35 Burst results for "wells fargo"
Wells Fargo Launches Passive Bitcoin Fund for Rich Clients
"Wells fargo has registered a new private bitcoin fund with us regulators. The fund is operated in partnership with the breakdown sponsor night gig as well as investments who've worked together on other funds such as i believe the morgan stanley bitcoin funds. According to a coin desk source the new wells fargo fund is passively managed earlier reports had suggested it would be an actively managed fund for wealthy clients on top of the wells fargo news j. p. morgan's passive bitcoin fund. Also a partnership with nine was also filed with the sec. Today so if you wanna know what people think of bitcoin just keep watching what they do not what they say next on the roof today. These scars of past crypto winters run deep according to a report from the wall street journal coin. B.'s has a pretty significant cash reserve at the end of june those reserves stood at four point three six billion dollars. That's up from one point. One billion at the end of last year quinn basis. Cfo lsu haas said we want to ensure that we maintain those cash reserves so can continue to invest and continue to grow our products and services in the event that we go into crypto winter. She also said that part of it could go towards acquisitions. I just want to point out that in a market that so many think is absolutely batty because it's disconnected from fundamentals. Queen base as a company is not only profitable but is keeping a large number of cash reserves on hand in the event of a rainy day. Something which basically no other companies do. So i don't know. Man maybe crypto has something figured out that other industries have forgotten last on the brief today. Brian quinn tens is stepping down from the cftc. Brian quinn tens is one of the most vocal advocates for crypto among the us regulatory ranks. The commissioner's term technically expired. Last april and he had previously planned to step down by october twenty twenty but ended up sticking around which he's legally allowed to do until the end of this year. He has been fierce about giving crypto a fair shake in policy discussions as well as advocating for the cftc's role in regulating crypto. According to the wall street journal he'll be gone by the end of the month and headed to the private sector where he intends to quote keep innovation particularly related to crypto currency and defy relevant to my career
US Hiring Surges In July, But The Variant Is The Wild Card
"Even as the economy shows signs of a surprisingly strong pandemic recovery there are fears of resurgent virus could send it back the delta variant is the wild card but the White House says the nation shouldn't worry much about its effects on the economy this is not March twenty twenty or even January twenty twenty one spokeswoman Jen Psaki says the country is in a much better place with vaccines there will not be lockdowns we are not turning back the clock Wells Fargo senior economist Sarah house says she doesn't expect any widespread restrictions that would badly hurt the economy but the delta spread may have some impact that might lead some people to to curbs on their outings and and spending and therefore potentially some from hiring Sager mag ani Washington
If You Don't Like The "Woke" Nonsense, Stop Using The "Woke" Banks
"Look we all complain. About the woke industrial complex the woke marxist that are running our schools that are running media and yes also running our banks. You see like the real estate market. It's red hot tyler. He just sold his home and he said charlie. I've never seen the market so unbelievable. So maybe you want to go buy a home. Maybe they're taking advantage of low interest rates with all the economic uncertainty underway. People need to invest in real stuff. So here's a rule of thumb. We hear our solution based show. So if you don't like the woke nonsense stop using the woke banks. It's that simple. No more wells fargo. No more j. p. morgan no more goldman sachs no more big bank culture instead. I have these two great friends and they do a great job. It's andrew and todd andrew del ray and todd avakian. They love the lord. They are christians. They are honest. They are straight shooters and they are a mission to make sure that you guys can refinance but be told the truth. Look when i took out mortgages for the properties that i have. It was one of the worst experiences i've ever been through. Yes some of the people. Were very nice. But i could tell you. The bank itself was just so bureaucratic and hard to work with my producer. Andrew is working right now with andrew and todd to fight against the woke banking culture. And he tells me that they're part counselors part financial counselors planners. And they're really helping and so here's the thing andrew and todd our mortgage bankers they're not brokers that means andrew and todd and their team can take care of your loan personally from start to finish. You'll likely actually talked to andrew and todd yourself to right now. Maybe you're walking. You're like i want to refinance the home. Or maybe i'm under the process stop it no more wells fargo their funding a billion dollars. The belove inc drives me
Biden's Senior Advisor Admits Latest Eviction Ban Is Unconstitutional
"Gene sperling is joe biden's senior adviser. Here's a senior adviser at admitting that extending the ban on evictions for people who won't pay rent is unconstitutional to date. The director and her team have been unable to find legal authority even for a more targeted eviction moratorium that would focus just on counties with higher rates of of kovic. This is a president who really understands the heartbreak of the fiction. He is the reason why he is pressing and pressing. Even when legal authority look slim is because he wants to make sure we have word. Every potential authority. Can you believe this. Jr here's the legal authority. Looks slim but he knows the heartbreak of addiction. Does he know the heartbreak of people losing their livelihood when they can't get rent when they're not receiving the rent payment. That's do what about the heartbreak of people who know that wells fargo needs the mortgage payment. They're not gonna they're not waving it away. I got to pay the bank. I gotta pay. What about that
"wells fargo" Discussed on Money Rehab with Nicole Lapin
"Knowing that you're eight hundred dollar wrench check is gonna clear no problem but because wells fargo had moved that money into a different account bom the customer would accidentally overdraft and have to pay a fee. And who would that fee to wells fargo. Of course this happened to tons of people. I'm not one to say. I told you so but if i was i would say again guys. Never opt into overdraft protection eight will by y'all in the ass if you can believe it. It gets worse. According to cnn wells fargo employees also submitted applications for more than five hundred sixty five thousand credit card accounts without their customer's knowledge or consent and roughly fourteen thousand of those accounts incurred more than four hundred thousand dollars in fees including annual fees interest charges and overdraft protection.
