Wells Fargo – Wikipedia

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american multinational deposit and fiscal services company

A erstwhile Wachovia branch converted to Wells Fargo in the fall of 2011 in Durham, North Carolina American Express Co. early receipts ( 1853, 1869 )

stagecoach with Christmas gifts Wells Fargo Bank San Francisco Wells Fargo & Co. Express building circa 1860, Stockton, California Wells Fargo & Company is an american multinational fiscal services party with corporate headquarters in San Francisco, California, operational headquarter in Manhattan, [ 4 ] and managerial offices throughout the United States and internationally. [ 3 ] The company has operations in 35 countries with over 70 million customers globally. [ 3 ] It is considered a systemically important fiscal institution by the Financial Stability Board. The tauten ‘s primary coil subsidiary company is Wells Fargo Bank, N.A., a national depository financial institution chartered in Wilmington, Delaware, [ 3 ] which designates its main office in Sioux Falls, South Dakota. It is the fourth largest trust in the United States by sum assets and is one of the largest as ranked by bank deposits and market capitalization. Along with JPMorgan Chase, Bank of America, and Citigroup, Wells Fargo is one of the “ big Four Banks “ of the United States. [ 5 ] It has 8,050 branches and 13,000 ATMs. [ 3 ] It is one of the most valuable depository financial institution brands. [ 6 ] [ 7 ] Wells Fargo in its introduce form is a solution of a fusion between the original Wells Fargo & Company and Minneapolis -based Norwest pot in 1998. While Norwest was the nominal survivor, the merged company took the better-known Wells Fargo name and moved to Wells Fargo ‘s hub in San Francisco, while its bank subordinate merged with Wells Fargo ‘s Sioux Falls-based bank auxiliary. With the 2008 acquisition of Charlotte -based Wachovia, Wells Fargo became a coast-to-coast bank. Wells Fargo is ranked thirty-seventh on the Fortune 500 list of the largest companies in the US. [ 3 ] [ 8 ] The party has been the subject of respective investigations by regulators ; on February 2, 2018, account fraud by the deposit resulted in the Federal Reserve barring Wells Fargo from growing its closely $ 2 trillion-asset base any far until the caller fixed its internal problems to the satisfaction of the Federal Reserve. [ 9 ] In September 2021, Wells Fargo incurred far fines from the United States Justice Department charging deceitful behavior by the bank against foreign-exchange currency trade customers. [ 10 ] Bloomberg Businessweek reported in March 2022 that Wells Fargo was the only major lender in 2020 to reject more base refinance applications from Black applicants than it approved. [ 11 ]

history [edit ]

