Billionaire Munger Urges Warren: "Let Up" On Wells Fargo, "Practically Everyone" Was Doing It

Elizabeth Warren is having a very productive #Galentine's Day...

 

 

Not only did she invite undue embarrassment by clumsily "addressing" her questionable claims to Native American heritage, using Trump's fondness for the nickname "Pocahontas" to talk about "the real-life Pocahontas", she once again took aim at her favorite pinata, Wells Fargo, whose former CEO was famously sacked after she told him during a Congressional hearing that he "should resign."

Warren

As the Wall Street Journal reports, Warren posed almost a dozen questions about the bank’s questionable customer-remediation programs as it tries to make amends with the millions of American consumers who will, presumably, never consider depositing their  money with the San Francisco-based bank again after it opened fake accounts in their names, burdened them with auto insurance they didn't need and overcharged them for their mortgages.

And, if that wasn't bad enough, the bank is also under investigation for overcharging its corporate clients, too.

After challenging Sloan to answer the questions by Feb. 28, and to make good on his pledge to take care of the bank’s customers in the wake of widespread abuses. She also suggested - for the second time - that Sloan maybe isn't the best person to be running Wells Fargo (late last year, she called Sloan "incompetent" and said he "should be fired," during a Congressional hearing).

Wells Fargo’s efforts to compensate its customers have been “utterly inept,” the letter said. The bank "has caused thousands of people to spend valuable time and money trying to deal with a problem Wells Fargo created."

She also questioned what the bank would do for wronged customers who don't opt in by returning the mailers sent by the bank. She questioned by the bank chose the opt-in method instead of handing over the money it felt each wronged customer was due...

“What do you intend to do for the victims that do not ‘opt in’ to receive a refund?” Ms. Warren asked.

Having got all that offer her chest, 372?-year-old Charlie Munger had a few words for Ms. Warren and her regulatory cronies...

The Berkshire Hathaway billionaire declared that, despite all the indignities that Wells Fargo has foisted on its customers - after all, tens of thousands of auto-loan customers had their cars wrongfully repossessed - the bank's customers would still be "better off" in the long run for the bank finally having dealt with that pesky incentives system that it has blamed for all of its faults.

Munger

He added that regulators should "let up" on Wells Fargo - presumably referring to Warren's letter and the Fed's move to limit the size of the bank's balance sheet, depriving it of badly needed growth.

Though even that Fed announcement came with a caveat: Analysts - and the bank's CEO - said the Fed's sanctions "won't stop loan growth". In fact, analyst Dick Bove said the sanctions were "purely political".

"If you look at its balance sheet over the past couple of quarters, you will see that it hasn't grown," Bove told CNBC.

Munger spoke at the annual meeting of Daily Journal, the Los Angeles-based newspaper publisher he chairs:

“Of course, Wells Fargo had incentive systems that were too strong in the wrong direction, and of course they were too slow in reacting properly to bad news,” but “practically everyone” makes those kinds of mistakes, Munger said.

“Wells Fargo will end up better off for having made those mistakes,” he added. “I think it’s time for regulators to let up on Wells Fargo. They’ve learned.”

Of course, Munger's 94-year-old mutterings may just have something to do with the fact that Berkshire Hathaway is Wells Fargo's largest shareholder.
 

Comments

a Smudge by an… Bud Dry Wed, 02/14/2018 - 19:09 Permalink

Yeah hey 25000 people had cars repod. About the same get their credit hurt and miss the chance to buy a house. How many got evicted we wonder?

NO BIGGIE RIGHT PAL? GUYS LIKE YOU MAKE MISTAKES ALL THE TIME!

Pray that wherever you are when law and order breaks down it's noplace near me. Cause me and the boys are gonna come for you.

In reply to by Bud Dry

philipat a Smudge by an… Wed, 02/14/2018 - 19:19 Permalink

Not only proof positive of how disgusting BH (Ah shucks Warren and Charlie) has become but also of how corrupt and lacking in any integrity US business in general has become. Criticizing the Banks in any way has become tantamount to blasphemy?

And as further evidence, where did Fauxcohontas get her $10 Million wealth from? I'm not aware that she ever actually produced anything?

In reply to by a Smudge by an…

A_MacLaren CHoward Wed, 02/14/2018 - 22:49 Permalink

.. nothing but *bailed out* bottom feeding scum bags. *TIFIFY*

Time to exit this life, ya filthy parasite.

https://www.balloon-juice.com/2010/09/20/the-fucking-balls-on-these-peo…

"Bailouts for me, but no “handouts” for thee:

Charles Munger, the billionaire vice chairman of Berkshire Hathaway Inc., defended the U.S. financial-company rescues of 2008 and told students that people in economic distress should “suck it in and cope.”

“You should thank God” for bank bailouts, Munger said in a discussion at the University of Michigan on Sept. 14, according to a video posted on the Internet. “Now, if you talk about bailouts for everybody else, there comes a place where if you just start bailing out all the individuals instead of telling them to adapt, the culture dies.”

Bank rescues allowed the U.S. to avoid what could have been an “awful” downturn and will help the country as it deals with the housing slump, Munger, 86, said. He used the example of post-World War I Germany to explain how the bailouts under Presidents George W. Bush and Barack Obama were “absolutely required to save your civilization.”

In reply to by CHoward

truthalwayswinsout Wed, 02/14/2018 - 19:01 Permalink

Our Civil War 2 will be just like the French Revolution.

Does anyone see the resemblance of this asshole with the attitude of the French Nobles?

Close the bank down and take all the equity from the shareholders and put the management in jail.

That is the only solution.

Kickaha Wed, 02/14/2018 - 19:11 Permalink

Sorry, Charlie.  Warren, if anything, completely fumbled the ball on this one.

1.  Every human being at Wells Fargo in the chain of command down to the lowly tellers who engaged in identify theft should be charged with conspiracy to commit a felony and prosecuted to the full extent of the law.  After all of the convictions, the trial Judge can deal with the "good Nazi" defense of the lower level personnel when sentencing them.  The higher-ups should spend the rest of their lives in federal prison.  Anything less than that should be unacceptable.

2.  Nice of Munger to admit that all business defraud and steal from their customers, and therefore nobody in the business world should ever even be reprimanded for doing what everybody else is doing.

3.  That's why #1 is necessary, but only a good beginning.

We find ourselves on the way to Mad Max World mainly due to the total lack of ethics in our business community, made possible by people like Munger thinking that felonies committed by employees of corporations need never be punished.

the 300000000t… Wed, 02/14/2018 - 19:48 Permalink

Same old crusty curmudgeon that recently said that cryptocurrencies were "noxious poison". This guy hates everything that will help the average escape poverty joe and loves everything that will enslave the average joe

Yen Cross Wed, 02/14/2018 - 19:54 Permalink

  Go eat a bag of rotten donkey dicks Munger. 

  You should be indicted for supporting the illegal extortion of the American pubic, by the banks.