Octopus Overlords

Wells Fargo & Co. fired more than 100 employees suspected of improperly collecting coronavirus relief funds, according to a person with knowledge of the situation.

The firm determined that the staffers defrauded the Small Business Administration “by making false representations in applying for coronavirus relief funds for themselves,” according to an internal memo reviewed by Bloomberg. The review focused on employees who tapped the Economic Injury Disaster Loan program, a key part of the government’s effort to prop up businesses during the pandemic.

LawBeefaroni wrote:Goldman Sachs, $2B fine, yada yada.


Looking like the real reason Blankfein left..

LawBeefaroni wrote: ↑Tue Oct 20, 2020 10:32 am Goldman Sachs, $2B fine, yada yada.


Looking like the real reason Blankfein left..

malchior wrote: ↑Tue Oct 20, 2020 11:11 am

LawBeefaroni wrote: ↑Tue Oct 20, 2020 10:32 am Goldman Sachs, $2B fine, yada yada.


Looking like the real reason Blankfein left..

Sure but the current CEO ran the group implicated. *Sigh*. Anyway, it's a big set of fines and far exceeded what they made so that's about as much "justice" as they'll see.

JPMorgan Chase is paying $200 million in fines to two U.S. banking regulators to settle charges that its Wall Street division allowed employees to use WhatsApp and other platforms to circumvent federal record-keeping laws.

The Securities and Exchange Commission said Friday that JPMorgan Securities agreed to pay $125 million after admitting to “widespread” record-keeping failures in recent years. The Commodity Futures Trading Commission also said Friday that it had fined the bank $75 million for allowing unapproved communications since at least 2015.

SEC officials who spoke to reporters Thursday evening said JPMorgan’s failure to preserve those offline conversations violated federal securities law and left the regulator blind to exchanges between the bank and its clients.

Federal law requires financial firms to keep meticulous records of electronic messages between brokers and clients so regulators can make sure those firms aren’t skirting anti-fraud or antitrust laws.
...
At JPMorgan, the practice of going offline to communicate was firm-wide, and even the managers and senior personnel responsible for compliance used their personal devices to communicate sensitive business matters, the SEC said.

malchior wrote: ↑Fri Dec 17, 2021 2:52 pm $200M. I bet they totally didn't make wau more than that in dirty deals in the last 6 years.

agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to checking accounts, mortgages and auto loans, with some of the misconduct happening as recently as this year.

The company was ordered to pay a record $1.7 billion civil penalty and more than $2 billion to customers with 16 million accounts, the CFPB said in a statement. The San Francisco-based bank said in a separate statement that many of the “required actions” tied to the settlement were already completed.

“The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes,” the agency said in its release. “Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.”

Isgrimnur wrote: ↑Tue Dec 20, 2022 3:15 pm CNBC

agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to checking accounts, mortgages and auto loans, with some of the misconduct happening as recently as this year.

The company was ordered to pay a record $1.7 billion civil penalty and more than $2 billion to customers with 16 million accounts, the CFPB said in a statement. The San Francisco-based bank said in a separate statement that many of the “required actions” tied to the settlement were already completed.

“The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes,” the agency said in its release. “Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.”

Furthermore, the bank said fourth-quarter expenses would include a $3.5 billion operating loss, or $2.8 billion after taxes, from the incremental costs of the CFPB civil penalty and customer remediation efforts, as well as other legal matters. The bank is still expected to post an overall profit when it reports in mid-January, according to a person with knowledge of the matter.

The large fourth-quarter expense indicates that Wells Fargo is setting aside funds for future settlements, Jefferies analyst Ken Usdin said Tuesday in a note.

$iljanus wrote: ↑Tue Dec 20, 2022 3:56 pm

Isgrimnur wrote: ↑Tue Dec 20, 2022 3:15 pm CNBC

agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to checking accounts, mortgages and auto loans, with some of the misconduct happening as recently as this year.

The company was ordered to pay a record $1.7 billion civil penalty and more than $2 billion to customers with 16 million accounts, the CFPB said in a statement. The San Francisco-based bank said in a separate statement that many of the “required actions” tied to the settlement were already completed.

“The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes,” the agency said in its release. “Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.”

”Jeeves, please fetch the piggy bank from the drawing room and send it to the constabulary!” “Very good sir.”

I’m not stressing too much about the hit to their bottom line…

Why do we call them “central banks” and not “apex creditors”?

Furthermore, the bank said fourth-quarter expenses would include a $3.5 billion operating loss, or $2.8 billion after taxes, from the incremental costs of the CFPB civil penalty and customer remediation efforts, as well as other legal matters. The bank is still expected to post an overall profit when it reports in mid-January, according to a person with knowledge of the matter.

malchior wrote: ↑Tue Dec 20, 2022 7:54 pm

Furthermore, the bank said fourth-quarter expenses would include a $3.5 billion operating loss, or $2.8 billion after taxes, from the incremental costs of the CFPB civil penalty and customer remediation efforts, as well as other legal matters. The bank is still expected to post an overall profit when it reports in mid-January, according to a person with knowledge of the matter.

Am I interpreting it right that the government pitches in on their settlement in the form of a tax break on the loss?

coopasonic wrote: ↑Wed Dec 21, 2022 9:10 am

malchior wrote: ↑Tue Dec 20, 2022 7:54 pm

Furthermore, the bank said fourth-quarter expenses would include a $3.5 billion operating loss, or $2.8 billion after taxes, from the incremental costs of the CFPB civil penalty and customer remediation efforts, as well as other legal matters. The bank is still expected to post an overall profit when it reports in mid-January, according to a person with knowledge of the matter.

Am I interpreting it right that the government pitches in on their settlement in the form of a tax break on the loss?

The settlement is a loss which offsets some gain so overall tax burden is reduced as a result of the reduced income.

U.S. regulators on Tuesday announced a combined $549 million in penalties against Wells Fargo
and a raft of smaller or non-U.S. firms that failed to maintain electronic records of employee communications.

The Securities and Exchange Commission disclosed charges and $289 million in fines against 11 firms for “widespread and longstanding failures” in record-keeping, while the Commodity Futures Trading Commission also said it fined four banks a total of $260 million for failing to maintain records required by the agency.

It was regulators’ latest effort to stamp out the pervasive use of secure messaging apps like Signal, Meta’s WhatsApp or Apple’s iMessage by Wall Street employees and managers. Starting in late 2021, the watchdogs secured settlements with bigger players including JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup. Fines related to the issue total more than $2 billion, according to the SEC and CFTC.
...
Wells Fargo, the fourth-biggest U.S. bank by assets and a relatively small player on Wall Street, racked up the most fines on Tuesday, with $200 million in penalties.

stessier wrote: ↑Thu Aug 10, 2023 11:55 am For anyone else reading along, I think LawBeef meant "big banks". Took me a while to puzzle out if there was some special form of bank I had not heard of.

LawBeefaroni wrote: ↑Thu Aug 10, 2023 12:01 pm

stessier wrote: ↑Thu Aug 10, 2023 11:55 am For anyone else reading along, I think LawBeef meant "big banks". Took me a while to puzzle out if there was some special form of bank I had not heard of.

Phew, yes. Stupid phone keyboard.