wonder how he'll spin it. about 20 years worth of his salary.
https://www.cnbc.com/2023/08/08/regulators-hit-wall-street-banks-with-549-million-in-penalties-for-record-keeping-failures-.html
12 replies (most recent on top)
When Wells went BYOD, did traders have to migrate with the rest of us? If so, the result is exactly what you'd expect.
Bring back Tim Sloan
Its prior regimes fault
Not surprised. I think Wells Fargo has become an outlaw bank and fines are a cost of doing business. Probably more compliance training coming for the peons and a bonus for Charlie.
This used to be a large part of my job. It is impossible for firms to keep financial advisors (stock brokers) from using unapproved channels of communications.
There is just no way to prevent them from using personal cell phones, tablets and computers to communicate outside regulated channels.
And when they are caught, the firms always take a hit for it.
If the government was actually serious, they'd strip away the licenses of anyone caught the first time.
But government is for show. They want to look like they are actually doing something, without having to take the actual steps to end it.
You can't commit fraud in the 'open' hence the covert comms.
I have “a little” empathy towards the banks here if this all went down during the beginnings of Covid and we were all under pressure to figure out how to WFH.
Having said that -the executives are paid the big bucks to have foresight and knowledge to oversee and catch abuses.
Somebody in the C-Suite needs to get fired. Just saying.
Where do all the monies received from fines go? How are the funds deployed?
When the bold text in the article says:
"Wells Fargo biggest offender"
and the CEO has been in for 4 years already claiming he came in to clean up the company, it's time for the CEO to be fired for cause. A brand new CEO can get away with blaming predecessors for maybe 6 months to a year, but the article says "from 2019". In other words, that the illegal communications began when CS came in as CEO.
That's cause for termination. When a brand new bad practice started when you come in as CEO, that's 100% on you.
Looks like we're gonna get another training course on the proper use of communications...which will only apply to non-executives.
The securities space in the company has always been shady AF. These are from the Wachovia side of the world. There was a rumor at one time a few years ago that the board and execs were using whatsapp purposely so their communications couldn't be tracked.
When I joined many years ago things were far from perfect, but I've seen us continually get worse. And this cannot be blamed on the old leadership b/c none of them are around anymore. This is all the rejects from JPM and other companies + surely some bad apples in the securities space.
I'm disgusted by the company. It went from a respected brand being risk averse to flat out f**k ups. Can't wait to retire from this place.