company Logo from 1996 until 2019 A late nineteenth century Wells Fargo Bank in Apache Junction, Arizona 1879 Wells Fargo stagecoach Wells Fargo deposit in Chinatown Houston, Texas Wells Fargo in Laredo, Texas Henry Wells and William G. Fargo, who had helped found American Express along with John Butterfield, formed Wells Fargo & Company in 1852 to provide “ express ” and banking services to California, which was growing quickly due to the California Gold Rush. Its earliest and most meaning tasks included transporting amber from the Philadelphia Mint and “ express ” mail delivery that was faster and less expensive than U.S. Mail. By the end of the California Gold Rush, Wells Fargo was a prevailing express and trust administration in the west, making large shipments of gold and delivering chain mail and supplies. It was besides the primary lender of Overland Mail Company, which ran a 2,757 mile road through the Southwest to San Francisco and was nicknamed the “ Butterfield Line ” after the company ‘s president John Butterfield. In March 1860, Wells Fargo gained control of Butterfield Overland Mail Company, after Congress failed to pass the annual mail office appropriation bill, thereby leaving the post office with no manner to pay for the Overland Mail Company ‘s services, and leaving Overland no manner to pay Wells Fargo. Wells Fargo then operated the western part of the Pony Express. [ 12 ]
The Salt Lake Daily Telegraph (Utah Territory) Wells, Fargo & Co. 1868 display ad from ( Utah Territory ) In 1866, the “ Grand consolidation ” connect Wells Fargo, Holladay, and Overland Mail stage lines under the Wells Fargo name. [ 13 ]
Wells Fargo 1870 ad In 1872, Lloyd Tevis, a supporter of the Central Pacific “ Big four-spot ” and holder of rights to operate an express serve over the Transcontinental Railroad, became president of the united states of the party after acquiring a boastfully stake, a position he held until 1892. [ 14 ] In 1892, John J. Valentine, Sr., a longtime Wells Fargo employee, was made president of the company. Valentine died in deep December 1901 and was succeeded as president by Dudley Evans on January 2, 1902. In 1905, Wells Fargo separated its bank and express operations, and Wells Fargo ‘s trust merged with the Nevada National Bank to form the Wells Fargo Nevada National Bank. [ 15 ] In 1918, as a wartime measure, the United States politics nationalized Wells Fargo ‘s express franchise into a federal agency known as the US Railway Express Agency ( REA ). The union government took control of the express company. [ 16 ] The bank began rebuilding but with a focus on commercial markets. After the war, the REA was privatized and cover overhaul until 1975. In 1923, Wells Fargo Nevada merged with the Union Trust Company to form the Wells Fargo Bank & Union Trust Company. [ 17 ] In 1929, Northwest Bancorporation was formed as a bank association. The company did well during the Great Depression ; during a Bank Holiday in March 1933, the company actually gained $ 2 million of deposits. [ 18 ] In 1954, Wells Fargo & Union Trust shortened its name to Wells Fargo Bank. In 1960, Wells Fargo merged with american english Trust Company to form the Wells Fargo Bank american english Trust Company. [ 19 ] In 1962, Wells Fargo American Trust shortened its name to Wells Fargo Bank. In 1968, Wells Fargo was converted to a federal deposit lease, becoming Wells Fargo Bank, N.A. Wells Fargo merges with Henry Trione ‘s Sonoma Mortgage in a $ 10.8 million stock remove, making Trione the largest stockholder in Wells Fargo until Warren Buffett and Walter Annenberg surpassed him. [ 20 ] In 1969, Wells Fargo & Company holding company was formed, with Wells Fargo Bank as its chief subordinate. [ 21 ] In 1982, Northwest Bancorporation acquired consumer finance firm Dial Finance, which was renamed Norwest Financial Service the be class. [ 22 ] In 1983, Northwest Bancorporation was renamed Norwest Corporation. In September 1983, a Wells Fargo armored hand truck storehouse in West Hartford, Connecticut was the victim of the White Eagle robbery, involving an insider who worked as an armored truck guard, in the largest US bank larceny to date, with $ 7.1 million stolen and two co-workers tied up. The robbery was carried out with the support of the government of Cuba and the cash was initially moved to Mexico City. [ 23 ] [ 24 ] In 1986, Wells Fargo acquired Crocker National Bank from Midland Bank. [ 25 ] [ 26 ] In 1987, Wells Fargo acquired the personal believe business of Bank of America. [ 27 ] In 1988, Wells Fargo acquired Barclays Bank of California from Barclays plc. [ 28 ] In 1991, Wells Fargo acquired 130 branches in California from Great American Bank for $ 491 million. [ 29 ] In May 1995, Wells Fargo became the first major US fiscal services firm to offer internet bank. [ 30 ] In 1996, Wells Fargo acquired