At what point does a bank lose its license to conduct operations as a bank?
34
This bank is a disgrace. Anyone who trusts them with a dime is a fool.
26
How is this bank even allowed to stay operational after its last scandal?
24
I think Wells Fargo got caught and other banks did not.
12
Wells Fargo has a long history of criminal behavior for which no one has ever been punished.
Thank goodness for my credit union!
Thank goodness for my credit union!
19
Anyone see the Board of Directors around here? And if you do see the Board get rid of them. I've given up on the idea even after $150-200 billion of bank fines/penalties/settlements since the Financial Crisis that the United States Justice Department will every indict a high-level banker. Enough. It's shameful.
12
Wells Fargo is one of the banks that runs the US. It even makes trump look good!
6
The people people who were shafted need to be given 8% compound interest on top of any premiums paid on this fraudulent insurance for every day they were denied their own money. Plus compensation for hurt feelings. The PPI scandal in the U.K. has been horrific, customers who were sold useless insurance have had a fight on their hands, but it has got easier since the Financial Ombusman stepped in and fined delinquent companies. Barclays has just put another £700m aside to pay restitution. It was daylight robbery, as is this.
7
Wells Fargo's repeated illegal and customer unfriendly practices is an ad to never, never do any banking at this corrupt institution. Aren't there regulations that prevent these kind of abuses? Fines don't seem to to be adequate punishment. Jail time for executives is what the financial industry needs, if only the federal government had the will.
15
So which Wells Fargo executive is going to jail? The answer is zero. But if a poor inner city black man smokes a joint or sells a 1/4 ounce of weed, he's going to jail.
The Justice Department should jail the entire Wells Fargo executive team and we will see these practices cease.
The Justice Department should jail the entire Wells Fargo executive team and we will see these practices cease.
20
Very simple, the mafia finally got hold of government and they do what they know best: Steal people blind. The goverment part fo the mafia doesn't enforce the laws against fraud and that's the end of the story. Any questions?
8
Perhaps if Wells Fargo is run out the financial industry they can spearhead the hallowed free market solutions Republicans have in mind for health care. They seem to have just the right stench of winning amorality favored by Our Dear Leader.
5
Time for Wells Fargo to bite the dust.
7
The bankers must have a 'Trump Card' they can play whenever things get too hot. Hasn't anyone noticed that not one of them has ever been found guilty? Heck, none have ever been indicted. HSBC aided drug dealers and only had to pay a monetary fine.
The late George Carlin nailed it when he said this nonsense would stop once we send the bankers to jail.
The late George Carlin nailed it when he said this nonsense would stop once we send the bankers to jail.
7
maybe the regulars should just cancel their charter to operate. This is on ebank that is too big to FLAIL around unregulated.
3
Companies like Wells Fargo lobby for their First Amendment rights as if they were real people. But when real people steal cars they go to jail. Wellsie, you can't have it both ways. Senior management needs to go to jail for this. They need to be held accountable.
9
In addition to seeking punishment for the leaders and executives at Wells Fargo, why has not its banking charter been revoked. This bank clearly strikes me as a criminal enterprise. The political chant of "lock her up" seems most appropriate aimed at Wells Fargo!
8
When is this going to stop?
Can't they be put on some sort of "probation" until top management completes ethics training?
Can't they be put on some sort of "probation" until top management completes ethics training?
5
Banks?
How about shakedown artists?
How about shakedown artists?
2
Why does ANYONE uses Wells Fargo? Put them out of business.
7
Out and out criminal robbery and not a single Wells Fargo employee in the slammer. Sad.
6
As Don Corleone once said, you can steal much more with a law degree than a gun. (No particular offense meant to lawyers, just a relevant saying.)
3
Iceland had the right idea: jailed bankers.
7
Unbelievable. Disgusting company. Perhaps they should just be sued out of existence by the Justice Department.
6
No surprise that yet again Wells Fargo is crooked. Wonder what Warren Buffett's thoughts are on this? I find his continued support of this company baffling... As an investor I would steer clear of Wells Fargo.
5
WHY would anyone want to deal with this bank, all of them are basically corrupt but this one takes the prize. The culture of corruption that runs so deep it is never to be trusted. i only hope the deposits vanish unlikely, but on can hope.
Lets not forget that paragon of capitalism Warren Buffet is a major share holder and I am sure he knew nothing of this or the unauthorized accounts - sure.
Lets not forget that paragon of capitalism Warren Buffet is a major share holder and I am sure he knew nothing of this or the unauthorized accounts - sure.
3
Is Wells Fargo a particularly crooked financial institution, or are they just the biggest fish we have caught?
4
Corporate criminals -- they should have to return every cent plus punitive damages. Then, whoever signed off on that policy should be arrested and subject to the courts. No corporate cover here!!
5
Too big to fail? Too corrupt to fail?
LOCK THEM UP. Every one of those execs. Clawback the money. C'mon. The American people are becoming desperate and are sharpening their pitchforks. As they should.
LOCK THEM UP. Every one of those execs. Clawback the money. C'mon. The American people are becoming desperate and are sharpening their pitchforks. As they should.
6
Why is it so hard to prosecute top management at banks?
Some suggestions:
Do not loosen banking regulations, tighten them.
Break up the big banks.
Put some of the top guys in jail.
And get the money out of politics! (This should be priority #1)
Of course, this would take true leadership and concern for the we the not rich people.
Some suggestions:
Do not loosen banking regulations, tighten them.
Break up the big banks.
Put some of the top guys in jail.
And get the money out of politics! (This should be priority #1)
Of course, this would take true leadership and concern for the we the not rich people.
3
Every single one of those customers should be paid triple damages, as is customary in fraud cases, as compensation for the suffering caused. And WF needs to repair the credit records of all those affected -- how do you even DO that, when the effect of the extra charges cascades through people's finances?
5
Allow me a moment to daydream. Wells Fargo holds my mortgage. Wells Fargo seems to be slowly imploding. Wells Fargo goes under. My mortgage disappears. Am I dreaming?
1
I knew there was something wrong with Wells Fargo years ago when they wouldn't finish opening a checking account for me without my signing up for a line credit account I did not want and never used. And God forbid that you had a couple of extra dollars in your savings account. No thank you, I don't want to talk to a banker... I finally got tired of them constantly trying to sell me something I didn't want or need and literally moved my money across the street to another bank.
