Items Tagged with 'Wells Fargo fake accounts scandal'

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NY Fed president compares Wells Fargo fake account scandal to subprime mortgage crisis

Dudley: Like subprime crisis, compensation made bankers ignore consequences
The president of the Federal Reserve Bank of New York told the Banking Standards Board in London on Tuesday that he sees quite a few similarities between the Wells Fargo fake account scandal and the subprime mortgage crisis of the late 2000’s. "Compensation, once again, seems to be at the center of a scandal," NY Fed President William Dudley said in the speech.
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Maxine Waters accuses Wells Fargo execs of dodging fake account inquiries

Says execs questioned by Republicans, but won't sit for Democrats
Wells Fargo executives are dodging additional Congressional inquiries into the bank’s massive fake accounts scandal, Ranking Member of the House Committee on Financial Services Maxine Waters, D-Calif., said last week in a letter sent to Wells Fargo CEO Timothy Sloan. Click the headline for more on Waters' accusation and what Wells Fargo says about it.
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Wells Fargo's fake account scandal didn't dent 2016 mortgage business

Here's a full breakdown
Wells Fargo spent much of the latter part of 2016 cleaning up the mess from its massive fake accounts scandal and trying to repair the damage to its reputation, but the bank’s mortgage business certainly didn’t suffer last year. Here's a full breakdown of Wells Fargo's 2016 mortgage business, including how many 3% down mortgages the bank originated.
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Two more execs out at Wells Fargo as fake account fallout continues

Los Angeles Times reports on departure of two California regional presidents
A few weeks ago, Wells Fargo announced that it fired four senior managers in the fallout from the fake account scandal that led to a $185 million fine from the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the city and county of Los Angeles. And according to a new report from the Los Angeles Times, those four executives aren’t the only ones who recently left the megabank.
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J.D. Power: Sales practices threaten customer satisfaction in banking industry

But trust in financial institutions at record high after crisis
After the Wells Fargo fake accounts scandal, financial institutions are more at risk of losing the trust of their consumers. Although consumer confidence in banks remains at a record high, some are beginning to cite excessive sales practices as breeding mistrust in the system.
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Wells Fargo revokes 2016 bonuses for top execs; warns there could be more fake accounts

Discloses warning that more customers could be victims
Wells Fargo announced Wednesday that it plans to claw back the cash bonuses for eight of its top senior executives, including the bank’s new CEO, Tim Sloan, as the fallout from the bank’s fake account scandal continues. But as it turns out, Wells Fargo may be facing more fake account fallout, as the bank also warned investors Wednesday that there could be more victims of fake accounts than previously disclosed.
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Wells Fargo fires four senior managers over fake account scandal

Action taken due to ongoing internal investigation
Wells Fargo announced Tuesday that it fired four senior managers as the fallout continues from the fake account scandal that led to a $185 million fine from the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the city and county of Los Angeles.
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Wells Fargo unveils replacement for scandal-ridden pay plan

Product sales goals eliminated
In the aftermath of the fake account scandal that led to a $185 million fine for Wells Fargo, the bank pledged to change its employee compensation plan, but did not provide details on how exactly the new plan would be structured beyond eliminating sales goals. Now, Wells Fargo revealed how its new pay plan is going to work.
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New York unveils proposal to ban "bad actors" from working in financial services

Would empower NYDFS to boot individuals
The New York of Department of Financial Services could soon have the power to ban individuals from working in the financial services industry for “egregious conduct,” New York Gov. Andrew Cuomo announced Monday. In announcing the proposal, Cuomo cited the recent fake account scandal at Wells Fargo as the kind of action that could get a person banned from working in financial services under the new rule.
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Wells Fargo preparing new pay plan in wake of fake account scandal

Retail employee compensation no longer tied to sales
Last year, Wells Fargo said that it planned to change its employee compensation plan, de-emphasizing the sales goals that led to 5,000 of the bank’s former employees opened as many as 2 million credit card and bank accounts without authorization in order to get sales bonuses. When Wells Fargo made that announcement in September, the details on the changes were scarce, but a new report states that the bank is ready to roll out on its new comp plan, one without sales goals.
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