First Interstate Bancorp for $ 11.6 billion. [ 31 ] Integration went ill as many executives left. [ 32 ] [ 33 ] In 1998, Wells Fargo Bank was acquired by Norwest Corporation of Minneapolis, with the combined caller assuming the Wells Fargo identify. [ 34 ] [ 35 ] In 2000, Wells Fargo Bank acquired National Bank of Alaska. [ 36 ] It besides acquired First Security Corporation. In late 2001, Wells Fargo acquired H.D. Vest Financial Services for $ 128 million, but sold it in 2015 for $ 580 million. [ 37 ] In June 2007, John Stumpf was named foreman executive military officer of the company and Richard Kovacevich remained as chair. [ 38 ] In 2007, Wells Fargo acquired Greater Bay Bancorp, which had $ 7.4 billion in assets, in a $ 1.5 billion transaction. [ 39 ] [ 40 ] [ 41 ] [ 42 ] It besides acquired Placer Sierra Bank. [ 43 ] It besides acquired CIT Group ‘s construction unit. [ 44 ] [ 45 ] In 2008, Wells Fargo acquired United Bancorporation of Wyoming. [ 46 ] In 2008, Wells Fargo acquired Century Bancshares of Texas. [ 47 ] On October 3, 2008, after Wachovia turned down an inferior offer from Citigroup, Wachovia agreed to be bought by Wells Fargo for about $ 14.8 billion in livestock. [ 48 ] On October 4, 2008, a New York state evaluate issued a impermanent injunction blocking the transaction from going advancing while the competing offer from Citigroup was sorted out. [ 49 ] Citigroup alleged that it had an exclusivity agreement with Wachovia that barred Wachovia from negotiating with other electric potential buyers. The injunction was overturned belated in the even on October 5, 2008, by New York submit appeals woo. [ 50 ] Citigroup and Wells Fargo then entered into negotiations brokered by the FDIC to reach an amicable solution to the blind alley. Those negotiations failed. Citigroup was unwilling to take on more risk than the $ 42 billion that would have been the cap under the previous FDIC-backed distribute ( with the FDIC incurring all losses over $ 42 billion ). Citigroup did not block the fusion, but sought damages of $ 60 billion for transgress of an alleged exclusivity agreement with Wachovia. [ 51 ] On October 28, 2008, Wells Fargo received $ 25 billion of funds via the Emergency Economic Stabilization Act in the form of a favored stock purchase by the United States Department of the Treasury. [ 52 ] [ 53 ] As a result of requirements of the politics stress tests, the caller raised $ 8.6 billion in capital in May 2009. [ 54 ] On December 23, 2009, Wells Fargo redeemed $ 25 billion of prefer stock issued to the United States Department of the Treasury. As separate of the redemption of the preferable stock, Wells Fargo besides paid accrue dividends of $ 131.9 million, bringing the total dividends paid to $ 1.441 billion since the prefer stock was issued in October 2008. [ 55 ] In April 2009, Wells Fargo acquired North Coast Surety Insurance Services. [ 56 ] In 2011, the company hired 25 investment bankers from Citadel LLC. [ 57 ] [ 58 ] [ 59 ] In April 2012, Wells Fargo acquired Merlin Securities. [ 60 ] [ 61 ] In December 2012, it was rebranded as Wells Fargo Prime Services. [ 62 ] In December 2012, Wells Fargo acquired a 35 % stake in The Rock Creek Group LP. The stake was increased to 65 % in 2014 but sold back to management in July 2018. [ 63 ] In 2015, Wells Fargo Rail acquired GE Capital Rail Services and merged in with First Union Rail. [ 64 ] In belated 2015, Wells Fargo acquired three GE units focused on occupation loans equipment finance. [ 65 ] In March 2017, Wells Fargo announced a design to offer smartphone-based transactions with mobile wallets including Wells Fargo Wallet, Android Pay and Samsung Pay. [ 66 ] In June 2018, Wells Fargo sold all 52 of its physical trust branch locations in Indiana, Michigan, and Ohio to Flagstar Bank. [ 67 ] [ 68 ] [ 69 ] In September 2018, Wells Fargo announced it would cut 26,450 jobs by 2020 to reduce costs by $ 4 billion. [ 70 ] [ 71 ] In March 2019, CEO Tim Sloan resigned amidst the Wells Fargo report fraud scandal and former general rede C. Allen Parker became interim CEO. [ 72 ] In July 2019, Principal Financial Group acquired the company ‘s Institutional Retirement & Trust business. [ 73 ] On September 27, 2019, Charles Scharf was announced as the firm ‘s new CEO. [ 74 ] In 2020, the company sold its student loanword portfolio. [ 75 ] [ 76 ] In May 2021, the company sold its canadian Direct Equipment Finance business to Toronto-Dominion Bank. [ 77 ] In 2021, the company sold its asset management division, Wells Fargo Asset Management ( WFAM ) to private equity firms GTCR and Reverence Capital Partners for $ 2.1 billion. [ 78 ] WFAM had $ 603 billion in assets under management as of December 31, 2020, [ 79 ] [ 80 ] of which 33 % was invested in money market funds. [ 81 ] WFAM was rebranded as Allspring Global Investments. [ 82 ] [ 83 ]

