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Wells Fargo chief executive John Stumpf offered more apologies and excuses Thursday during his appearance before the House Financial Services Committee. REUTERS/Gary Cameron For the second time this month, Wells Fargo chief executive John Stumpf was greeted with a barrage of hostile questions from members of Congress, when he testified Thursday before the House Financial Services Committee about the bank's phony-account affair.
"Late Show" host Stephen Colbert on Wednesday detailed the fallout at San Francisco-based bank, Wells Fargo, which accrued $185 million in regulatory fines earlier this month after opening "roughly 1.5 million bank accounts and applied for 565,000 credit cards that may not have been authorized by customers," according to The New York Times . Wells CEO John G. Stumpf testified before the Senate Banking Committee last Tuesday and received an earful from Massachusetts Senator Elizabeth Warren.
Federal Reserve chair Janet Yellen was thrust into the election-year boxing ring during a congressional committee hearing on Wednesday, defending the central bank's regulatory role, taking and landing punches on Wells Fargo and other banks considered too big to fail, and addressing accusations of political conflicts of interest. At a house of representatives financial services committee hearing, Yellen also provided details on the changes the central bank is considering making to the annual stress tests it gives US banks.
Global governments are less likely to come to the rescue of banks than during 2008 financial crisis because the system is more stable, UBS Group AG Chairman Axel Weber said when asked about the prospects of Germany assisting Deutsche Bank AG. "Interventions in the future will only be driven by the need to stabilize the system and there will be no focus on single players," Weber, a former president of Germany's Bundesbank, said in a Bloomberg Television interview with Guy Johnson Wednesday.
The unwanted accounts created by Wells Fargo & Co. employees trying to hit aggressive sale goals have already forced the bank to provide some 100,000 customers with refunds averaging $25 for fees and other expenses.
Britain's HSBC is seeking to release billions of dollars of capital tied up in the United States without upsetting the country's politicians and regulators, senior sources at the bank said. A logo of HSBC is displayed outside a branch in the financial district in Hong Kong, China, June 2, 2015.
Wells Fargo CEO John Stumpf, is sworn in before testifying at a Senate Banking, Housing, and Urban Affairs hearing in Dirksen Building, Sept. 20, 2016, on the company's unauthorized accounts opened under customers' names.
Demonstrating the growing anxiety in Washington about Nicaragua, U.S. House of Representatives issued a scathing rebuke of Nicaraguan President Daniel Ortega's authoritarian push for power. Democrats and Republicans in the lower chamber unanimously supported a call, led by Miami Republican Rep. Ileana Ros-Lehtinen, Wednesday night to restrict the Ortega government's access to loans from international financial institutions unless it accepts international observers and takes others steps to promote democracy.
Facing bipartisan outrage from a Senate panel over accusations of employee misconduct, Well Fargo CEO John Stumpf appeared taken aback by the intensity of the verbal lashing. At a few points, he seemed flustered and stumbled a bit over his words.
Wells Fargo Chief Executive Officer John Stumpf prepares to testify on Capitol Hill in Washington, Tuesday, Sept. 20, 2016, before Senate Banking Committee.
One of the nation's key banking regulators told senators today that his agency is looking at all of the country's large and mid-sized banks to see if they're guilty of the same types of fraudulent practices uncovered at Wells Fargo. Examiners from the Office of the Comptroller of the Currency will review sales practices at the nation's banks to see if they might encourage illegal or dangerous behavior, including creating fake accounts in the name of meeting sales goals, Comptroller of the Currency Thomas Curry said at today's Senate Banking Comittee hearing.
The CEO of Wells Fargo faced accusations of fraud and calls for his resignation Tuesday from harshly critical senators at a hearing over allegations that bank employees opened millions of accounts customers didn't know about to meet aggressive sales quotas. Members of the Senate Banking Committee showed bipartisan outrage over the long-running conduct, unsatisfied by Chief Executive John Stumpf's show of contrition.
Wells Fargo CEO John Stumpf is set to appear before the Senate Banking Committee at 10 a.m. ET on Tuesday to answer question about fraudulent accounts opened by Wells employees. 2 million checking and credit card accounts were opened from 2011 onward by Wells Fargo employees without the knowledge of customers.
Wells Fargo chairman & CEO John Stumpf is interviewed by Maria Bartiromo during her "Mornings with Maria Bartiromo" program on the Fox Business Network, Dec. 7, 2015, in New York. Wells Fargo is in the spotlight after its employees allegedly created up to 2 million bank and credit card accounts, transferred customers' money without telling them and even created fake email addresses to sign people up for online banking in an effort to meet lofty sales goals.
Deutsche Bank is using a tailored financial structure to transfer the risk of losses to investors on a pool of corporate loans, according to people with knowledge of the matter. Deutsche Bank , facing investor concerns about its capital adequacy, plans to securitize more than $5.5 billion of corporate loans, in a move that's expected to reduce risks and bolster the lender's financial picture, people with knowledge of the matter said.
Lobbyists who've been bashing away at Washington's latest effort to regulate Wall Street bonuses may find the Wells Fargo & Co. scandal just grabbed the hammer from their hands.
Stocks were moderately lower Friday, pushed lower by the price of oil. Investors continue to remain on edge regarding the possibility of the Federal Reserve raising interest rates at their meeting next week.
Top executives at Wells Fargo have thus far managed to dodge any responsibility for their role in a yearslong scandal that last week earned it $185 million in fines, including a $100 million levy from the Consumer Financial Protection Bureau - the largest the watchdog agency has ever assessed. The bureau said that beginning in 2011, Wells Fargo employees routinely used legitimate customers' names to create phony credit, debit, and checking accounts - as many as 2 million in an effort to meet sales goals.
Shares in Deutsche Bank AG plunged Friday after the revelation that the U.S. Department of Justice is seeking $14 billion to settle civil claims over its handing of residential mortgage-backed securities. It's the latest blow for Germany's biggest bank by assets, which is in the middle of a painful transition as it tries to meet tougher regulatory requirements, cut costs and settle multiple legal investigations.
Wells Fargo & Co. was sued by customers in what may be the first of many lawsuits to come after disclosures that employees created unauthorized accounts to boost the bank's fees.