3
Creating accounts that customers didn't ask for and didn't want. Adding insurance policies that customers didn't ask for and didn't need. Is this a bank, or is this a criminal enterprise?
4
Financial institutions have proven themselves time and again to be untrustworthy and amoral. Regardless, Republicans and this administration continue to throw around the canard that regulations are bad and killing business. Despite incessant whining about regulations CEOs, Senior Management and shareholders of these institutions are hardly suffering. Yeah capitalism is great ain't it.
3
Wells Fargo isn't a bank, it's an extortion racket. Again and again they admit to defrauding their customers and regulators basically do nothing.
Wells needs to be fined heavily (in the hundreds of millions of dollars) or simply broken up into pieces and sold off to more ethical players in the market.
That would teach bankers that they can't pull stunts like this repeatedly and expect to get away with it after a token fine and a slap on the wrist.
Wells needs to be fined heavily (in the hundreds of millions of dollars) or simply broken up into pieces and sold off to more ethical players in the market.
That would teach bankers that they can't pull stunts like this repeatedly and expect to get away with it after a token fine and a slap on the wrist.
6
Wells Fargo indicates that they 'self-disclosed' the practice implying that this receives them of any guilt? If I stole the same amount of money from an individuals house that this bank has stolen, I would be in jail now. And our current administration wants to lessen regulation? Banks like Wells Fargo need 1:1 supervision of the management staff to assure honesty. Not someone I would want to have electronic access to my hard earned money.
3
Another reason to never ever have automatic withdrawal except maybe for utilities.
2
I used to be a firm believer in " caveat emptor" but Banks like Wells Fargo strong arming customers into buying unwanted insurance , unneeded accounts,
mines polluting our rivers and drinking water, auto companies cheating on emissions and our planet, their suppliers installing faulty airbags etc I fully understand why regulations are needed.
Add to this the failure of our financial system in 2007 and it is clear getting rid of regulations for the sake of an ideology without recognizing the protection they mayafford American consumers is questionable
By all means let's constantly review regulations to measure effectiveness but setting quanttively targets to reduce regulations irrespective of the impact on consumers is reckless and wrong
mines polluting our rivers and drinking water, auto companies cheating on emissions and our planet, their suppliers installing faulty airbags etc I fully understand why regulations are needed.
Add to this the failure of our financial system in 2007 and it is clear getting rid of regulations for the sake of an ideology without recognizing the protection they mayafford American consumers is questionable
By all means let's constantly review regulations to measure effectiveness but setting quanttively targets to reduce regulations irrespective of the impact on consumers is reckless and wrong
2
I am fortunate to have a car, but I have friends in Houston that do not. It's 100 degrees today, then sprawl of this Petropolis consumed another section of the Katy prairie and the pine forest, and 40,000 vehicles passed my apartment entry as they do on most weekdays. Having a car repossessed can make life veery unpleasant and more chaotic and uncertain very quickly. Shame on Wells Fargo.
3
Another good reason to deregulate banking.
1
" said the bank was determined to make customers whole "
That should NOT be the end of it. Those responsible need to be prosecuted by the DOJ
Let's see if the Trump administration does what the Obama administration failed to do. After wrecking havoc on ordinary Americans, not a single banker went to jail.
That should NOT be the end of it. Those responsible need to be prosecuted by the DOJ
Let's see if the Trump administration does what the Obama administration failed to do. After wrecking havoc on ordinary Americans, not a single banker went to jail.
12
Those responsible need to be prosecuted by the DOJ
WHOSE DOJ would that be? Trump's Sessions', Rosenkrantz's , Comey's?
Lots of variables there.
WHOSE DOJ would that be? Trump's Sessions', Rosenkrantz's , Comey's?
Lots of variables there.
1
I was a longstanding customer of First Security Bank, which had several branches throughout Utah. As soon as Wells Fargo acquired First Security and put their own brand on the buildings, the customer service diminished. Wells Fargo started charging fees for things that had always been free. Bank tellers became more difficult. The bank phone number -- previously to the bank branch itself where my account had been opened -- changed to a 1-800 number with a phone tree. I left the bank at that time found a new bank and have always been glad that I did.
10
My guess? POTUS would approve of those business practices.
11
Which is why banks need to be very tightly regulated and the consumer protection department that Democrats were trying to get in place needs to closely monitor them. As their largest shareholder (or one of the largest) where is Warren Buffet on this? How can he keep standing by a company that is this poorly run. We have moved our accounts from Wells to another bank.
16
Sorry, I am having difficulty understanding this one. The bank was able to debit clients for something they had not signed for? How is this even possible?
9
anaything is possible in the banking TWILIGHT ZONE.
2
The example given 275 to 325 is simply NOT the case here in Michigan.
275 would routinely be advanced to 475 or more. A Comprehensive policy in Michigan is the highest in the country, 2,600 per year. And . no, General did not check,, each person had to prove that he or she was covered after the fact. Prove and then wait.
275 would routinely be advanced to 475 or more. A Comprehensive policy in Michigan is the highest in the country, 2,600 per year. And . no, General did not check,, each person had to prove that he or she was covered after the fact. Prove and then wait.
1
Wells Fargo stock price Feb. 1, 2009: $12.10
Wells Fargo stock price July 28, 2017: $53.30
Legalized mafia.
Wells Fargo stock price July 28, 2017: $53.30
Legalized mafia.
45
I have closed my accounts and sold my stock in this dreadful company. Corporate greed - there are no words.
33
It's time to shut down this racket, a bunch of liars, thieves and crooks. Lock them up. Dissolve the company.
26
What Wells Fargo needs is to be taken out of business and have its top executives arrested and convicted and sent to jail for fraud and swindling and stealing. Short of that it will be business as usual at the banks.
33
I agree wholeheartedly. Note what a wheedling WF executive said (F. Codel, quoted in the article) -- that "“We have a huge responsibility and fell short of our ideals for managing and providing oversight of the third-party vendor and our own operations.” Gotta get that 'third-party vendor' in there for wiggle room.
Disgusting.
Disgusting.
