Posted by Steve Markowitz on September 22, 2016
Earlier this month Wells Fargo admitted that its employees created thousands of bogus credit card accounts to meet sales goals. This led to bonuses for many employees including high level ones. Wells Fargo fired over 5,000 employees for their involvement in the scandal.
The Wells Fargo scandal is inexcusable and heads should roll at the bank’s highest levels. At the same time it is amusing to read Elizabeth Warren’s scolding of Wells Fargo’s CEO John Stumpf’s “gutless leadership” for his pushing responsibility for the scandal onto lower-level employees. As an associate said of Warren’s double standard:
“I’m not defending this guy by any means, but I wonder if Elizabeth Warren told Hillary she is a gutless leader when she blamed her email issues and subsequent attempts at cover-up on her low-level employees. Something tells me I already know the answer…. “
|Wells Fargo Chief Accused of ‘Gutless Leadership’
|The chief of Wells Fargo, John G. Stumpf, appeared before the Senate Banking Committee. He apologized. He expressed regret. He vowed to make amends.
|But the senators were not having any of it. And the more he tried to explain, the more skeptical they became.
|Senator Elizabeth Warren even suggested he resign, saying that his pushing responsibility onto low-level employees showed a “gutless leadership.” On the issue of clawing back pay, Mr. Stumpf said it was a process that he could not get involved in.
|And this is not the end of it — Wells Fargo is under fire from multiple directions:
|• Mr. Stumpf has been invited to testify before the House Financial Services Committee, which is also investigating Wells Fargo.
|• Prosecutors are examining the scandal.
|• The Securities and Exchange Commission has been invited to join the fray by Senator Jeff Merkley, Democrat of Oregon.
Posted in Banks, Politics | Tagged: Clinton, gutless leadership, Hillary, Stumpf, Warren, Wells Fargo | Leave a Comment »
Posted by Steve Markowitz on November 22, 2011
Federal Deposit Insurance Corporation (FDIC) released a report on U.S. banks earnings that indicates overall profit levels are the highest they have been in four years. While the government may trumpet this as a sign that their interventions and bailouts have succeeded, a broader look says otherwise. Here are some of the figures released:
- The banking industry earned $35 billion in the last quarter, up from $24 billion in last year’s Q3.
- The FDIC currently considers about 11% of U.S. banks as financially problematic, marginally down for the same period last year.
- The very large banks made the bulk of the earnings increase.
- These very large banks accounted for about $30 billion of the industry’s $35 billion in earnings for the third quarter.
The FDIC’s fugues are telling and indicate that the very large banks like Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, the very banks bailed out by the U.S. taxpayers, are now making most of the banking profits. In addition, these banks are not making the profits by lending money in the quantity needed, but rather by taking nearly interest free money from the government and then loaning that money back to the government at a huge profit. Ludicrous.
It has become evident through hindsight that the bailouts of the large banks benefited the banks themselves, not the overall economy. A question remaining is whether the bailouts were the result of mistaken policy or the government’s purposeful attempt to assist fellow elitists in the banking industry.
Posted in Bailouts, Banks | Tagged: Bank of America, Banks, Citigroup, FDIC, Federal Deposit Insurance, JPMorgan Chase, Profits, Wells Fargo | Leave a Comment »