana aren't doing it for their state employees and their governors are Republicans. So long coms Kevin Brady Congressman from Texas. Ranking member of the House Ways and Means Committee. He wants every worker in America to participate in this. So he's introduced a bill last week that would stop Social Security tax withholdings for all workers across the country for the rest of the year, making President Trump's executive order mandatory for everyone. What about the damage to Social Security by not collecting those taxes. Well, he says Congress will give the Social Security Administration the money. $100 billion is what it's going to take. We'll have to see if that legislation goes through. We all know it's going to be the solution to all of this the vaccine, But some listeners don't like me talking about the vaccine, and I'll.
Old Rail Cars Find New Life As Artificial Reef Off New York's Long Island
"Cars, They're going to help Marine life on Long Island Governor Cuomo was out on the island today to announce a donation by Wells Fargo for a project three miles out from Point lookout on Jones Beach. We're going to be dropping 70 rail rail cars cars into into reefs reefs as as structure structure on on the the bottom. bottom. You're You're also also we're we're also also going to be doing vessels, a tugboat turbines, etcetera array of equipment array of material that makes diving interesting. The governor says the artificial reefs help in many ways with shoreline erosion, Fisheries and with tourism. The New York City
This Week in Philadelphia
"Park has reopened some sites to visitors, including Independence Hall and the Liberty Bell restaurants in the city could have indoor dining at 25% capacity and center City Restaurant Week begins on Sunday. Philadelphia Fringe Festival kicks off this weekend. It is mostly virtual swing by the Elmwood Park Zoo for a live Tarzan performance. Pre register four seats or do a drive in style. I would not be just a number. It's scarecrow season at peddler's Village. You could even learn how to make one of your own. Do you think if I went with you, this wizard would give me some brains and because of overwhelming demand. Jurassic Quest Dino Driving at the Wells Fargo Center has been extended through September 20 for more of the K Y w to do list. Go to K y w news, radio dot com slash to do 3 25. It's money news on
Mall owners Simon and Brookfield to rescue J.C. Penney
"To a Vegas shopping mall owner Stepping in to help J. C. Penney. Out of bankruptcy Carol, the business analyst, David Johnson, saying Plain obeys Penny has deals with companies that own hundreds of malls across the country. In essence, they have reached a tentative rescue deal with their landlord, Simon Property Group in Brookfield Property Partners. They've got a couple of billion dollars coming to him. From Wells Fargo and the name J. C. Penney. You may just be around for a
When Covid Subsided, Israel Reopened Its Schools. It Didn’t Go Well.
"Since its debut and twenty seventeen, the Chinese APP tick tock has become one of the fastest growing social media tools with more than eight hundred, million active users. The APP lets users make short videos that are often shared across the Internet, but Tiktok isn't all fun games for months. Now, a lot of the attention about the APP has been focused on the national security concerns and the collection of user data, and as a result, the platform has been banned in India, by multiple branches of the US military and by Wells Fargo employees most recently however, president trump took aim at tiktok himself by threatening to ban the APP. We're looking at Tiktok we may be banning TIKTOK. We may be doing some other things, a couple of options, but a lot of things are happening. So we'll see what happens but we are looking at a lot of alternatives with respected dictum. Those remarks were before reports surfaced that Microsoft was pursuing a deal to buy TIKTOK in a press conference at the White House yesterday president trump claimed Microsoft or any other company would have to wait until September fifteen to acquire the APP and would be expected to give a percentage of the profit from the sale to the US Treasury. Joining me now is Graham Webster editor of digit China Project at Stanford University's Cyber Policy Center and a fellow at New America Graham thanks for being with us. Thanks for having me. And Cowan Rosenblatt is a youth and Internet cultural reporter for NBC, News. Dot Com callen thanks for being with us as well. Glad to, be here. Cowen who is the average tiktok user? The average tick tock user really is is a dynamic question because there is a huge range of different people who are using the APP but I'd say the most common person you're gonNA find is someone who is either at the tail end of high school or College who is definitely a solidly in generation the Gen Z. and he was using me APP mostly for fun to do dance challenges trends an engaged with communities that serve to their world. Graham. All of that sounds pretty basic I mean it doesn't sound like there's anything to be concerned about so far what type of data does tiktok collect from its users Graham? We'll TIKTOK is like a lot of social media companies these days It's using an AI driven or machine learning driven algorithm to figure out which content to to individual users. So to get this accomplished, they pay attention to obviously whatever you post that also you know what posts on your feed you look at how long you look at them where your device location is They also tried to track individual users like many apps do by looking at things like screen size and operating system and of course, they have a fair amount of information about your social graph, your your connections to friends and other people that you follow. And so what were some of the concerns