1
Frank Dodd, anyone? Truly, how could/can a financial institution of this size operate like a...like a...every simile I come up with derides the comparison.
8
The government should break up Wells Fargo, and ban its executives from working in any banking industry, anywhere. I've begun the process of removing my accounts from them.
20
How this grotesque configuration of fraud continues in business shows just how numb most Americans are. Everyone with a whit of sense should get their money out immediately and let this ship sink.
17
Remember those old cowboy movies where it was Wells Fargo getting robbed? Well they got their revenge.
17
Positively the WORST Bank in the country! Then again- so is B of A and Chase. It's a three way tie for the bottom!
24
We switched from Wells Fargo to Key Bank. Had a few small issues but overall been very happy with them compared to WF.
3
One thing about Wells Fargo that I haven't seen yet is their bait and switch scheme for credit card processing for small business owners.
A few years ago my local branch reached out to me, took a look at my statement from my then current credit card peocessor, and said that they could save me money. I bit. My rate started at 1.2% but within a year it more than doubled. I complained and they knocked off 1% which
still was more than I was paying before. In a few months the rate crept back up again. I complained. They said they couldn't do anything and anyway the credit card processor was really some other company. I said that, well, your name is on the bill. They said blah blah blah and so it goes with Wells Fargo.
A few years ago my local branch reached out to me, took a look at my statement from my then current credit card peocessor, and said that they could save me money. I bit. My rate started at 1.2% but within a year it more than doubled. I complained and they knocked off 1% which
still was more than I was paying before. In a few months the rate crept back up again. I complained. They said they couldn't do anything and anyway the credit card processor was really some other company. I said that, well, your name is on the bill. They said blah blah blah and so it goes with Wells Fargo.
15
Let us prey. What fine, upstanding, family values. They've never received a penny from me, and NEVER will.
7
Wait...this is shocking...a big bank hurt its customers. I can't believe that. All the big banks are soooo nice.
4
Time to break up the behemoth banks. They're obviously out to steal their customers' assets whenever they have the chance.
8
There's a word for this kind of predatory behavior: fraud. Wells Fargo needs to be made to pay back every expense customers were charged, along with a very large fine. They should also offer free credit repair services. Of course, nothing can make up for the time and inconvenience their customers suffered.
I'm thinking of changing banks to one of the large American banks (Chase, Citibank, Bank of America, or Wells Fargo). WF is out. I dont know if any bank doesn't engage in illegal activity, but WF has been especially bad lately.
I'm thinking of changing banks to one of the large American banks (Chase, Citibank, Bank of America, or Wells Fargo). WF is out. I dont know if any bank doesn't engage in illegal activity, but WF has been especially bad lately.
4
No, don't do it -- find a small local bank or a credit union. You'll get much better service and probably a better deal.
7
Angelo Mozilo never went to jail either. That's just how we allow finance folks to navigate. Embarrassing.
8
What's it going to take to throw these guys in JAIL? Or, like Trump, can they shoot someone on Fifth Avenue and walk away? They are destroying peoples' lives. It amounts to the same thing.
9
Yes, and notice the continued lying by Mnuchin and Otting before Congress about foreclosure activities associated with their One West Bank. And Mnuchin claims to be harassed by questioning! It's unbelievable.
1
By now we all know that Wells Fargo is a criminal enterprise. The only question is, when will they be prosecuted under the RICO act?
18
If corporations are indeed legally "people", can't they get the death penalty?
14
What do you think happened to Arthur Andersen?
Pro tip: corporations are "persons" in the eyes of the law, not "people". There is actually a huge difference, but that will be covered in a future tutorial.
Pro tip: corporations are "persons" in the eyes of the law, not "people". There is actually a huge difference, but that will be covered in a future tutorial.
1
They're sorry they got caught, not they made an error
Management should go to jail
Management should go to jail
11
What university business schools produce this sorry management style? Trump University? As they say, the world's skinniest book is titled "Business Ethics".
7
In 1974 I joined my credit union and never looked back.
9
There is apparently no depth which Wells Fargo will not sink to to scam money from its customers. I wonder why anyone would continue to do business with them. It's just one scandal and scam after another with Wells Fargo.
9
Are there no prison cells available to accommodate Wells Fargo's criminal executives? White collar gangsters are not above the law even if they have political friends in high places. Lock them up.
14
We take full responsibility for these errors....” Ms. Temple added.
"Errors"? Come on. Errors are a "one-off" sort of thing.
This was a planned program executed by design over many years (2006-2016 right?) with incredible scale (800,000 victims).
Franklin R. Codel, the head of consumer lending: “We self-identified this issue, and we made the right business decisions to end the placement of the product.”
That's a statement just as ridiculous as Ms. Temple's. Let me translate: "after 10 years of getting away with this scam we were found out and decided to stop"
Gretchen Morgenson is doing a great job here just as she did during the sub-prime mortgage meltdown. There are a lot of individual horror stories underlying a travesty like this. I hope she writes about a few of those so people can be jolted out of any "just another scandal" numbness and really understand the human damage done.
"Errors"? Come on. Errors are a "one-off" sort of thing.
This was a planned program executed by design over many years (2006-2016 right?) with incredible scale (800,000 victims).
Franklin R. Codel, the head of consumer lending: “We self-identified this issue, and we made the right business decisions to end the placement of the product.”
That's a statement just as ridiculous as Ms. Temple's. Let me translate: "after 10 years of getting away with this scam we were found out and decided to stop"
Gretchen Morgenson is doing a great job here just as she did during the sub-prime mortgage meltdown. There are a lot of individual horror stories underlying a travesty like this. I hope she writes about a few of those so people can be jolted out of any "just another scandal" numbness and really understand the human damage done.
16
The only ones who might be surprised by this are those who have never banked or borrowed there.
6
I am looking forward to the Justice Department prosecuting this aggressively and asking for maximum sentences.
4
This bank should be forced to devide. The CEO should be fined , jailed and forced to admit guilt.
3
The California variant of our Urban Elite doing what they do best.
2
I keep asking myself. Why would ANYONE retain a Wells Fargo consumer account of any kind at this point?
14
So.....
And Trump University was a scam too.
It's not the governments' role to come between unscrupulous business people
and
the marks.
