“Wells Fargo knew that their unreasonable quotas were driving these unethical behaviors that were used to fraudulently increase their stock price and benefit the CEO at the expense of the low-level employees,” the bankers alleged in state court. “Although this policy was known to top executives of defendants, plaintiffs, as bankers, were blamed for harm to clients and retaliated against."
While Goldman is best known for creating the revolving door, where it either soaks up SEC "regulators", spawns central bankers and/or Treasury Secretaries like Hank Paulson, a new function was revealed today: providing sabbaticals for the spouses of presidential candidates. Case in point: Heidi Cruz, who left Goldman Sachs last year to help her husband Ted Cruz in his quest for the Republican presidential nomination, is returning to the bank in a newly created role in the Houston office.
With Rep. Hensarling threatening that the Wells Fargo debacle is "only in its 3rd inning," it appears today's Labor Department probe was enough to push CEO Stumpf over the edge as pressure mounts for his head. Effective today, John Stumpf has resign his position as the Federal Reserve Bank of San Francisco’s appointee to the Fed’s Federal Advisory Council.
That did not take long. Just hours after a CNN report suggested that Wells Fargo was retaliating, and firing, company whistleblowers who had spoken out against the company's illegal "account creation" practices (while blaming them of being "tardy"), moments ago Reuters reported that Senators have asked the Labor Department to investigate Wells Fargo for potential violations of Fair Labor Standards
"I’m now firmly in the camp that not only will the Fed not raise this year – they may not raise again for years. For they are not only “painted into a corner” via their own misdoings – they are chained there by Wall Street. They’ve missed the window..."
Wells Fargo admitted to firing 5,300 employees for engaging in illegal, fraudulent tactics. Now, CNN is reporting that it spoke with numerous former Wells Fargo workers around the country who tried to put a stop to these illegal tactics. Almost half a dozen workers who spoke with us say they paid dearly for trying to do the right thing: they were fired.
IRS Commissioner John Koskinen expressed "regret" to Congress on Wednesday for his agency’s past mistreatment of tea party groups, but ahead of a hearing before the House Judiciary Committee, the top IRS official said he has cooperated with congressional investigators "and does not deserve to be impeached." In his prepared remarks, Koskinen said that impeaching him would be "improper" adding that "it would create disincentives for many good people to serve."
One day after what was a rather disastrous hearing for Wells CEO John Stumpf, which culminated with a Senator telling the embattled chief executive he may want to consider going to prison, the bad news continued overnight when the bank that overtook Wells in the "biggest US bank by market cap" category, JPMorgan, downgraded Wells to Netural, cutting its price target from $53.50 to $48.00 as a result of "tough Senate hearings and mounting public scrutiny following the opening of fraudulent accounts."
Following today's dramatic grilling of Wells Fargo CEO John Stumpf in the Senate which culminated with Elizabeth Warren shouting at Stumpf that "You Should Resign, You Should Be Criminally Investigated"" moments ago Elizabeth Warren, and four Senate Democrats released answers from Wells Fargo to questions about the compensation of Carrie Tolstedt, as well as whether any of it will be clawed back.
"You should resign, you should give back the money you made while this scam was going on, and you should be criminally investigated by the Department of Justice and the Securities and Exchange Commission. The only way Wall Street will change is if executives face jail time when they preside over massive frauds."