around the data collection that way Graham given that it feels like there's a lot of, as you mentioned, other social media platforms and advertisers and the like that are tracking everything that we do already. Why? Why is Tiktok being highlighted here and banned in some of the institutions that we mentioned at the top Well, the basic reason is that tick tock is owned by a Chinese company named Bite Dance and they're a fairly new social media company. They had a breakout a few years ago in China with an APP called junior Tokyo that that is a you know an algorithm, IQ news feed and this is China's first big breakout internationally in terms of social media APPS and really getting take-up in in many different countries around the world not just the United States. So there's A concern that data collected by Tick Tock could end up in the hands of the Chinese company or the Chinese government and wild tick. Tock says that it stores all US user data in the US or in Singapore we don't really have a good way as a society right now to check that type of thing and to make sure that companies commit you when they commit to you know storing data and the Safeway making sure that they're actually doing that. Doesn't sound like we have a lot of that in the United States either though Graham. I mean, we have constant security breaches left and right Right. Well, the United States doesn't have a central data governance or data security or privacy Regulatory System the most prominent example of one globally as Europe, which has the general data protection regulation called the GDP are, and that governs things like when an apper services going to collect your personal information they have to gain certain types of consent and follow certain types of rules and there's also kind of limits the. Idea that if you collect data for a certain reason that you got consent for you shouldn't be able to use it for other reasons and that type of governance is just not that prominent in the US partially because the big US social media companies are not especially keen to have their practices heavily regulated they. They find GDP are in Europe to be burdensome and You know get in the way of making money. Kalland back in June president trump organized a rally in Tulsa Oklahoma and rumor has it that tiktok users promoted buying tickets for the event and didn't show up so that the event would be empty. What do we know about how that rubbed of the administration? So, what we know is it seemed to sort of frustrate the administration. Now, there's no evidence that the Tiktok users and K pop stands who are fans of Korean pop music that they had any impact on turnout. We are going through a global pandemic. There are a lot of factors going on right now. So it is really hard to know sort of what that impact was. But what we do know is it likely inflated expectations for turnout. The administration was planning to have a second rally after the main rally in Tulsa. which they then had to cancel, and so we think that it really messed with them. It was a it was a real genuine troll on the part of these tic TAC users against the president, and it really seemed to rub him the wrong way and there are lots of Tiktok users young first time voters who are telling me that when trump said, he wanted to ban this APP that was a retaliation for what they did the stunt they pulled the prank they pulled in Tulsa most what they think is happening. That's what they think is happening why there is no evidence that that's the president's line of thinking but that's what these eighteen to twenty two year olds are telling me that that's their beliefs. Cowan, we talked about The you know whether or not talk users actually had any effect on the trump rally in Tulsa back in June but more more directly here wondering if you're seeing any more political movement on the APP, whether it's a pro trump or pro biden or anti-trump anti, Biden has it started to move away from dance and song and move towards more political leaning so far. It can do both things at once actually. So there are still the dance trends. There are massive accounts that are just enjoying music on the APP but we see a lot of politics on Tiktok now maybe more than ever some young people are telling me they feel that because their home in quarantine and because politics ramping up nationally as we get closer to this election that they're seeing more and more politics in their feet, and what we're seeing is a not so much pro by content, but a lot of anti-trump content and I WANNA be clear. There is Republican Todd Democrat tiktok liberal Tick Tock conservative Tiktok. But what it appears to be is a lot of generation. Z.. Has a anti-trump sentiment and that does not mean they heavy pro biden sentiment. But things that we see our young people say, Hey, on this day, everyone go to president, trump's campaign store and put these products in your cart. But don't check out because allegedly that messes with their inventory or everyone on this day go to president trump's twitter account and report account, and let's see we can get a taken down. So we're still seeing these sort of organized movements sort of Troll, the president and a lot of discussion of politics but whether or not that is in in favor of vice, President Biden or in favor of president trump is sort of yet to be seen. Graham LE. Let's talk a little bit. But I mean, it sounds like tiktok users are for the most part having fun on the site sort of trying to do the things that Collina's talking about here but. On a more serious note, the trump administration has been trying to ban the APP. They're citing national security concerns, concerns over censorship by the Chinese government. Valid are any of those concerns really given what you know about China US politics Well I think it's you have to separate them out So