Wells Fargo Tells Customers It’s Shuttering All Personal Lines of Credit
The Energist | Micah Renfro on Oil and Gas Startups
"Welcome back to yesterday's podcasts. We've got about a mica. Mike renfro the right. Okay just make sure with is an energetic. The energised the z. Energised mike what do you guys do with you. Just so we do executive recruiting and consulting visory Been around since nineteen seventy nine I haven't been there since. Nineteen seventy nine but the firm was. The firm was founded by a couple engineers and a couple of geologists that drew their rotation to think it was like west africa and they were in their twenties. And i don't want to go to west africa on rotation. Now i can't imagine back in the seventies wanting to go g and So they decided to start The energised is technical. People recruiting technical people. then. We've stayed in energy throughout to my knowledge where the one of the longest standing if not the longest standing energy focused recruiting firms out there head hunting firms out there and so i started working there about eleven years ago. Maybe ten years ago something like that started in investment banking kind of got my teeth kicked in that for a few years rather wells fargo fargo tweet san francisco and new york so go energy investment banking. Yes so i was in the capital markets group. So i say we did. Like i did pretty much spreadsheets. And kind of converting senior bankers notes So i didn't didn't really have a whole lot inputting any other stuff
Do Your People Believe You Lead With Fairness
"For this week's episode. I wanna talk about the interview. I just had with ron carucci author of the new book to be honest. The book details four factors company should look at. When determining whether they're at risk for the types of headlines we've seen in recent years from companies like wells fargo and volkswagen. This is a true thoughtful thursday. Because i've been thinking about something. Ron said to me this interview all day. You'll be able to listen to him articulate all this much better than me and a couple of weeks when his injury publishes but i did ask him what individual leaders can do to ensure their words and their actions line up with each other and with high standards of ethical honest leadership. He said something individual leaders can do right away is think about and write down ten different scenarios that might fallen an or moral gray area. Then give the list of their people on their team and ask them what they believe. The leader would do in these scenarios. How would they react. What would the outcome be. But the other thing they need to ask people to do is time how long it took to settle on an answer for each question. Do the inherently know how their leader would respond or did it take a minute or two to feel confident in an answer. I i love that. He had to write these things down. Anyone listening right now. Who has heard even one or two episodes of the show knows. Lorenzo and i are huge fans of writing things down as part of these exercises. It's much harder to let yourself off the hook when your commitments are staring back at you from paper but the reason is stuck with me all day since our interview is because thinking about doing this exercise with people reporting to me made me a little uneasy. Now i'd like to think i'm an honest ethical person. I like to think my people would know in a millisecond. What i do ethically gray situation but even if i'm an absolute pillar of honesty and integrity if i've not been purposeful with my people on making sure they see examples of this all. The time is getting the benefit of team. Who believes in me like they. Should you see if you're a leader of people. The appearance of propriety is just as important as actual propriety. The appearance of fairness and ethics is just as important as actual fairness and ethics. Knowing that you do the right thing even if no one was looking is great but if your people aren't confident you do it. It doesn't matter so the next time you find yourself having to make a decision where leaned on personal values of fairness integrity or justice. Be vocal about your decision making process with people. Show them examples of why these things are important to you. You never know you'll need them to give you the benefit of the doubt in the future.
