https://www.reuters.com/business/finance/wells-fargo-cfo-says-five-consent-orders-are-remaining-2025-02-11/
6 replies (most recent on top)
7 years and still going. Wow.. I heard WS talking about the CFPB woes and Wells Fargo. She made it sound like it happened yesterday. @cy+1jkvjwzv7 said, "much of what's in these consent orders is bogus bullsh*t that doesn't help anybody and creates so much inefficiency within the bank that the cures may be worse than the diseases." How is this so? Is it because the services and products aren't refactored but just covered over?
When consent orders go on for so long that they almost become teenagers, the reality is that there is so much ongoing turnover at both the regulator and WF that nobody understands the breadth and depth of the work that's been done to address them. The regulators personnel changes and they don't know what the detailed original findings were and at WF, the company solves for deliverables under these orders and then have to sit and wait for years before the regulator comes to validate. In the meantime, personnel changes at WF lead to process changes and unclear impacts to the original deliverable that was solutioned for. It all ends up in constant confusion about whether the company has met the regulatory commitments initially and/or whether it's sustainability continuing to meet them. And since regulators often don't fully validate themselves, instead requiring WF to hire independent consultants to do the validations, there's considerable interpretation risk inserted into everything when it comes to what was required vs. how WF interpreted it & what was done.
I think when WF has gotten consent orders lifted during Charlie's tenure, it's mostly because the regulators are basically saying - we'll lift these old ones and just place reliance on the other outstanding orders that still remain.
The OCC and FRB COs are 2 big ones that remain (which are approaching their 7th birthday) and basically encompass WF's ability to show it can identify and manage risk.
And the work on those orders suffers greatly mostly because nobody working on them today was a part of the original action plan deliverables and work that was originally solved for in 2020-2021 and nobody can tell a good story about the work that was done and how the environment has changed since then. That said, much of whats in these consent orders is bogus bullsh*t that doesn't help anybody and creates so much inefficiency within the bank that the cures may be worse than the diseases.
It’s all good. Got WF to pay me 8 months of severance while I double dipped for six of those months. Put a bunch of that into savings. Hope it worked out for you.
@a7+1jkvjwzv7 I was involved with RCSA & helped finished before the deadline & was also displaced.
I was heavily involved in the removal of the sales practices consent order last year and what do I get for it? Displaced! But happier to be out of that toxic place.
So they did away with half in the past 5.5 years?
The big ones are what remain after the last two were a decade in resolving, right?
Guess we'll be order-free about 2032.