the the concern about censorship I think is legitimate there was there was an example a little while ago where it looked like some of the censorship that they would do in China restricting conversations about things the Communist Party doesn't like discussed had bled over into the international product Now, Tiktok said that they were addressing that wasn't intended again, we don't really. Have a good way in the United States to check up on that and to kind of make sure that speech isn't being censored one way or the other the national security issue I think requires a lot more imagination Now, you know as was mentioned, the the military has has told service members to not use the APP and I think that makes a good amount a sense you know if if you're concerned about an APP Having links to a potential adversary There's all sorts of possibilities of ways that it could be exploited even just using location data of of service members or people who work in sensitive facilities. But if you don't work in sensitive facilities, if you're just sort of going around and and and doing the fun things and engaging in some of the political discourse that Cowan was mentioning you know there's not. A real big national security issue there a I will say that some people think that collecting the full aggregate totality of US Tiktok users could be used later in a analysis to try to do something, but it's really imaginative at this point whereas I think the censorship concerns a real and could be checked on and data privacy concerns are real but should be able to be checked on as well. What about the fact that we we just heard from Ian Bremmer, the president of the Eurasia Group in the previous segment talking about how the United States is viewed internationally in terms of our response to the corona virus. But I did ask in also about his thoughts on what this Tiktok dust up between president trump and China what seemed to Be Rooted in and he said, you know this is also part of trump's sort of relationship with how he views China and Chinese technology he's gone after while way he's gone you know talked a lot about five G. technologies. So do you see that I mean? Do you see that as a pattern in how the president views technologies specifically that's coming out of China. Yeah I think the you know the trump administration's been. Pursuing a campaign of you know escalating what could be a new type of Cold War approach to China and a lot of it is wrapped up in technology and and I think the focus on Tiktok really makes the most sense. If you consider it a distraction from two things I is a distraction from actual problems with China you know the the trump administration got this phase one trade deal which didn't really get to the deep issues of subsidy and market access and intellectual property protection. And, on the other hand, it's distracting from the fact that a lot of these security concerns should apply across many apps. Why just tick Tock you know you're talking about including American made apps like facebook and twitter. Yeah I mean the concerns are different when the parent company is in China but there are really unaccountable data collection methods going on across ad networks and data brokers are building profiles of Americans and people in other countries that can be purchased just with money and you know it's not only add companies that by this data governments can get it to. Callan, as we sort of touched on this earlier. But of course, we I, say this all the time we're heading into one of the most consequential presedential elections in my lifetime at least social media is constantly changing is tiktok going to be a thing and twenty twenty and November, or is it going to be eclipse with something else or it'll change the? Will it change the election? Calvin what are your thoughts on that? I don't see Tiktok going away anytime soon, as long as the president allows it to operate in the United States I think we're gonNA see more is eight organizing on the APP among young people and I think we're GONNA see. TIKTOK. As long as Microsoft buys it or another company comes in to allow it to operate in the US I think it's going to stick around for a long time. I mean the president did Callan has also asked that Microsoft give money to the Treasury. If it makes this sale, we is anybody else interested in buying tiktok or is it just Microsoft right now? I don't think anyone else has come out as far as I'm aware and said that they are interested in purchasing Tik. Tok I think Microsoft even just recently confirmed that they were interested in this conversation, but it appears a deal needs to be made by September fifteenth. So if someone's going to buy it, it has to happen soon. Well you heard it here I guess I callan Rosenblatt is a youth internet culture reporter for NBC News Dot Com and Graham Webster is the editor of the digit China Project at the Stanford? University Cyber Policy Center and he's also a fellow
Trump wants to ban Tik Tok