It the historical divide between the haves and the know nothings.
If you can't read and understand a contract,
blame public education and the teachers union.
And Trump University was a scam too.
It's not the governments' role to come between unscrupulous business people
and
the marks.
It the historical divide between the haves and the know nothings.
If you can't read and understand a contract,
blame public education and the teachers union.
4
This is not a bank, it's a criminal conspiracy. Why aren't they up on RICO charges?
8
the "ideals" of this big bank is to cheat and steal from its own customers. glad i have not done business with this bank, it directors and its top executives. it might be safer to deal with organized crime/mafia identified as such.
why aren't the top officers and directors of this bank prosecuted? have they bribed federal officials that have jurisdiction over these banks? are they bribed? i do not know, but i assume something strange or illegal is going on. why are my fears wrong?
why aren't the top officers and directors of this bank prosecuted? have they bribed federal officials that have jurisdiction over these banks? are they bribed? i do not know, but i assume something strange or illegal is going on. why are my fears wrong?
1
Wonder what would happen to this "continuous" cheating if the responsible executive took the "perp walk" on camera and went to jail, was fined, fired, and banned from the industry forever?
2
I really do like the Wells Fargo response "only 570,000 may qualify for a refund".
Once more Wells Fargo steals with impunity, and when they got caught, they confirmed that "improper" insurance practices took place. An once more, the bank will pay a fine, which will be minuscule compared to the monies they made and the disruptions they have caused in peoples lives.
This garbage will not end until they take out executives in handcuffs for a perp walk. Oh yes, they will sacrifice some middle manager in the banking hierarchy, never punishing the true offenders.
And it will go on. Unless people spend time in jail, or the economic punishment is ten times the stolen money, this will not end.
Once more Wells Fargo steals with impunity, and when they got caught, they confirmed that "improper" insurance practices took place. An once more, the bank will pay a fine, which will be minuscule compared to the monies they made and the disruptions they have caused in peoples lives.
This garbage will not end until they take out executives in handcuffs for a perp walk. Oh yes, they will sacrifice some middle manager in the banking hierarchy, never punishing the true offenders.
And it will go on. Unless people spend time in jail, or the economic punishment is ten times the stolen money, this will not end.
10
I don't understand why anybody still uses Wells Fargo. They are nothing but bad news about even worse practices.
5
As many as 20,000 people lost their cars in this latest Wells Fargo fraud. As punishment every executive at the bank above a Vice President should be forced to walk to work for the next ten years.
7
As a Wharton finance MBA, I heartily endorse the notion of profit as an earned reward for an efficiently-provided good or service. After all, done correctly that's how a system outperforms a bunch of commissars making all the decisions.
But the financial sector appears to have completely morphed from Financial Services to Financial Masters. Rather than existing to facilitate the financial needs of customers, they appear hellbent on making the customers exist for their own good and wellbeing. Obviously that can't last.
The hard part is figuring out how much of this is attributable to an inherent lack of ethics and/or poor regulation and how much is due to the nearly-inescapable pressures on otherwise decent people resulting from the bewildering lack of real returns on investment in a historic low interest rate environment.
As the African proverb puts it: a shrinking water hole changes the behavior of the animals. But it's impossible to ignore that consolidation and concentration has made the remaining animals much larger than is probably healthy.
Increased regulation could help, but would likely be much less effective than mandated disaggregation. Break 'em up and make 'em better.
But the financial sector appears to have completely morphed from Financial Services to Financial Masters. Rather than existing to facilitate the financial needs of customers, they appear hellbent on making the customers exist for their own good and wellbeing. Obviously that can't last.
The hard part is figuring out how much of this is attributable to an inherent lack of ethics and/or poor regulation and how much is due to the nearly-inescapable pressures on otherwise decent people resulting from the bewildering lack of real returns on investment in a historic low interest rate environment.
As the African proverb puts it: a shrinking water hole changes the behavior of the animals. But it's impossible to ignore that consolidation and concentration has made the remaining animals much larger than is probably healthy.
Increased regulation could help, but would likely be much less effective than mandated disaggregation. Break 'em up and make 'em better.
10
The Trump administration and Republican leaders want to severely restrict the funding and regulatory authority of the Consumer Financial Protection Bureau.
They are upset that when the CFPB fights against unfair practices of many financial businesses, then this reduces the profits of these companies.
It is interesting to check out the website for the Consumer Financial Protection Bureau, which has helped over a million Americans to mediate complaints with financial businesses. See how easy it is to enter a complaint.
They are upset that when the CFPB fights against unfair practices of many financial businesses, then this reduces the profits of these companies.
It is interesting to check out the website for the Consumer Financial Protection Bureau, which has helped over a million Americans to mediate complaints with financial businesses. See how easy it is to enter a complaint.
3
Why is this Bank still open for business? First it was opening additional bank accounts for existing customers without their authorization, now swindling 800,000 customers with unwanted auto insurance. The Feds need to close this bank down.
11
“We have a huge responsibility and fell short of our ideals for managing and providing oversight of the third-party vendor and our own operations,” Franklin R. Codel, the head of consumer lending at Wells Fargo, said in an interview. “We self-identified this issue, and we made the right business decisions to end the placement of the product.”
Well, that's it. They self-policed and ended the practice. That good old corporate mea culpa should be great comfort to the 800,000 swindled customers. These executives don't get it. They are so used to coming up with schemes and products to defraud their customers they have no idea what ethics are.
Well, that's it. They self-policed and ended the practice. That good old corporate mea culpa should be great comfort to the 800,000 swindled customers. These executives don't get it. They are so used to coming up with schemes and products to defraud their customers they have no idea what ethics are.
12
Wells Fargo operates as if it were trained by tRump University School of Business.
17
What Wells Fargo needs is an ethics officer that reports to the Board of Directors. As an investor and an account holder at Wells Fargo, I am dismayed to hear more of these profit gouging practices that keep on revealing themselves and damaging the brand of Wells Fargo. Makes me very leery of taking out a loan at Wells Fargo bank for anything related to house, car, home improvement or becoming a client of their investment services.