How to Get Business Credit, with Ty Crandall
"How did you get into credit in the first place. Well the first company ever owned was a mortgage company. And i own did back in two thousand six seven and i just thought i was a rockstar like wow. I'm just not true entrepreneur to be seven figures pretty quickly. Apparently is like you know pretty easy to do. When mortgages were spiking like the same as seeing with real estate now and then i was there and road that out until everything collapsed and at that point i was doing jumbo loans. My entire segment of that industry went away overnight and we went from producing a lot of money to producing no money and not having an ability to produce. We couldn't even place loans. The lenders weren't even accepting loans for months in what we were doing. And then we'll be on. So i kinda went through this process building successful business and then being there and watching it fail and i like a lot of business owner personally guaranteed credit lines. Credit cards. didn't think much about it but then the problem was was started to go late on some things for the business. Those in showed up on my personal credit report in a couple of things happen and i hadn't accounted for a thought well if the economy shifts i've had hundreds of thousands of dollars of revolving credit i've gone. All this money in the bank will what happened at that. Point was both things went when that stuff started. Hit my consumer poor all my credit card issuers. Lower my list. What i owed that crushed by credit scores and then at the same time of the banks that i didn't owed money to for the credit lines to the business came in literally removed all the money from all my bank accounts naaman all set so people. Listen i'm going to interject for a second. That is really scary. That's really scary. When you're in a position of saying. I have this credit limit. What could possibly go wrong. They shrunk your credit when they lowered your ceiling and then suck money out of your counts. That is terrifying. Sure going over much happens in the credit system that credit bureaus get alerts when thanks change and what people don't understand is that there's something called the small business financial exchange and in order to be part of the small business financial exchanges to give get metality so all the major banks all the major credit card. Issuers are part of it. And what happens. Is they openly exchange information with each other whether it is or is not on your credit report so if you fill out an application for a credit card or for loan at bank of america well most people don't realize is wells fargo chase. They all have that information eating medial acceptable when you do so this even can help them trigger alerts when things change so if you have five credit card companies and you go late on one whether reports are a dozen than the other ones no and immediately typically than lower your limits and since available credit is thirteen percent of your score thirty score. I mean just your score overnight can go from seven hundred fifty seven sixty down to five twenty like it did and then your ability to use that credit to be able to rebound goes away. That's very real. What happens when you go lay on any accounts which is one of the reasons you wanna keep accounts putting on your business credit reports not your consumer but the second part was scary too because when they remove all your bank not even money. That's their right. You have checks written against so all kinds of of adverse consequences happened. All these checks bounced utilities. Are getting shut off. Things happen as a result of that
Elizabeth Warren Spars With JPMorgan Chase Head Jamie Dimon on Overdraft Fees
"The nation's top bankers taking some serious heat today on capitol hill see. Jp morgan citi goldman wells. Fargo morgan stanley and bank of america. Kicking off two days of testimony before congress. And if you wanna taste of how things went down. Check out this exchange between senator elizabeth warren and j. p. morgan ceo. Jamie dimon mr diamond. How much did j. p. morgan collect an overdraft fees from their consumers in twenty twenty. Your i think your numbers are totally inaccurate but blessed temporary public. I also want to point out. We did not overdraft. Can you just answer my question. John anymore than over and how much in fact to jfk mortgage collect an overdraft fees from their customers in two thousand twenty the number. I don't remember in front of me. I actually have. Non exceed three billion dollars. We waived the fees for customers upon request if they were under stress because cove it. But you can fix that right now. Mr diamond will you commit right now to refund a half billion dollars you took from consumers during the pandemic. Not pretty
Why Tesla Stock Jumped on Monday
"Robin our here today. We're gonna be talking a little bit about tesla stock tests approach with their sensor suite. Plaid delivery timelines. We've got wells fargo. Picking up coverage of tesla stock. Some news on charging and batteries. Nice start to the week. Four tesla's stock today after a relatively quiet news weekend finishing up four point four percent to six hundred and six dollars four cents that compared to the nasdaq up. One point four percent tussle dead tail off a little bit towards the end of the though falling about one percent in the last half an hour well as luck would have it alanis tweeting about bitcoin and does in the last half an hour about eighteen minutes before market close. He tweeted quote spoke with north american. Bitcoin miners they committed to publish current and planned renewable usage and ask miners worldwide to do so potentially promising and quote couple minutes after that he switched over to doj saying quote. If you'd