"Actually let's talk a little bit about Tick Tock today I performed this morning. An Act of rebellion. I downloaded installation talk on my iphone because who knows how much longer I'll be able to do it it's very confusing I don't know what's going on. Tick Tock, which is owned by the Chinese company Bite Dance Safest that committee. Or foreign investment in the United. States apparently is investigating I. Think they actually issued a ruling saying that like, wow away tick tock was a threat to the United States One of the ways tiktok became really big as by acquiring a couple years ago musically, which is really I think from what I see on. tiktok kind of the backbone of what Tick Tock is these days, which is lip synching or acting or dancing to an original track It's it's very entertaining. It's a it's probably the most engaging social network out there. But apparently, it's a threat to our way of life. On Friday the president on Air Force One. said that he was about to ban it as soon as yesterday. From the United States I'm not sure under what law safest can do it I think. But I don't know if the president can by executive order banning application. then for the last week Microsoft Been. Negotiating to buy the American rights to talk to kind of create a tick tick Tock America that would be separate from the Chinese bite. Dance. TIKTOK. But then the president says I'M GONNA ban it but I don't want anybody to buy it. So, micro-. Microsoft said. Threw their hands off and said figure it out and there. They didn't end the conversation with bite dance. Apparently, they were fairly close but they're not forwarding it until they find out what happens I'm GonNa make a prediction. Nothing is going to happen except now people are going to download and use TIKTOK. Brianna is tick tock a threat to national security. It's not a unique threat to national security. We need to have a conversation about the kinds of information social media APPS are able to download from our phones. We all remember the scandals of facebook on android downloading your tire phone list gang everyone you've ever called. We need to have a conversation about that, but there's there's really no evidence that what Tiktok is pulling is any greater than what you know facebook instagram these other social media sites are. Pulling so far. So we need a wider discussion about that. How's it just want to say I wish I could tell you this was just trump in the Republicans that would make me very happy. My heart broke today to see Chuck Schumer on the Sunday morning shows advocating the same thing tech talk. So you know it's it is we need to have a conversation about national security and the amount of information were giving up but it's I think. To just focus on TIKTOK. Sign of. Phobia. Or Zena Phobia Paris, you seem like a Tiktok user. I that's only because you're younger than. I. Did recently re downloaded when this whole. Wanted to make sure that I had it. I'm sure is a common response. I agree with everything the Brown said in the sense that I don't know I've been particularly disturbed by. The reactions to take talks, data collection both from the left and right and just. Experts in the tech field generally over the past couple of months because it is definitely coming from a place of seeing phobia. I mean, we have so many different. American. Made APPS that. Do many of the same things I mean one thing that I've seen noted quite often as to talk has the ability to see what you've. You know copied near Clipboard when guests so do most of the apps you have on your phone. Is Operatives. It's not a tiktok specific problem. This came up because of Iowa's fourteen, which is in public Beta now so people are suddenly using it and dozens of applications. I. Think must be a library that they all subscribe to infect somebody a couple of weeks ago. Somebody told me that it was. Ad Library I use of what a clearly noninvasive program from panic software Call Code editor, which lets me log into my Server. with SSh and and edit files and things like that and it was. I got the same thing that you get on Iowa's fourteen O, coders looking clipboard every time I typed to character. Now I don't think coded only panic software famous for an FTP program and this H. Program is at spying on me obviously, they're not. they're using the same code library. So it's a, it's a, it's a bug. That's what Lincoln Microsoft's linked in said as well. So. I think it's also just one of those things where if you're building an APP especially in. The Tom I. Don't know there was a time when absence of for being built were there wasn't this conversation about security and privacy. Why would map designers not take the position of? Yeah. All the things maybe we'll need that information talk said quite credibly. We're just looking to see if you put a url on your clipboard so we can pasted in. That seems credible I. Don't know if you need to do it every single time I type of character that seems like more that book I can tell you firsthand from developing an Iowa it's often easiest just to get it submitted to the APP store to take a bunch of permissions and It's just it's like you're trying to debugging in. Store, to accept it is just quirky. I can't tell you how many times I in other APP developers have. Just it's a very, very quirky system. So I, think this is just in Beta. I think it's really important to point out as far as the impetus for this I personally do not think it's a coincidence that tiktok was widely credited for disrupting trump's Tulsa rally a couple of weeks ago and Sarah Cooper is so famous for she's making five star she's she's amazing and those videos are brutal to trump and I I don't. That's a coincidence. She does trump limps licks lip sync. And I was talking to a friend said you know is the trump on TV I can't understand what he's saying but then I watched Cooper and that makes sense Sarah ads expressions and Gestures and all kinds of makes sense all of us and so I don't think the president should be so quick to to not like Sarah purchase he's adding context Might have something to do with it certainly in his mind because we know. You know. I don't know what he's going to do to Cape Pop stands because they were the other the other group that apparently figured out that you could register took on trump's team has got to be wise enough to know you can't take on the capons stands. Being. The capon stands the United States would crumble. Yes. That would be it would be over right. You just can't win against the K pop stands So. They were both advocating people sign up for the Tulsa Rally and not not show and Honestly the fault lies with Brad Par Scout trump's former