5
Ethics Officer. Surely you jest. That is like suggesting an ethics officer for one of the five familys. This bank is a RICO institution with a pattern of repeated corruption. The entire executive management should be terminated and the board of directors that has tolerated the criminal culture of the bank to exist should be replaced. The OCC, the FED, the various state regulators have all failed to do their duty to regulate this bank.
23
I hate it that I am practically a captive customer of Wells Fargo. It's the only bank within walking distance of my home, and I have banked with the bank that occupies that building since the late 1960s when it was a branch of the Virginia National Bank (a new bank was formed in 1998 named "Virginia National Bank" but that is an entirely different bank).
They first merged with Richmond's First & Merchant's Bank to become Sovran Bank. Then they became First American, then First Union, then Wachovia, and then Wells Fargo. I kept an account there the whole time.
I had banked with Wells Fargo when I lived in Los Angeles in the early '80s and they were a fine bank back then, very customer-oriented.
If they weren't so darn convenient, I would take into account their recent nefarious policies and close my accounts, which I have had for fifty years.
They first merged with Richmond's First & Merchant's Bank to become Sovran Bank. Then they became First American, then First Union, then Wachovia, and then Wells Fargo. I kept an account there the whole time.
I had banked with Wells Fargo when I lived in Los Angeles in the early '80s and they were a fine bank back then, very customer-oriented.
If they weren't so darn convenient, I would take into account their recent nefarious policies and close my accounts, which I have had for fifty years.
4
I am sure they will come up with a scheme to take all your money from your accounts, and then you won't be a customer with them anymore.
8
It depends on what your banking needs are, how much you have, and your credit score but do look into other banks. I abhor Bank of America so, other than my mortgage, I gradually moved all my assets elsewhere into local credit unions. There are also some excellent online banks which have zero or low-cost fees, better interest rates, and good customer service, Charles Schwab is excellent -- you can use ATMs anywhere and they will reimburse you, no foreign transaction fees for travellers. schwab does require a credit check. (no affiliation with Schwab except as a customer)
8
Bank online
2
What I don't understand is why people still bank with Wells Fargo? If it's the only bank in town, ok. but still I would be willing to be inconvenienced and bank elsewhere. Maybe it's because they have not been harmed by Wells Fargo. After all, we live in a time where too many of us would not stand up for an injustice done to someone else. Since we can't rely on the federal government to do anything, it's up to consumers to show Wells Fargo how to be a good community member.
8
As a staunch believer in the capitalist system, I find it truly disturbing that none of the business leaders who perpetrated these fraudulent actions have been prosecuted and sent to prison.
I find it galling when an entire industry pays the price for the criminal actions of a few bad actors. We have piled onto the banks with onerous regulations when all that was really needed was enforcement of the already good regulations that were in place. When infractions occur the responsible parties need to be prosecuted and put in jail.
I still find it bewildering that no senior manager from VolksWagen has not been prosecuted.... This is the second go around for Wells Fargo, someone needs to be held responsible for what has occurred. Someone created the culture that allowed this to happen and the compensation system that rewarded these behaviors. They knew what they were doing and need to be held accountable....
Too bad Obama wasn't a bit more thoughtful about this, god knows our current president won't do anything to stop these behaviors..
I find it galling when an entire industry pays the price for the criminal actions of a few bad actors. We have piled onto the banks with onerous regulations when all that was really needed was enforcement of the already good regulations that were in place. When infractions occur the responsible parties need to be prosecuted and put in jail.
I still find it bewildering that no senior manager from VolksWagen has not been prosecuted.... This is the second go around for Wells Fargo, someone needs to be held responsible for what has occurred. Someone created the culture that allowed this to happen and the compensation system that rewarded these behaviors. They knew what they were doing and need to be held accountable....
Too bad Obama wasn't a bit more thoughtful about this, god knows our current president won't do anything to stop these behaviors..
9
Their trump's buddies.
I have my car loan through wells fargo. How do I learn if I've been a victim of this practice and will there be compensation from the bank?
4
Hey... nobody has gone to jail, so it must all be good.
Just a little misunderstanding.
Sorry about ruining hundreds of thousands of life's. Here, lets pay a little fine and just forget about it.
Worked for the other administration, I'm sure this one will take notes and give out participation trophies.
And the beat goes on...
Just a little misunderstanding.
Sorry about ruining hundreds of thousands of life's. Here, lets pay a little fine and just forget about it.
Worked for the other administration, I'm sure this one will take notes and give out participation trophies.
And the beat goes on...
5
But they still have plenty of customers. The previous scandals didn't seem to create a stampede away from them.
Stop looking to government to render justice. This is a market economy, right?
But it*s easy to express outrage on a comments thread. To close your account requires a little bit of effort and annoyance. So--
That's why all these wretched institutions remain in business, and their CEOs keep pulling in the big bucks. Outrage is cheap. Action is costly--even slightly so.
Me? I used a credit union for years and years, in NY. Up here I found a local, mutually-owned bank, and they suit me fine.
Stop wringing your hands, and do something...
Stop looking to government to render justice. This is a market economy, right?
But it*s easy to express outrage on a comments thread. To close your account requires a little bit of effort and annoyance. So--
That's why all these wretched institutions remain in business, and their CEOs keep pulling in the big bucks. Outrage is cheap. Action is costly--even slightly so.
Me? I used a credit union for years and years, in NY. Up here I found a local, mutually-owned bank, and they suit me fine.
Stop wringing your hands, and do something...
10
Yawn. Leadership at Wells should be charged using RICO. This is a corrupt, money grubbing company who will still your ailing grandmothers last penny to make their weekly "solution" sales goals. They pay a fine, nobody goes to jail. and they all get paid.
18
Deny, deny, deny! then "refine" the numbers....then put a nice ribbon on the pig...
Please, by all means, keep writing articles about the Goldman Sachs crook who's also a fun-loving DJ.
It enables them and others like these Wells Fargo crooks to scratch with one hand and Scrooge with the other.
It enables them and others like these Wells Fargo crooks to scratch with one hand and Scrooge with the other.
3
I'll believe things have changed at these large criminal empires (Wells Fargo, J P
Morgan Chase), Bank of America, et al,) when the gangsters who run these banks are put in jail. No more slimey lawyers from Harvard (everybody is entitled to legal representation) buying their "clients" off with hundred million dollar chump change "fines."