environmental record [edit ]

In 2009, Wells Fargo ranked 1st among banks and insurance companies, and 13th overall, in Newsweek Magazine ‘s inaugural address “ greens Rankings ” of the country ‘s 500 largest companies. [ 84 ] In 2013, the company was recognized by the EPA Center for Corporate Climate Leadership as a Climate Leadership Award winner, in the class “ Excellence in Greenhouse Gas Management ( Goal Setting Certificate ) ” ; this realization was for the company ‘s drive to reduce its absolute greenhouse boast emissions from its US operations by 35 % by 2020 versus 2008 levels. [ 85 ] In 2017, Wells Fargo ranked 182nd out of 500 in Newsweek Magazine ‘s “ green Rankings ” of the largest uracil companies ; [ 86 ] Newsweek ‘s 2020 list of “ America ‘s Most creditworthy Companies ” did not include Wells Fargo. [ 87 ]

Wells Fargo has provided more than $ 10 billion in finance for environmentally beneficial occupation opportunities, including supporting commercial-scale solar photovoltaic projects and utility-scale scent projects nationally. [ 88 ] In 2010, Wells Fargo launched what it believes to be the first blog among its diligence peers to report on its environmental stewardship and to solicit feedback and ideas from its stakeholders. [ 89 ]

Wells Fargo History Museum [edit ]

The ship’s company operates the Wells Fargo History Museum at 420 Montgomery Street, San Francisco. Displays include original stagecoaches, photograph, gold nuggets and mine artifacts, the Pony Express, cable equipment, and historic deposit artifacts. The museum besides has a giving workshop. [ 90 ] In January 2015, armed robbers in an SUV smashed through the museum ‘s glass doors and steal amber nuggets. [ 91 ] [ 92 ] [ 93 ] [ 94 ] The company previously operated early museums but those have since closed. [ 95 ]

Operations and services [edit ]

Map of Wells Fargo branches in August 2015

consumer Banking and Lending [edit ]

The Consumer Banking and Lending segment includes Regional Banking, Diversified Products, and Consumer Deposits groups, adenine well as Wells Fargo Customer Connection ( once Wells Fargo Phone Bank, Wachovia Direct Access, the National Business Banking Center, and Credit Card Customer Service ). Wells Fargo besides has about 2,000 stand-alone mortgage branches throughout the country. There are besides mini-branches located inside of early buildings, which are about entirely grocery store stores, that normally contain ATMs, basic deposit teller services, and an office for private meetings with customers. [ 3 ]

consumer lend [edit ]

Wells Fargo Home Mortgage is the second largest retail mortgage originator in the United States, originating one out of every four home loans. [ 96 ] Wells Fargo services $ 1.8 trillion in home mortgages, the one of the largest servicing portfolios in the US. [ 3 ]

equipment lending [edit ]

Wells Fargo has respective divisions, including Wells Fargo Rail, that finance and lease equipment to different types of companies. [ 3 ]

Wealth and Investment Management [edit ]

Wells Fargo offers investment products through its subsidiaries, Wells Fargo Investments, LLC, and Wells Fargo Advisors, LLC, ampere well as through national broker/dealer firms. The company besides serves high-net-worth individuals through its secret bank and class wealth group. Wells Fargo Advisors is the brokerage subsidiary company of Wells Fargo, located in St. Louis, Missouri. It is the third-largest brokerage firm in the United States as of the third gear quarter of 2010 with $ 1.1 trillion retail customer assets under management. [ 3 ] Wells Fargo Advisors was known as Wachovia Securities until May 1, 2009, when it was renamed following Wells Fargo ‘s learning of Wachovia Corporation .

Securities [edit ]

The Seagram build : base of Wells Fargo Securities ‘ New York offices and trading floors Wells Fargo Securities ( WFS ) is the investment bank division of Wells Fargo & Co. headquartered in Charlotte, with other U.S. offices in New York, Minneapolis, Boston, Houston, San Francisco, and Los Angeles and with external offices in London, Hong Kong, Singapore, and Tokyo. Wells Fargo Securities was established in 2009 after the acquisition of Wachovia Securities. It provides fusion and skill, high yield, leverage finance, fairness cover, individual placement, loanword syndication, risk management, and public finance services
A winder part of Wells Fargo ‘s commercial enterprise scheme is cross-selling, the practice of encouraging existing customers to buy extra banking services. [ 99 ] [ 100 ] Customers inquiring about their check account balance may be pitched mortgage deals and mortgage holders may be pitched credit card offers in an attack to increase the customer ‘s profitableness to the bank. [ 101 ] [ 102 ] other banks have attempted to emulate Wells Fargo ‘s cross-selling practices ( described by The Wall Street Journal as a hard sell proficiency ). [ 101 ]