campaign manager and his campaign team for believing all those registrations and building a giant outdoor stage. Giant parking lot so that the millions of people who are going to be coming because they all registered would have somewhere to be, and then I loved. Well, I shouldn't say that that sounds partisan was interesting to see the one person with the baby stroller in that giant area and the rest of the arena half full or third full So I could see why he might be a little angry about that. Is there. No, Matt. And I'm not putting you in the position of speaking for the government I want to say that in fact, we should have said that. That Nazi for the. Federal government but you also having worked Akiko Google you understand how you know a little bit about how this stuff works the the there's not any proof that while way for instance, has ever done anything. Particularly Evil they've done some commercial espionage apparently, but nothing could particularly evil but there's the potential if they run the entire five G. Network that at some point, they could inject malicious software to the network or shut it down. Is What could Even even sounds stupid asking it. What could take time do? It's the forbidden APP. If you think about it if you don't have it on your phone, it could disappear at any time. No I think it's it's less about that although you do see companies like Amazon saying, Hey, on your work phone or work device please don't install. And they did it. Because they realize Oh we do business with these guys. Let's not this them off but wells Fargo did that I think the Department of Defense I don't know about you sds, but it's reasonable if you've got a company phone. Probably shouldn't have facebook or instagram on it either you right? Yeah. I keep my twitter and all that stuff very far away from work phone. It's my it's my personal account, but you know it's I can understand why people want to have just a a sense of okay. Let's be careful. Let's see what's going on and then You know just making sure that you can depend on the. Tools all the way down reflections on trusting trust. You can put things into a compiler, which then you can remove it from the source code and turns out that thing can stay in the compiler for years and years and years. So you know you don't WanNa be load bearing on any particular technology that you can't quite vouch for his guesses what people are thinking, what would be the legal? How could a president ban an APP in the United States I was thinking about this in the one thing the United States government is very effective at is We we we went after Isis in I sell at a very effective way instead of this Ip address to a recruitment site you can't access it. So my my guess would be the executive order would basically grafter the ISP's and say you can't go to this particular ISP but think about that I know of VPN products is sponsor show sponsored mind and to know how few seconds would take the average teenager together VPN account to just keep their tiktok going. Yesterday I downloaded the tiktok cap the first video that came up credit account 'cause I forgot my previous password was a if Tiktok it's banned. Here's how to get around it. You don't Vpn you can go into the settings, your phone, change your country of origin to Canada and then You're great. Exactly I mean it's not enforceable basically So I mean one thing Leo I think. Matt and I would probably agree that we do need to. I don't know if it's more oversight from the point of sale like on the APP store or Google play I I don't know if it's kind of an External Code audit policy for these kinds of APPs on their own by countries I. Think we agree we we need more oversight and we need to make sure all of these are not stealing data from people and just to get people very brief history lesson you know Edward Snowden had some very serious allegations about our own spying agencies using. Facebook to gather intelligence on people all around the world there's evidence for that. There's no hard evidence at this point the Tiktok is doing any of this. So if we're serious about doing this, the answer isn't to further balkanize the United States from the rest of the world the answers to form coalitions with other countries say look if you're going to operate here in, you know if you're gonNA have the software operating in our country here, the rule you have to follow you can't just arbitrarily download people's Phone books, there's going to be You know civil fights. That's clearly the way to go is got to be bigger than just tiktok. I'm just looking at Tick Tock on my iphone. It has access to my photos because I gave it access to my photo so I could put a profile picture on there. it gives me notifications I could turn that off. That's that's a push though that's not a poll. Background APP refresh means it can run in the background and cellular data doesn't ask for. location data doesn't ask for I mean facebook asks for ten times more. That's why I don't have it on my phone. I. mean the worst thing Tiktok does is waste millions of hours a productivity, and maybe that's a recent ban I don't know. But I, just I don't understand how it could be used. If it's not getting location permissions, how could it be used maliciously and I think it is getting location position. I know that I've know anecdotally at least from a couple of friends whenever they let's say go to Connecticut to visit family or something they will suddenly get Connecticut. Themed Tiktok content or something similar. Okay. that could just be from. Connection you can get that from the IP address so they could get a Geo location through IP address without asking APP without telling apple that they're doing that that would make sense. Okay. So they're getting them. Every cannon probably, I hate to say it probably does do that.