However, I don't think anything will change because the Congress is in their pockets.
Morgan Chase), Bank of America, et al,) when the gangsters who run these banks are put in jail. No more slimey lawyers from Harvard (everybody is entitled to legal representation) buying their "clients" off with hundred million dollar chump change "fines."
However, I don't think anything will change because the Congress is in their pockets.
16
WARREN BUFFETT is the largest shareholder of Wells Fargo and is currently trying to have the percentage limits removed so he can own more shares.
9
Yes, well don't be fooled by Warren. He'd fire half the people who work for his companies if it would increase his wealth.
Unfortunately the media can never stop fawning over this character because he looks like everybody's cute little grandpa.
Oh I know he courageously observed that his secretary has a higher income tax rate than he does. And at Wells Fargo crime continues to pay.
Unfortunately the media can never stop fawning over this character because he looks like everybody's cute little grandpa.
Oh I know he courageously observed that his secretary has a higher income tax rate than he does. And at Wells Fargo crime continues to pay.
2
It is beyond my understanding why anyone would use these mega-banks for anything. My experience with the credit union we've used for years has been nothing but positive.
Credit unions are not-for-profit financial cooperatives, whose earnings are paid back to members in the form of higher savings rates and lower loan rates. Banks are for-profit corporations, with declared earnings paid to stockholders only. Why would you expect these commercial banks to do anything for you unless it maximized their profits?
Credit unions are not-for-profit financial cooperatives, whose earnings are paid back to members in the form of higher savings rates and lower loan rates. Banks are for-profit corporations, with declared earnings paid to stockholders only. Why would you expect these commercial banks to do anything for you unless it maximized their profits?
12
How many times does Wells Fargo have to make headlines for nefarious practices before people decide to do their banking elsewhere?
Vote with your feet.
Vote with your feet.
6
I think it's charming that the bank refers to this behavior as "errors".
12
dissolve the corporation. They have become a criminal enterprise
7
Just another day in the life of a country where the oligarchs and plutocrats get to abuse, steal from, and mislead whomever they want without fear of any kind of punishment or legal ramification----- while poor people get thrown in jail or even killed for nothing more than "driving while black."
9
Wells Fargo buried the use of their financial advisors in a simple business acount with my condo association and it wasn't until the treasurer position on the condo board turned over that it was discovered--the clause and the fee were removed from our account. Of course, there was a fee and, of course, the board never thought of asking Wells Fargo for advice. this is all of a piece and I can't imagine a principled defense for allowing any of this to happen.
2
This bank is primed to steal customers' money. A criminal prosecution should be cranked up immediately. The Board should fire executives who connived and endorsed this, even by their inactions. This is disgusting. This rogue institution needs to be given yet another blast of bad publicity and go through the pain and expense of "making customers whole."
Now, who says we need no bureau at Treasury to protect customers from the frauds and other crimes of financial institutions?
Now, who says we need no bureau at Treasury to protect customers from the frauds and other crimes of financial institutions?
5
It's outlandish that customers routinely end up in the penitentiary for committing fraud against a bank, but massive theft against customers by banks has no consequences for the white collar criminals running the banks. What a joke.
10
...and the Repubs want to do away with regulations!!!! Where is Elizabeth Warren and the troups????
5
All I feel is disgust whenever I see one of their buildings. How on earth are they still in business? Every one of their employees who participated in this mass scam should be in jail.
2
Is there any other business who has defrauded more people over a longer period of time that has been allowed to stay in the same business, and has had so little repercussions to its malfeasance? All of its past and present irresponsible upper management should be under indictment, and punished where appropriate.
8
Can we put at least ONE of these bank executives into prison? Nobody ever has to pay the price for their criminal theft except those who were stolen from.
They are not too big (or rich) to jail. They need deterrents. Until we start putting these white collar crooks behind bars this will continue unabated.
They are not too big (or rich) to jail. They need deterrents. Until we start putting these white collar crooks behind bars this will continue unabated.
6
Why, after all the years of scams, would anyone do anything with this bank?
6
Why would anyone bank at Wells Fargo any longer?
6
I had no choice. My home loan was sold to WF. I have to re-fi to get away from them. I would have never applied for a loan from them.
3
No longer bank with any big name bank. Went with local credit unions.
3
Yes. And I've found the small, local commercial banks to be good too.
Fines, however large, are not sufficient, since a mega-corporation like Wells Fargo will just find a way to pass the cost along to customers.
Until the responsible executives find themselves in prison, nothing is going to change, at Wells Fargo or anywhere else.
Until the responsible executives find themselves in prison, nothing is going to change, at Wells Fargo or anywhere else.
10
Wells Fargo is known for underpaying its employees, compared to other comparable banks. You get what you pay for.
7
"Wells Fargo took issue with some of the figures in its own report."
I bet. For example:
"...the bank estimated the insurance may have contributed to 20,000 wrongful repossessions, not 25,000."
WF, even if your "estimate" is correct, 20,000 illegal repossessions sounds like a lot to me. But then again, it's only a number, right?
I bet. For example:
"...the bank estimated the insurance may have contributed to 20,000 wrongful repossessions, not 25,000."
WF, even if your "estimate" is correct, 20,000 illegal repossessions sounds like a lot to me. But then again, it's only a number, right?
10
We don't need consumer protection regulations, or regulators to enforce them. The market will police itself. Right.
21
Why is this company still in business?
28
I have marginal credit. I purchased an SUV for my son, and, to my relief, underwent no rigorous credit approvals. My loan went to WF at 6% interest. I was grateful, nonetheless, feeling that my credit standing deserved the punishment. I was harassed by WF three or four times, demanding proof of insurance, although I had provided it from day one. That was in 2014. About every six to nine months, I get the same demand. We have never so much as been late on a payment, and have continued to pay 25 to 50 dollars extra every month. We will have this loan paid off next May-June. I can't wait.
So, my beef is only the threat; they did not actually try to charge us for the addl insurance.
Still, I don't feel good about them.
So, my beef is only the threat; they did not actually try to charge us for the addl insurance.
Still, I don't feel good about them.