International operations [edit ]

Wells Fargo has deposit services throughout the world, with abroad offices in Hong Kong, London, Dubai, Singapore, Tokyo, and Toronto. [ 103 ] [ 104 ] Back-offices are in India and the Philippines with more than 20,000 staff. [ 105 ] In 2010, hedge fund administrator Citco purchased the trust company operation of Wells Fargo in the Cayman Islands. [ 106 ]

charter [edit ]

Wells Fargo operates under Charter # 1, the first home trust charter issued in the United States. This lease was issued to First National Bank of Philadelphia on June 20, 1863, by the Office of the Comptroller of the Currency. [ 107 ] Traditionally, acquiring banks assume the earliest publish charter numeral. thus, the first lease passed from First National Bank of Philadelphia to Wells Fargo through its 2008 acquisition of Wachovia, which had inherited it through one of its many acquisitions .

Lawsuits, fines and controversies [edit ]

1981 MAPS Wells Fargo embezzlement scandal [edit ]

In 1981, it was discovered that a Wells Fargo assistant operations military officer, Lloyd Benjamin “ Ben ” Lewis, had perpetrated one of the largest embezzlements in history, through its Beverly Drive arm. During 1978 – 1981, Lewis had successfully written bogus debit and credit rating receipts to benefit boxing promoters Harold J. Smith ( né Ross Eugene Fields ) and Sam “ Sammie ” Marshall, president and president of the united states, respectively, of Muhammed Ali Professional Sports, Inc. ( MAPS ), of which Lewis was besides listed as a director ; Marshall, excessively, was a former employee of the same Wells Fargo branch as Lewis. In overindulgence of $ 300,000 was paid to Lewis, who pled guilty to embezzlement and conspiracy charges in 1981, and testified against his co-conspirators for a decreased five-year sentence. [ 108 ] ( Boxer Muhammed Ali had received a tip for the manipulation of his name, and had no other affair with the organization. [ 109 ] )

Higher costs charged to african-american and spanish american borrowers [edit ]

Illinois Attorney General Lisa Madigan filed suit against Wells Fargo on July 31, 2009, alleging that the bank steers african Americans and Hispanics into high-cost subprime loans. A Wells Fargo spokesman responded that “ The policies, systems, and controls we have in place – including in Illinois – ensure race is not a agent … ” [ 110 ] An affidavit filed in the font stated that loanword officers had referred to black mortgage-seekers as “ mud people, ” and the subprime loans as “ ghetto loans. ” [ 111 ] According to Beth Jacobson, a loanword officer at Wells Fargo interviewed for a report card in The New York Times, “ We just went right after them. Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches because it figured church leaders had a fortune of charm and could convince congregants to take out subprime loans. ” The reputation presented data from the city of Baltimore, where more than half the properties subject to foreclosure on a Wells Fargo loan from 2005 to 2008 nowadays stand vacant. And 71 percentage of those are in predominantly black neighborhoods. [ 111 ] Wells Fargo agreed to pay $ 125 million to subprime borrowers and $ 50 million in direct down payment aid in certain areas, for a total of $ 175 million. [ 112 ] [ 113 ] [ 114 ]

failure to monitor suspect money wash [edit ]

In a March 2010 agreement with US federal prosecutors, Wells Fargo acknowledged that between 2004 and 2007 Wachovia had failed to monitor and report suspected money wash by narcotics traffickers, including the cash used to buy four planes that shipped a total of 22 tons of cocaine into Mexico. [ 115 ]

overdraft fees [edit ]

In August 2010, Wells Fargo was fined by United States zone court evaluate William Alsup for overdraft practices designed to “ gouge ” consumers and “ profiteer ” at their expense, and for misleading consumers about how the bank processed transactions and assessed overdraft fees. [ 116 ] [ 117 ]

colonization and fines regarding mortgage serve practices [edit ]

