Icelandic Supreme Court: all nine top bankers are guilty of market manipulation

914140

All nine of the top Icelandic bankers from the KaupĆ¾ing market manipulation case have been found guilty by the country's Supreme Court, which reversed the district court that had acquitted two of the defendants last year. Read the rest

Whistleblower docs: Wells Fargo was opening fake accounts in 2005

050-056c026d-1c66-4d42-9fae-a8

Dennis Hambek was a Wells Fargo branch manager. In 2005, he found Wells Fargo employees creating fake accounts in their customers' names (in order to meeting the company's punishing sales quotas and avoid being blackballed across the industry). He sent a certified letter about the practice in 2006 to Carrie Tolstedt -- the bank exec who oversaw the fraud and retired weeks ahead of the scandal with a $125,000,000 bonus -- and held onto the receipts. Read the rest

RBS deliberately crushed more than 1,000 healthy UK businesses to seize and sell their assets

14059902708_07b29d1be5_b

RBS, the bank that UK taxpayers bailed out during the financial crisis, after its reckless speculation drove it to bankruptcy, ran a fake "restructuring unit" that was pitched to business customers as a way of helping them weather the market turmoil, but was actually a loan-sharking operation that cranked up interest rates and imposed high penalties, deliberately driving healthy businesses into bankruptcy so that the bank could snap up their assets (illegally sharing information between business units so that RBS always beat the other bidders) and then selling them off to keep the bank profitable. Read the rest

Wells Fargo whistleblower describes bank's culture of blackballing threats and coerced corruption

5279526112_673c385ffc_b

On the latest Planet Money podcast (MP3), a former San Francisco Wells Fargo banker describes the bullying and coercion she faced from senior management while working at the bank's head office, and how the bank forced her out when she blew the whistle on fraud and then blacklisted her with other banks, forcing her out of the sector altogether. Read the rest

The Wells Fargo fraud came to light because of union organizers

iww_demonstration_ny_1914

Though Wells Fargo had been pressuring its employees to commit fraud since 1998, firing those who couldn't make quota, as well as the whistleblowers who came forward to report the fraud, it wasn't until the Committee for Better Banks launched a unionization drive to organize retail banking workers against punitive sales quotas that the crimes came to light. Read the rest

Report paints UK as the sick man of Europe

050-056c026d-1c66-4d42-9fae-a8

The pro-Brexit narrative insisted that the UK was one of Europe's greatest, most vibrant economies, and that, unshackled from European regulation, the country would be able to soar to the heights it deserves. Read the rest

Wells Fargo started demanding fraud of its employees in 1998; Illinois cuts Wells off from state business

050-056c026d-1c66-4d42-9fae-a8

Wells Fargo made a habit of firing employees who didn't make unrealistic sales targets, turning a blind eye to the fraud they had to commit in order to keep their jobs (and firing the whistleblowers who reported the fraud). Read the rest

State of California imposes 12-months' worth of sanctions on Wells Fargo

050-056c026d-1c66-4d42-9fae-a8

Following from Wells Fargo's 2,000,000-account fraud against its own customers -- part of a decade-old pattern -- the state of California has imposed sanctions on the bank, freezing it out of bond issues, brokerage business, and suspending all investment in Wells Fargo-issued securities. Read the rest

Wells Fargo execs will lose a few millions out of the hundreds of millions they got for abetting massive fraud

stumpf

Wells Fargo's Board of Directors have finally exercised their right to claw back part of the hundreds of millions of dollars taken home by two senior executives who were compensated on the basis of the fraudulent earnings the bank took in while opening 2,000,000 secret accounts in their customers' names, taking money out of those customers' real accounts to pay for the fees and penalties accrued by the fake accounts, and trashing their customers' credit in the process. Read the rest

Ex-Wells employees who were fired for NOT committing fraud launch $2.6B lawsuit

050-056c026d-1c66-4d42-9fae-a8

When four named whistleblowers came forward to reveal that they'd been illegally fired from Wells Fargo for reporting that the company was experiencing widespread fraud, it was deja vu all over again: Wells also punished whistleblowers who sounded the alarm during the subprime crisis, and was thus so totally compromised that they needed a $36B taxpayer bailout. Read the rest

Sim Fed Chairman

050-056c026d-1c66-4d42-9fae-a8

The Federal Reserve Bank of San Francisco has released a simulator that challenges you to be the Chair of the Federal Reserve and "achieve full employment and low inflation." Read the rest

How many Wells Fargo employees were fired for NOT committing fraud?

vulture-724431_960_720

When Wells Fargo fired 5,300 employees for opening 2,000,000 accounts in its customers name (stealing their cash and trashing their credit scores in the process), it wanted us all to know that it had cleaned house, because this was just 5,300 people who, without any help from senior management, all happened to coincidentally engage in the same fraud. Read the rest

Whistleblowing Wells Fargo loan officer describes years of fraudulent, criminal culture in the bank

storm_clouds

Beth Jacobson was a Wells Fargo loan officer who blew the whistle on the bank's predatory, racist loan-fraud in the runup to the 2008 financial crisis, which tanked the world's economy and nearly wiped out Wells Fargo (they were rescued with a $36B taxpayer-funded bailout). Read the rest

Advice for people defrauded by Wells Fargo

050-056c026d-1c66-4d42-9fae-a8

If one of the 2,000,000 fraudulent accounts Wells Fargo opened was in your name, the US government has some advice for you. Read the rest

Support the Consumer Financial Protection Bureau's action against predatory payday lenders

payday_notice_blog.original

The predatory payday lending industry -- "'legalized loan sharks collect 75 percent of their fees from people stuck in more than 10 loans a year by charging 300 percent APR" -- is lobbying hard to kill the proposed Consumer Financial Protection Bureau's proposed "debt trap" rule, "that would require lenders to determine whether borrowers can afford to pay back their loans and cut off repeated debit attempts that rack up fees and make it harder for consumers to get out of debt." Read the rest

Wells Fargo won't claw back $125m retirement bonus from exec who oversaw 2m frauds

050 056c026d-1c66-4d42-9fae-a8e96df290c5-1020x1178

Carrie Tolstedt is the Wells Fargo executive who presided over a titanic, multi-year fraud through which at least 5,300 of the employees who reported to her opened up fake accounts in Wells' customers' names, racking up fees and fines, trashing the customers' credit ratings, and, incidentally, pulling in record revenues for Tolstedt's department, which Wells' management recognized by giving her a $125M parting gift when she left the company at the end of July, just weeks before the scandal broke. Read the rest

Wells Fargo fires 5,300 employees for opening 2M fake accounts in customers' names

2011-11-22_Wells_Fargo_ATMs_lit_at_night

5,300 Wells Fargo employees created 2 million phony bank accounts and racked up huge fees, raking in commissions from their employer for being such great salespeople for the bank's services; meanwhile, the fees associated with the 2 million fake accounts created the appearance of much greater earnings for the bank, which it trumpeted to its investors. Read the rest

More posts