TikTok: 'We don't give user data to China'
Bad debts top $100 billion at nation's biggest banks
"Movement calling for racial justice. Potential cost of bad loans in the wake of the Corona virus for the nation's biggest banks, has reached 12 figures. The nation's five largest lenders, Bank of America, Citigroup, JPMorgan Chase, She was Bancorp in Wells Fargo said the financial stress Caused by the pandemic could cause Morrow's to default. This is town all that calm. A federal appeals court has temporarily halted a judge's order that the Dakota access pipeline the shutdown in three weeks. The Bismarck Tribune reports, the U. S Circuit Court of Appeals for the District of Columbia Circuit issued an administrative stay of the judge's order. The appeals court added, However, it quote should not be construed in any way is a ruling on the merits of the case. The state will remain in place until the appeals court rules on whether the developer energy transfer can keep oil flowing. While the court decides the Texas based companies appeal of the shutdown order correspondent Jeremy House City Council of Minneapolis approved a resolution Friday officially declaring racism a public health emergency. Resolution comes nearly two months after George Florida Black man died after White Minneapolis police officer dealt in his neck where Jacob Fry said quote systematic racism is among the greatest long term threats to our city. For these stories, a townhall dot com Patrick Falls
Wells Fargo loses $2.4 billion in 2Q, first loss since 2008
"Banks out with earnings today. The big news Wells Fargo losing nearly 2.5 building of the second quarter, its biggest quarterly laws since the financial crisis in
Wells Fargo plans $10 billion in cuts, posts first quarterly loss since 2008
"Of big bank earnings reports were his dire is investors had feared, except maybe for Wells Fargo's JP Morgan Chase saw a smaller drop in profits last quarter, a little more than half and set aside 10.5 $1,000,000,000 to couple potential bad loans. Citigroup saw large drop in profits to and set aside billions. But Wells Fargo Posted its first quarterly loss since 2008. Because of those set asides and its slash dividends it shares are falling more than 5.5%. The bank CEO says cost cutting is coming. The bank will eventually cut $10 billion on Wall
Consumer Prices Jump 0.6% in June, Wells Fargo Reports First Quarterly Loss Since 2008
"Consumer prices taking higher in the month of June after three straight monthly decline. His business is reopened. But the underlying trends suggest inflation would remain subdued and allow the Fed to keep injecting money into the economy. According to the Labor Department. The consumer price index Did jump 0.6% last month after a dip of 0.1% in May looks like over the past year, the consumer price index is running at about 0.6%. Economist had expected AH slightly lower rate of inflation in the last month or so. The banks, some of them taking a hit today shares a Wells Fargo moving lower after the banks willing to a wider than expected second quarter loss of Wells Fargo CEO says the company needs to cut more than $10 billion of expenses After Wells are reported its worst of first quarter will worst quarterly performance since 2008. Since the financial
Wells Fargo loses $2.4 billion in 2Q, first loss since 2008
"Reports its first loss since 2008 as loan loss provision. Sword on the economic impact of the pandemic firm set aside a record 9.5 $1,000,000,000 for credit losses. That was $4 billion more than what analysts were expecting from. Wells Fargo
Wells Fargo loses $2.4 billion in 2Q, first loss since 2008
"Shares of Wells Fargo down about 3% in pre market trade, the banker pointing its first quarterly loss since 2008.
Second-quarter results to reveal dire state of top US banks
"Hit US banks especially hard. We've got earnings coming up, so we'll get another snapshot of how the banks are faring firm or let's bring in military intelligence analyst Allison Williams. So Alice again seems like we just got through bank earnings. And here we are again. Upcoming banks are faring here in this new World Order were in well, I think it's going to be Tough quarter largely driven by provision. Keep in mind versus past cycles. We have a much more pro cyclical affect this time and what that means it's just more up front. No more reserves up front and then sort of releasing on the back end. But I think two key things this quarter one every quarter. We talk about the earnings and we discussed the fact that it's all about the forward. Look. The earnings is a little bit different because after the stress test and the third talking about capping dividends, based on recent income to find a sort of the average of the past 4/4 this quarter is going to be an end. But not just to this quarter. But for the next few quarters, a CZ long Restriction remains in place. So this will give us sort of. Ah look, and the one bank that we'll get the most news about That around is is Wells Fargo. They've already sort of guided the fact that they're going to have Tio most likely cut their dividend. The second thing this quarter will be No. How are things tracking as a lot of these deferrals have sort of come up to there? You know, I guess first roll forward if you will. So you know, immediately. We had all these liberals put in place the 90 day mark. We will know sort of how things shook out as that sort of 90 day. Limite came up on DH shouldn't say limit sort of. I guess it's just a marker because consumers can ask for more time. But the question is, Are they going to ask for more time? Well, they start paying what's gonna happen. That's sort of the pivot point and that will give us an eye into credit so super great points and I guess, Christian saving of CEO of Deutsche