7
By now we should realize that banks (not just Wells Fargo) have no interest in their clients themselves, just profit. And maybe that is ok. However the problem is that we continue to see these banks cross the line into criminal behavior but no senior executive or bank has ever faced any criminal charges. They just pay a fine (these now total in excess of three hundred billion) which hurts the shareholders while the top brass continue to receive higher and higher paychecks.
We can not expect this behavior to stop unless the senior executives believe that a criminal charge is a real possibility. Part of the solution may be to forbid SEC, DOJ and other Federal officials charged with bank oversight to join these firms for a period of time after leaving government service.
We can not expect this behavior to stop unless the senior executives believe that a criminal charge is a real possibility. Part of the solution may be to forbid SEC, DOJ and other Federal officials charged with bank oversight to join these firms for a period of time after leaving government service.
13
How about this for a resolution. Any victim of this scheme who was against the formation of Elizabeth Warren's Consumer Financial Protection Bureau should get nothing in terms of restitution.
This is in addition to my provision that anybody who agreed with George Bush's banning of stem cell research funding.. they wouldn't qualify for treatment using any therapies developed after Obama lifted the ban.
This is in addition to my provision that anybody who agreed with George Bush's banning of stem cell research funding.. they wouldn't qualify for treatment using any therapies developed after Obama lifted the ban.
9
Until those responsible go to jail these practices will continue - different day different way to make money. Given the number of deplorable schemes unmasked at Wells Fargo the senior executive staff should be held criminally liable. But thanks to the Supreme Court deeming that corporations are people to this will not happen any time soon - especially with this president.
10
And who has been fired, forced to resign and criminally and civilly prosecuted for this action by Wells Fargo?
45
Certainly not the managers who pushed for this contrived scheme.
2
When I walk by a Wells Fargo now all I see is a sign that says "Public Restroom"
4
I am simply astonished at the never ending litany of bad stories about WF.
13
Why is Wells Fargo still in business and who would bank with them at this point?
35
Wells Fargo has morphed into a modern day Enron. Where does it stop? Wells is overtaking Goldman as the head of the financial mafia.
Time to clean house at the top and start over.
Time to clean house at the top and start over.
19
Pathetic that Wells Fargo sees a distinction between 25,000 or 20,000 customers had their cars wrongfully repo'd. More pathetic is the 40% of the country that feels the answer to issues like this is more deregulation.
I second the notion that RICO needs to be used against corrupt organizations like Wells Fargo.
I second the notion that RICO needs to be used against corrupt organizations like Wells Fargo.
59
I'm baffled that the public has not decided that these big banks do not serve its welfare and find local banks or credit unions for services.
9
This company needs to be nationalized and the funds distributed to the victims.
13
I am not happy with this company. Therefore, I'm closing my account. If thousands of others are unhappy with this company, thanks to the good reporting by the NYT, then they should close their account as well. This will effect change. I have a feeling regulation #16393b.201 will not. They will never stop, unless we the people stop them.
7
"National General was supposed to check if they had insurance" late in the article. I know Wells Fargo makes a better lead but these guys were the main fraudsters here with Wells Fargo being the Enablers ? Colluders? words we seem to be hearing a lot more of. So often I see this, a big corp uses it's billing services to enable fraudsters to rip people off with out being held accountable for the money they make from collecting for the crooks.
5
Except, Wells Fargo is supposed make sure National general was doing its job and Wells Fargo was making the requirement.
3
Why anyone would do any kind of business with Wells Fargo is beyond comprehension. The company continually proves itself to be nothing but a criminal enterprise. Why aren't the individuals responsible for instituting and executing its criminal behavior punished?
19
I have worked for or with banks my entire professional career. The number of corrupt employees needed to commit all abuse at Wells Fargo, where have everyone's morals gone?
4
And will any of them go to jail? Don't hold your breath!
10
If the NY Times obtained this report, why isn't there a hyperlink to it in this article? I'd like to actually see it.
3
I cannot imagine any reason why a consumer would continue to have any business whatsoever with Wells Fargo?
First, they bilk their own customers. That's a good company which does that!
Second, they're now paying out hundreds of millions of dollars in fines and reimbursement to those they bilked. They will then make up that loss by charging their customers more money for the services they receive.
Wells Fargo is a lose-lose-lose proposition. Dump them; there are hundreds of banks that aren't criminal and behave responsibly.
First, they bilk their own customers. That's a good company which does that!
Second, they're now paying out hundreds of millions of dollars in fines and reimbursement to those they bilked. They will then make up that loss by charging their customers more money for the services they receive.
Wells Fargo is a lose-lose-lose proposition. Dump them; there are hundreds of banks that aren't criminal and behave responsibly.
29
For me, this kind of fraudulent conduct committed by a bank like Wells Fargo makes me look on poorly at perhaps their largest investor, Warren Buffet. Why is he not coming out swinging about this mess.
Not such a good guy after all.
Not such a good guy after all.
15
Your point is well made; your conclusion, however, is inaccurate and unfair. Perhaps you should seek employment with Wells Fargo?
How are they still in business??
14
Any bank that acts as this one has should be out of business. What surprises me is that they still have any customers.
24
Wells Fargo is to banking as Trump is to business.
51
From Wikipedia:
The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing, closing a perceived loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because they did not actually commit the crime personally
So why haven't the executives of Wells Fargo been charged under this law?
The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing, closing a perceived loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because they did not actually commit the crime personally
So why haven't the executives of Wells Fargo been charged under this law?
81
I hope that Warren Buffett reads this article. He is in denial about just how bad was the character of former Wells Fargo CEO John Stumpf.
The news media, especially the New York Times, should ask Mr. Buffett for additional comment as a result of this New York Times story:
"The expense of the unneeded insurance, which covered collision damage, pushed roughly 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 wrongful vehicle repossessions, according to the 60-page report, which was obtained by The New York Times. Among the Wells Fargo customers hurt by the practice were military service members on active duty."
On April 10, 2017, the Wells Fargo Board of Directors announced that it had decided it was necessary to claw back an additional $28 million of pay from former CEO John Stumpf.
Maybe it is time for more claw backs. What do you think, Warren?