On February 9, 2012, it was announced that the five largest mortgage servicers ( Ally Financial, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo ) agreed to a village with the US Federal Government and 49 states. [ 118 ] The settlement, known as the National Mortgage Settlement ( NMS ), required the servicers to provide about $ 26 billion in easing to distressed homeowners and in lead payments to the federal and country governments. This settlement sum makes the NMS the second largest civil colony in U.S. history, only trailing the Tobacco Master Settlement Agreement. [ 119 ] The five banks were besides required to comply with 305 newly mortgage serve standards. Oklahoma held out and agreed to settle with the banks individually. [ 120 ] On April 5, 2012, a union judge ordered Wells Fargo to pay $ 3.1 million in punitive damages over a single loanword, one of the largest fines for a bank ever for mortgaging service wrongdoing, after the bank improperly charged Michael Jones, a New Orleans homeowner, with $ 24,000 in mortgage fees, after the deposit misallocated payments to interest rather of star. Elizabeth Magner, a federal bankruptcy judge in the Eastern District of Louisiana, cited the bank ‘s behavior as “ highly condemnable ”, stating that Wells Fargo has taken advantage of borrowers who rely on the bank ‘s accurate calculations. [ 121 ] [ 122 ] The award was affirmed on appeal in 2013. [ 123 ] In May 2013, New York attorney-general Eric Schneiderman announced a lawsuit against Wells Fargo over alleged violations of the national mortgage colonization. Schneidermann claimed Wells Fargo had violated rules over giving fair and seasonably serve. [ 124 ] In 2015, a evaluator sided with Wells Fargo. [ 125 ]

SEC fine due to inadequate risk disclosures [edit ]

On August 14, 2012, Wells Fargo agreed to pay around $ 6.5 million to settle U.S. Securities and Exchange Commission ( SEC ) charges that in 2007 it sold hazardous mortgage-backed securities without in full realizing their dangers. [ 126 ]

lawsuit by FHA over loan cover [edit ]

In 2016, Wells Fargo agreed to pay $ 1.2 billion to settle allegations that the company violated the False Claims Act by underwriting over 100,000 Federal Housing Administration ( FHA ) backed loans when over half of the applicants did not qualify for the program. [ 127 ] [ 128 ] In October 2012, Wells Fargo was sued by United States Attorney Preet Bharara over questionable mortgage deals. [ 129 ]

lawsuit due to premium inflation on forced topographic point policy [edit ]

In April 2013, Wells Fargo settled a lawsuit with 24,000 Florida homeowners alongside insurance company QBE Insurance, in which Wells Fargo was accused of inflating premiums on forced-place insurance. [ 130 ]

lawsuit regarding excessive overdraft fees [edit ]

In May 2013, Wells Fargo paid $ 203 million to settle class-action litigation accusing the bank of imposing excessive overdraft fees on checking-account customers. [ 131 ]

rape of New York citation card laws [edit ]

In February 2015, Wells Fargo agreed to pay $ 4 million, including a $ 2 million penalty and $ 2 million in damages for illegally taking an interest in the homes of borrowers in rally for opening credit calling card accounts for the homeowners. [ 132 ]

Tax liability and lobby [edit ]

In December 2011, Public Campaign criticized Wells Fargo for spending $ 11 million on lobbying during 2008–2010, while increasing executive pay and laying off workers, while having no federal tax liability ascribable to losses from the Great Recession. [ 133 ] however, in 2013, the company paid $ 9.1 billion in income taxes. [ 134 ]

Prison industry investment [edit ]

The company has invested its clients ‘ funds in GEO Group, a multi-national provider of for-profit secret prisons. [ 135 ] By March 2012, its post had grown to more than 4.4 million shares worth $ 86.7 million. [ 136 ] As of November 2012, Wells Fargo divested 33 % of its holdings of GEO ‘s neckcloth, reducing its impale to 4.98 % of Geo Group ‘s coarse stock, below the brink of which it must disclose foster transactions. [ 137 ] [ 138 ]

discrimination against african Americans in hiring [edit ]

In August 2020, the company agreed to pay $ 7.8 million in back wages for allegedly discriminating against 34,193 african Americans in hiring for tellers, personal bankers, customer sales and serve representatives, and administrative confirm positions. The company agreed to provide jobs to 580 of the involve applicants. [ 139 ]

SEC colonization for insider trade case [edit ]