Bank said to Bloomberg this week. That he thinks that the second quarter will be the top and loan loss provision. Do you agree with that? So it could be? Of course, it's all going to depend on you know how things take shape from here, Right where Sort of. You know, if you looked at some of the different scenarios and depending on the shape that you see from here, things can just pretty dramatically. But, you know, let's say that we are looking at their most optimistic scenario and again, I would remind you about the counting right to the provisions will be the highest in the last quarter in this quarter. That doesn't mean we've even started to see the actual charge off yet, But we will see bags sort of provisioning for you know, the very negative environment that we have now it wasn't sort of factored into the reserves at The first quarter, but obviously since on the economic picture has gotten worse. So after these 2/4 you know, we should be fairly well provisioned for the best case economic scenario, and then you know, obviously it's going to depend on what happens from here. So, Allison, you know you talk about those You know the test about whether these companies can keep or have cut their dividend. Is that pride maybe some negative incentive for them to kind of goose their GPS numbers here for the next couple quarters so that they can continue to pay dividends. Or is that not a risk that investors are really worried about? From a theoretical standpoint? I think one could make that argument. But I would say that if you look at, you know, you know, First of all, I think it's the final decision on dividends aside from Wells, which had a sort of a unique case of a higher And Pierre payout for across the U. S banks and also earnings that were hit much harder than there are other bags. I think they're in a unique spot, but the other banks, you know, the dividend passed already give them a fair amount of room and so even if you sort of are very harsh In your earnings outlook. They should be fine. And I think if things did get, you know, you get dramatically worse you could be dealing with, you know, regulatory and political pressure ahead. The key thing that came out with a stress test is basically You're the Fed, making Everybody resubmit that plans and what that does mechanically is. It doesn't allow the bags to do like a big share repurchase, which I don't think anyone would anyway. But it sort of precludes bank from taking any measures, and the Fed basically left their options wide open to come in and require Into basically increased capital requirements or do other things. So I don't think that the Fed has sort of set this restriction, but it's not gonna be the be all and end all. But I wonder how that feeds into the compound sort of expense ratios because some out there like Sheila Bair used to run the FDA, C says, like and actually indenture. Alot, too, is that it shouldn't just stop At buybacks and dividends that it should also be in comp that if you know we're in a really bad time, globally and financially, then you have to have a limit on the kind of conflict in payout, which will tie also into expense ratios. What do you hear about that question? You know, the one thing that I would point out is, you know again, the big difference this cycle vs last cycle. Last cycle, the banks were over leveraged. They were sort of part of the problem, so I think there was obviously a lot of scrutiny around the compensation. This cycle, the back part of the solution. They have very healthy capital levels. The worry is just that, you know we're in this unprecedented downturn and do we need the banks to sort of keep their capital to be ableto lend to the economy, So that's a very different situation. And if you go back to Sort of as I was discussing before banks get into a situation where they have to start limiting payouts. There are some compensation element of that. Um, but I think you know to the extent that the compensation argument I understand some people maybe raising it, but I don't think that's sort of at the heart of the issue as it is sort of in the last crisis. On the overall expend standpoint, right? The banks are trying to do everything they can to help their employees on a broad base. Is there they to varying degrees that that they're not going to lay off people? You know, they tried to give incentives Tio Branch type employees at retail type employees. So that's obviously not the compensation that you're alluding to. But I'm just, you know, sort of framing the bigger picture. I think that at the end of the day, the banks are gonna be interested in doing what's right for the long term, and I think, to the extent that we sort of discussed earlier some of the really negative bearers scenarios. I think thank you know, are going to want to keep paying out. Their shareholders will fight to pay their dividends, but they're not going to be and they're going to keep track of what's happening in the environment and respond accordingly as well. Also Williams Bloomberg intelligence, senior bank's analyst, joining us Thanks so much. I'm like joined at the
Wells Fargo tells workers to delete TikTok as security, privacy concerns grow
"Wells Fargo is now asking its employees to remove the tick tock app from their work phones because of security concerns. The bank says it's ordering the move due to concerns about TIC Tac's privacy and security controls and practices. Tic TAC is owned by the Chinese company Bite Dance, and the White House has expressed concern about privacy and security issues related to it. Yesterday, Amazon sent out an email telling its employees to delete the APP. But then said later that message had been in error. Tic TAC has repeatedly denied allegations that poses a threat to U. S. National Security.