The news media, especially the New York Times, should ask Mr. Buffett for additional comment as a result of this New York Times story:
"The expense of the unneeded insurance, which covered collision damage, pushed roughly 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 wrongful vehicle repossessions, according to the 60-page report, which was obtained by The New York Times. Among the Wells Fargo customers hurt by the practice were military service members on active duty."
On April 10, 2017, the Wells Fargo Board of Directors announced that it had decided it was necessary to claw back an additional $28 million of pay from former CEO John Stumpf.
Maybe it is time for more claw backs. What do you think, Warren?
70
Wondering why GEICO was not the insurance company. Keep it all in the BH family.
1
Mr. Buffett already answered that question, in reference to the fraudulent AAA-ratings that Standard & Poors gave junk mortgage bonds: he never interferes with a successful business model.
Spoken like a true hero of crony capitalism....
Spoken like a true hero of crony capitalism....
1
This is what happens when International Mafia operatives are installed in major corporations. Rob everyone you can blind and make sure you have a good criminal lawyer who will keep you out of jail.
Now they're in OUR government at every level. Just imagine the destruction they are causing. WE THE PEOPLE must throw them out. NOW!
Now they're in OUR government at every level. Just imagine the destruction they are causing. WE THE PEOPLE must throw them out. NOW!
30
As a former employee of a bank that Wells Fargo acquired, none of this surprises me. Their "sales at all cost" culture was present in the early 1990's and continues to this day. The entire leadership should be replaced.
56
And politicians want to stop the Consumer Protection Agency from allowing class action law suits against financial firms. I suppose that as long as the majority of Americans remain non-voting and ill informed sheep they will be led to ... wherever they can generate the most income for those who control their lives.
122
White collar thieves need to be punished more severely, at least equal to the draconian sentences given to hapless drug users. More people are damaged by financial crime than physical crime, but the fear of a home invader outweighs the sleight-of-hand tactics of financial wizards.
69
Wells Fargo has become the Donald Trump of the banking industry.
14
I was shocked to read that Active Service Members of the military were affected by this scam. My question is why in god's name did they not use USAA? I think that that upstanding company would have straightened out a few things.
9
If only the Republicans had gotten rid of all those pesky "regulations", this wouldn't be a problem.
Not to worry. The Trump administration is hard at work in the swamp getting rid of regulations, consumer protections, and ethics oversight to prevent situations like this.
Not to worry. The Trump administration is hard at work in the swamp getting rid of regulations, consumer protections, and ethics oversight to prevent situations like this.
31
To respond to the commenters asking why no Wells Fargo executive are in prison, I think the answer is clear: only poor people go to prison in this country.
63
Not precisely true. In this country rich people *may* go to jail if they victimize other rich people. See Bernie Madoff.
Otherwise you're absolutely correct.
Otherwise you're absolutely correct.
2
If I went a stole a soldier's car, I'd be in jail.
38
Let's relax banking regulations...
6
So, tell us again why nobody from the front office at Wells Fargo isn't under indictment or in court yet. Those long, tortuous explanations are so illuminating to read. But NYT limits them to 1500 characters....
47
WHY hasn't Wells Fargo been shut down by now?
WHY isn't the entire board and top tier of management cooling their heels in jail by now?
WHY isn't the entire board and top tier of management cooling their heels in jail by now?
155
Nancy, as long as the American people don't put pressure on our elected officials to put folks of this sort in jail, they aren't going. We are responsible for the nonsense that allows for top management to take their fat bonuses and not be properly punished. Stumpf's $28 million bonus wasn't enough; he ought to have been tossed in jail. Crooks with expensive lawyers who navigate the system are tolerated by the public. Shame on us.
2
I will never, ever do business with this scamming outfit, Wells Fargo. Their top people belong in prison.
88
how many of the top executives at Wells Fargo have been prosecuted and gone to jail? they admit to millions of instances of fraud. this is not an instance of a few crooks in their branches. why do these people go free without being prosecuted? could it be the bribes they pay to many of the politicians? these bribes are sometimes called "political donations". this conduct could destroy are country. is our department of justice really in favor of law and order or are they in favor of putting the poor and only some members of our society in jail?
105
Too big to fail and too rich to jail. It might not seem fair but that's the way it works. If you interfere you might get socialism.
4
As WF is charged with organized crime RICO felonies the arm of that law should reach out to politicians who took money from WF and could be also indicted.
Why, after all the other violations that Wells Fargo has on record, some of them quite serious, are they still in business? Why haven't they been dissolved and their assets distributed? It seems to this reader that Wells Fargo is emblematic of what's wrong with our financial industry: too big to fail and too favored to be looked at objectively.
174
Each of the victims of this latest WF fraud should be given at least 10 times the value of their loss. Employees of WF involved should be charged and conficted of felony fraud and put in jail.
WF clearly acts like a good big to fail, or jail, mafia like organization to which RICO crimes should be investigated from the CEO and board all the way down.
WF clearly acts like a good big to fail, or jail, mafia like organization to which RICO crimes should be investigated from the CEO and board all the way down.
2
Consumers certainly need all the protection they can get. I am sorry to hear that Wells Fargo is once again accused of victimizing its clients. Any attempt to reduce the amount of Consumer Protection available through the governments, both state and federal, should be discarded, Clearly there are many cases of consumer fraud going undiscovered throughout the country.
33
The problem in this country is that there is much regulation. If there were no regulations on this it would not be a problem.
4
Yes, everything is so illegal.
1
It is clear that Wells Fargo is an outlaw bank. They have repeatedly defrauded their customers, broken banking regulations, federal & state banking laws. Massive fines and a management shakeup have not deterred their actions. It is time to shutter the bank. The Fed should take over the bank and unwind its assets. If the federal government will not take action to close the bank (an unlikely event under Trump), the various states should revoke their banking charter. Current and former officers of the bank should be arrested for fraud, theft and violations of the various banking regulations. They need to be tried, and if convicted, sentenced to long terms in either state or federal prisons.
An unequivocal message needs to be sent to the banking community: No bank is too big to be held accountable. If you go rogue, you will be shut down. If the officers of a bank know that they will be held personally accountable for the company's actions, they will get religion in a hurry. Compliance will be accomplished overnight. In order for this to happen, we must throw the scoundrels at Wells Fargo in jail.