In May 2015, Gregory T. Bolan Jr., a stock analyst at Wells Fargo agreed to pay $ 75,000 to the U.S. Securities and Exchange Commission to settle allegations that he gave Joseph C. Ruggieri, a stock trader, insider information on probable ratings charges. Ruggieri was not convicted of any crime. [ 140 ] [ 141 ] [ 142 ]

Wells Fargo fake accounts scandal [edit ]

In September 2016, Wells Fargo was issued a unite total of $ 185 million in fines for opening over 1.5 million check and savings accounts and 500,000 credit cards on behalf of customers without their accept. The Consumer Financial Protection Bureau issued $ 100 million in fines, the largest in the agency ‘s five-year history, along with $ 50 million in fines from the City and County of Los Angeles, and $ 35 million in fines from the Office of Comptroller of the Currency. [ 143 ] The scandal was caused by an incentive-compensation course of study for employees to create modern accounts. It led to the displace of closely 5,300 employees and $ 5 million being set aside for customer refunds on fees for accounts the customers never wanted. [ 144 ] Carrie Tolstedt, who headed the department, retired in July 2016 and received $ 124.6 million in store, options, and restricted Wells Fargo shares as a retirement package. [ 145 ] [ 146 ] On October 12, 2016, John Stumpf, the then president and CEO, announced that he would be retiring amidst the scandals. President and Chief Operating Officer Timothy J. Sloan succeeded Stumpf, effective immediately. Following the scandal, applications for credit cards and checking accounts at the bank plummeted. [ 147 ] In response to the consequence, the Better Business Bureau dropped accreditation of the bank. [ 148 ] [ 149 ] Several states and cities ended business relations with the company. [ 150 ] An probe by the Wells Fargo board of directors, the report card of which was released in April 2017, primarily blamed Stumpf, who it said had not responded to tell of wrongdoing in the consumer services division, and Tolstedt, who was said to have wittingly set impossible sales goals and refused to respond when subordinates disagreed with them. Wells Fargo coined the phrase, “ Go for Gr-Eight ” – or, in other words, calculate to sell at least 8 products to every customer. The board chose to use a clawback clause in the retirement contracts of Stumpf and Tolstedt to recover $ 75 million worth of cash and stock from the early executives. [ 151 ] In February 2020, the party agreed to pay $ 3 billion to settle claims by the United States Department of Justice and the Securities and Exchange Commission. The settlement did not prevent individual employees from being targets of future litigation. [ 152 ] The Federal Reserve put a specify to Wells Fargo ‘s assets, as a leave of the scandal. In 2020, Wells Fargo sold $ 100 million in assets to stay under the limit. [ 153 ]

Racketeering lawsuit for mortgage appraisal overcharges [edit ]

In November 2016, Wells Fargo agreed to pay $ 50 million to settle allegations of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans. While banks are allowed to charge homeowners for such appraisals, Wells Fargo frequently charged homeowners $ 95 to $ 125 on appraisals for which the bank had been charged $ 50 or less. The plaintiffs had sought trio damages under the U.S. Racketeer Influenced and Corrupt Organizations Act on grounds that sending invoices and statements with fraudulently concealed fees constituted mail and wire fraud sufficient to allege racketeer. [ 154 ]

finance of Dakota Access Pipeline [edit ]

Wells Fargo is a lender on the Dakota Access Pipeline, a 1,172-mile-long ( 1,886 kilometer ) underground oil pipeline transport system in North Dakota. The grapevine has been controversial regarding its potential impact on the environment. [ 155 ] In February 2017, the city councils of Seattle, Washington and Davis, California voted to move $ 3 billion of deposits from the bank ascribable to its finance of the Dakota Access Pipeline adenine well as the Wells Fargo account fraud scandal. [ 156 ]

failure to comply with document security requirements [edit ]

In December 2016, the Financial Industry Regulatory Authority fined Wells Fargo $ 5.5 million for failing to store electronic documents in a “ write once, read many ” format, which makes it impossible to alter or destroy records after they are written. [ 157 ]

Doing business with the gun industry and NRA [edit ]

From December 2012 through February 2018, Wells Fargo reportedly helped two of the biggest firearms and ammunition companies obtain $ 431.1 million in loans. It besides handled banking for the National Rifle Association and provided bank accounts and a $ 28-million channel of credit. [ 158 ] In 2020, the company said that it is winding down its business with the National Rifle Association. [ 159 ]

discrimination against female workers [edit ]