Presidents Cup delayed until 2022 at Charlotte's Quail Hollow; Wells Fargo Championship to return in 2021
"To 2 covert 19 pandemic concerns. This means that the president's Cup at Quail Hollow Club in Charlotte, North Carolina, will be moved to 2022 meaning they'll still hold the Wells Fargo Championship next year. And thus TPC Potomac will host the Wells Fargo in 2022 instead of next year as originally planned. NFL USATODAY reports that the Washington Redskins original Americans Foundation started
Fed Stress Test Finds U.S. Banks Healthy Enough to Withstand the Coronavirus Crisis
"Fed reserve stress tests on banks so this is what is the stress test is basically analysis conducted our hypothetical circumstances showing what would happen to a bank under economic stress deep recession financial market crisis pandemic for example most of banks did really well by the way this is done with wood for banks with fifty billion or more in assets in the required to do this every year Wells Fargo though seems like it's going to be the bank that may have dividend payments at risk if of the perfect storm came along and that's got investors a little dicey the speed to keep in mind we've been dicey for a week now amidst higher code nineteen cases so that's what's going on Doug Jones down two percent as to be down two percent to keep in mind again two percent on the S. and P. is fifty six point two percent on the Dow is five hundred sixty nine points so it's still two percent just sounds are clear on the Dow nasdaq down one point seven percent at ninety eight thirty nine so it's going to be one of those days
The Fed has capped bank dividends and suspended buybacks after stress tests
"For the first time in the ten years of stress, testing banks are required to resubmit their capital plans later this year to reflect the current environment by chair Randall. Quarrels notes in a statement that there is quote material uncertainty about the trajectory for the economic recovery in its impact on banking organizations, and not all governors agreed to let the banks continue payouts even if If, they're limited fed governor Lael brainard said in a separate statement that she does not support giving the green light for large banks to deplete capital which raises the risk they will need to tighten credit or rebuilt capital during the recovery coverage, informing this decision by the Fed was a covert sensitivity overlay for their traditional stress tests where the test of the bank's viability under three hypothetical recessions in subsequent recoveries, v-shaped, u-shaped and w shaped. The Fed notes that there are scenarios are not predictions of the likely path of the economy in aggregate, though the Fed said loan losses for the thirty four banks tested amounted to five hundred and sixty billion to seven hundred billion dollars aggregate capital. Ratios declined from twelve. Twelve percent in the fourth quarter of two thousand nineteen to between nine point five to seven point seven percent in the hypothetical downside, they did not break out the results of the cove analysis on individual banks, but in the after hours investors have been drawing their own conclusions with mixed results depending on the bank mixed performance depending on the Bank Melissa all right Leslie, thank you Leslie picture with the results of the stress has a lot to think about. There are a lot to think about in terms of how it affects the bank trade, but there's also this to think about. Take a listen to what David Ellison of the Hennessy funds said on the closing bell just a few moments ago. There really inserting themselves, and and basically acting like they want to act in a sense that these companies are effectively nationalized. and. We're seeing the effect of that today. in what they're saying, so they're worried about the the appear to be more worried about the economy than the market is. Again heard Powell last week. Say that he was worried now. It seems like we're hearing that again. And this is going to be an ongoing thing. The banks are going to be battling this for the next couple years. So they are effectively nationalized according to this bank investor, guide me. What does this all mean for the bank trade? Yeah. It's interesting. I mean I. Don't know if I'd go that far that the bank should be but I I respected the the opinion on that. Know what it means for the bank trade I don't think the value proposition of the reason you were getting wanted to belong J. P. Morgan was because of the dividend or their stock. Buy Back. I mean I. Don't think that's why you're long the stock, but I understand the headline. This is somewhat shocking, although probably not all that. Surprising quite frankly, I think a lot of people probably saw this coming I think the bigger headline was the reason I thought. The market rally in the first place was a relaxation of the Volcker rule to a certain extent. I think that's why banks had the big run. Now you have to wonder if the timing was somewhat coincidental. I still would submit the following. Pretty steadfast on this you're looking for opportunities to by name like J. P. Morgan for that now second potential run up to one fifteen, and we've done the math for you. I mean one fifteen for J. P. Morgan is putting a one point eight multiple on sixty two dollars tangible book, and it makes a lot of sense. Go back and look where we traded up to a couple of weeks ago and that to me is where the market wants to go I. Don't think it's I. Don't think this is the reason to be bearish the broader market although you know I am. But I do think the headline is probably going to some people carrying. You've been a longtime investor in the bank specifically, certainly not for the dividends, certainly not for the share buybacks. Knew that they were gonNA suspend by back at least for this quarter. So how do you factor this into your investment thesis? So. I mean I guess it makes sense I that they say. Let's see how the year unfolds before we decide whether or not you're going to be allowed to to pay your dividend, or at what level you'll be allowed to pay your dividend, so that sort of makes sense to me i. think what is going to be more important I think is how bad are the provision for loan losses going to be in this quarter? And how bad are they going to be given that we are having difficulty reopening? How sustainable those losses to be going through the throughout the year, so I had thought that the first quarter and the second I'm sorry, the quarter ending in. June, and this next one I'm sorry. March marching, June would be the worst quarters of the year. Maybe there's another bad quarter here. It is interesting to me though that the Volcker rule did come out on the same day that I mean that's sort of like back to go go times. To? The stress tests. But I think the story hasn't really dramatically changed today we'll be. It'll be interesting when we see on Monday. Who is going to change their dividend? Would seem like Wells Fargo is maybe a likely candidate. For BANKAMERICA's city and JP Morgan. The big money centers I don't think they're moving much I. saw city up a little JP Morgan down a little and Bankamerica down. Little I don't think a whole lot has changed to me. It still comes down to how bad will the loss be? Yeah, Goldman after hours one of the biggest loser, if down two and a half percent, a wells Fargo's down one and. And a half percent.
"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.