like to help develop those please submit ideas on get hub and read it and quote so inevitably you see that you see out. Great yuan taking the stock again talking about cryptocurrency. Someone already tag me on twitter suggesting this and if you're just casually looking at the stock yes absolutely looks that way but again it is not that simple if we pull up the minute by minute. Chart here tweeted again. Eighteen minutes before close dessel was at about six hundred ten dollars per share at that point in time it had already dropped from six hundred and fourteen before john even tweeted that if we flip over to the nasdaq you can hardly tell the difference there in the last half an hour with how those look the nasdaq trails off there as well and continued to fall in the last eighteen minutes. Just like tesla did in fact tests actually dropped more in the ten minutes before ilan's tweet actually more than two times as much of a drop their as it did ten minutes after tweeden about cryptocurrency even though the nasdaq performed worse in that second block of ten minutes after alonzo tweet so just like before. Yes tempting to throw that in as the narrative you see the stock falling right when you on tweets. But it's just not that simple and this instance is definitely not evidence of that being the case
McIlroy Ends 18 Months Without Winning at Quail Hollow
"Rory McElroy has continued his love affair with the quail hollow course surviving a final hole bogey to win at the fame shot up lay out for the third time McElroy who celebrated his thirty second birthday at the start of the week finished at ten under after a closing sixty eight to claim the Wells Fargo championship he finished just one ahead of a charging Abraham ancer the Mexican leaping into second place after a bogey free final round sixty six it was Michael Royce nineteenth win on the PGA tour snapped in eighteen month winless streak and secured his first ever three peat at a tour event on Graham like us
The Mindset of the Unstoppable Leader With TJ Everheart
"My guests day is tj ever hurt. Tj's as the owner of tj ever consulting inc an operations and performance management consulting firm. She has over twenty years of operations. Management experience gained from wells. Fargo t mobile an f. I. s. her consulting firm helps organizations identify the human factors preventing them from meeting their operational performance goals and then offer the necessary training to correct the issues. She's also the co owner of capture training solutions a workplace training and development company. Thanks so much for joining me today. Tj diane thank you so much for having me excited. Thank you so much but they can about me. I'll i am super excited to have you here. We are going to be talking about. Being an unstoppable leader. Which i think is such a great topic. Oh we're going to dive right in. I wanna know what are some of the key. Attributes of an unstoppable leader. You know there. There are several But i always start with being introspective and the leader has to. I understand recognized their strengths and their weaknesses. You now a lotta times. The leader has a great ability to identify those things and others. You know those things that are the most about other people would. They aren't doing what the team isn't doing. So whenever i am Coaching and developing leaders. I always start with the leader. So the leader themselves has to first be able to identify what they're good at and what they're not good at and then they have to be able to take accountability within themselves. To fix those things and let others they. The leader has to be able to be cultural also and they must know that you know as great as they are right. They some stuff that they're missing. Believe it has to be able to say you know. I am cultural. I recognize that In order for me to be the best in my team. I can't operate in my weaknesses and expect them to operate in their strengths.
Fed tightens bank capital requirements
"Change for banks. I'm nova safa with the marketplace minute. Since last april the federal reserve has allowed banks to keep a little less in reserves than they would otherwise have to the idea was to encourage lending and the purchases of government bonds at a time when the economy needed the boost now the federal reserve says the rule exemption it had implemented to allow for. This will end. Starting in april banks will be back to the old rules. Fed officials savings have plenty of capital. And they're not worried but analysts say there's a risk of disruptions in the bond market. The news sent bank stocks tumbling today. Shares of j. P. morgan chase bank of america wells fargo and citigroup where each down several percent. Meanwhile
Bank Stock Rally Shows Few Signs of Faltering
"Other moving higher, Nathan and considering bond yields arising as well. That's not exactly a surprise. You know, it's all about the Federal Reserve's decision to uphold their near zero interest rate policy and to keep buying bonds at their latest meeting, which concluded yesterday. You know you got Bank of America Shares up about 2% in early trading city Group up 1.5% JP Morgan Chase up 2% and Wells Fargo higher by more than 1% alphabet. Though Dan one half percent, its main unit, Google will have to face a lawsuit that accuses the company of illegally collecting data from users of its chrome browser after they opted out. US judge denied Google's initial request to throw out the case. We just got that news just this
Tech Stocks Sink in Early Trading as Bond Yields Climb Again