In June 2018, about a twelve female Wells Fargo executives from the wealth management division met in Scottsdale, Arizona to discuss the minimal presence of women occupying senior roles within the company. The meet, dubbed “ the meet of 12 ”, represented the majority of the regional cope directors, of which 12 out of 45 were women. [ 160 ] Wells Fargo had previously been investigating reports of gender bias in the class in the months leading up to the meet. [ 161 ] The women reported that they had been turned down for top jobs despite their qualifications, and alternatively the roles were occupied by men. [ 161 ] There were besides complaints against ship’s company president of the united states Jay Welker, who is besides the head of the Wells Fargo wealth management division, due to his sexist statements regarding female employees. The female workers claimed that he called them “ girls ” and said that they “ should be at home taking care of their children. ” [ 161 ] [ 162 ]

Overselling car indemnity [edit ]

On June 10, 2019, Wells Fargo agreed to pay $ 385 million to settle a lawsuit accusing it of allegedly scamming millions of auto-loan customers into buying insurance they did not need from National General Insurance. [ 163 ] [ 164 ]

failure to Supervise Registered Representatives [edit ]

On August 28, 2020, Wells Fargo agreed to pay a finely of $ 350,000 deoxyadenosine monophosphate well as $ 10 million in damages payments to certain customers after the Financial Industry Regulatory Authority accused the company of failing to sanely supervise two of its register representatives that recommended that customers invest a high share of their assets in bad energy securities in 2014 and 2015. [ 165 ]

Steering customers to more expensive retirement accounts [edit ]

In April 2018, the United States Department of Labor launched a probe into whether Wells Fargo was pushing its customers into more expensive retirement plans ampere well as into retirement funds managed by Wells Fargo itself. [ 166 ] [ 167 ]

revision of documents [edit ]

In May 2018, the company discovered that its business bank group had improperly altered documents about business clients in 2017 and early on 2018. [ 168 ]

Executive recompense [edit ]

With CEO John Stumpf paid 473 times more than the median employee, Wells Fargo ranked numeral 33 among the S & P 500 companies for CEO—employee yield inequality. In October 2014, a Wells Fargo employee earning $ 15 per hour emailed the CEO—copying 200,000 early employees—asking that all employees be given a $ 10,000 per year recruit taken from a helping of annual corporate profits to address wage stagnation and income inequality. After being contacted by the media, Wells Fargo responded that all employees receive “ market competitive ” pay and benefits significantly above US federal minimums. [ 169 ] [ 170 ] pursuant to Section 953 ( b ) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies are required to disclose ( 1 ) the median total annual compensation of all employees other than the CEO and ( 2 ) the proportion of the CEO ‘s annual sum compensation to that of the median employee. [ 171 ]
Wells Fargo & Company reported sum CO2e emissions ( Direct + Indirect ) for the twelve months ending 31 December 2020 at 776 Kt ( -87 /-10.1 % y-o-y ). [ 172 ] There has been a consistent declining swerve in reported emissions since 2015 .

Wells Fargo’s annual Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
1,185[173] 1,061[174] 934[175] 929[176] 863[177] 776[172]

In popular culture [edit ]

Wells Fargo stagecoaches are mentioned in the sung “ The Deadwood Stage ( Whip-Crack-Away ! ) “ in the 1953 film Calamity Jane performed by Doris Day : “ With a fancy cargo, care of Wells and Fargo, Illinois – boy ! “. [ 178 ]. Wells Fargo is besides shown as the rescue service bringing the instruments for the town band in the 1962 movie The Music Man .

jacob’s ladder [edit ]

On March 2, 2022, Wells Fargo announced $ 1 mln contribution to the American Red Cross that will be used for ukrainian refugees fleeing from the russian invasion. [ 179 ] In April 2022, The Wells Fargo foundation announced its assurance of $ 210 million toward racial equity in homeownership. With $ 60 million of the contribution awarded in Wealth Opportunities Restored through Homeownership ( WORTH ) grants which will run until 2025. additionally, $ 150 million will be committed to lower mortgage rates and reducing the refinance costs to aid minority homeowners. [ 180 ]

See besides [edit ]

References [edit ]

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