"Let's get over to Dave Wilson. Right now. He is in the studio with a look at stocks. Dave We're not seeing a lot of movement on the index is, but what do you see under the hood? Well, I mean, you've kind of got big tack on one side and big banks on the other. That's how things are kind of lining up in early trading. So you look at what's lower in the S and P 500. You see technology Chris Apple Microsoft fitting in their communications services, Google's owner, alphabet as well as Facebook, and then that consumer discretionary category where you find Amazon dot com and Tesla's so you know, that's one side of the coin. The other side's what's going on with the banks. You know, we're seeing Bond yields move up and bank stocks kind of going along for the ride, and we should point out yesterday. KBW Bank Index, which tracks 24, the largest U. S. Lenders, broke a record that had stood since February. 2007. So it's like the banks are finally getting out from under the shadow of the financial crisis. If you look at their share prices, and by the way that KBW index is up 2% today, and we're seeing gains of on that magnitude from JP Morgan Bank of America, Citigroup, Wells Fargo and Maura's, So you know, it looks like You know, we kind of got, you know, the kind of classic on the one hand on the other going on in early trading. And what you get out of that, in terms of the broader market is not a whole lot of direction mean some weakness, But you know, the S and P 500 actually coming off its early lows at the moment. Have to have a guess. What we've seen today is another example of that trade We've seen recently. You know what bond prices trade off interest rates push higher, and that brings the NASDAQ down with it. We're seeing that again today. Oh, yeah. I mean, that's you know, sort of how things are lining up at the moment on them beyond that, though, I mean, you look at utilities in real estate, you talk about the areas most sensitive to higher rates. They're actually up a bit. In early trading. You look at their S and P index is higher by three tents for percent. So you know that's kind of uninterested contrast and you know, they kind of puts them in the metal, arguably between big tank and big banks and big tech
Advancing AI In Finance With Agus Sudjianto
"Yes and so. We're so excited to have with us here today. Goose sudrianto who's executive vice president head of corporate model risk at wellsfargo high goose. And thank you so much for joining us today. Hello hello rondo. hello kathy. We'd like to start by having you introduce yourself to our listeners. And tell them a little bit about your background and your current role at wells fargo. Thank you for the question to the background to be windy. we bindi and Different road that. I voted for I came from engineering background. So my My first slot proficiently alison engineer. I design Car engine for ford motor company. So i lied. Engine design team in at four vessels long time ago and i switched the banking after that so various different role in banking Both in the us and the uk. And now i'm with wells. Fargo the last seven plus years with wells fargo as the head of corporate model race What happened in banking is Because it's a highly regulated entity every bang need to have program to manage to manage the model so so we We use a lot of model though and making decision financial and non financial. So it that discipline of managing motorist is very important so every every bang has designated as chief model race. That's What i am doing today. So basically overseeing all the model that this in option prior do that. I was a doctor afa analytics for loyd's In uk and before our sweeping hamanaka s had wanted that so a little bit Wrote from engineering background work engineer. End up with repent. That's a really interesting back when you know starting with the engine design automotive but the funny thing is i could see the connection here. Because you're going from trying to build reliable systems that can function every day. You know whether you're in a car you don't want that to fail unreliable to reliable models that you have to depend on as a banking institution. Also you can't have things failing and unreliable way so you can connect those dots together and also you got it. S i very keen about model failure model not wrong understanding the failure modes how to have model. That really safe you know so. It's the same you know like and that's a real Basically product with with engine It's the best thing. It's a a more of this when you're dealing with model and software is Somehow you need imagination.
Your Daily Stock Market Briefing
"Futures down, 49 point, says two B's drop 11 NASDAQ futures declined by 47 US. A 10 Year old at 1.44% Gold is up five and Shanghai felt 1.2% overnight. Well, European markets are in the green this morning. Backing US on the economic front of two o'clock. Feds Daily speaks to the Economic Club of New York after the bell last night soon, Video reported. Shares are up 9% pre market and regarding earnings this morning target beat estimates. In other news, Roco files herself to a billion dollars in stock and wrapping things up. 80 T was cut to underweight at Barclays Down, Hank raised overrated Wells Fargo. And zoom video raised overweight over at Piper Live from the first to pick a new status combo
Some Washington, DC banks to reimburse overdraft fees for unemployment benefits after tech glitch
"At large. D. C Council member Elissa Silverman says several major banks have agreed to refund any overdraft fees caused by a D C government technology snafu that presented prevented 39,000 unemployment claimants from receiving their benefits payments last week. She says. Bank of America Capital one and Wells Fargo said the financial institutions will refund overdraft fees caused by the issue. The three banks represent about half of the consumer banking market in the
"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
"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.