May 15, 2017

City of Philadelphia Files Lawsuit Against Wells Fargo for Discriminatory Lending

Discriminatory mortgage lending

Lawsuit Alleges the Bank Targeted Minority Borrowers with High-Cost Loans PHILADELPHIA-The City of Philadelphia today filed a federal lawsuit against Wells Fargo in the United States District Court for the Eastern District of Pennsylvania. The City’s Complaint asserts that Wells Fargo has engaged in discriminatory lending practices that target minority borrowers.

Read More
May 12, 2017

New Data Points to Wells Fargo Creating 3.5 Million Phony Accounts, 1.4 Million More Than It Previously Admitted

Bank account

A new court filing made as part of a forthcoming class action settlement with Wells Fargo Bank suggests the banking giant created 1.4 million more fraudulent accounts than it previously reported. This would bring the total number of unauthorized accounts to 3.5 million. The new data indicates the creation of these sham accounts dates as…

Read More
May 8, 2017

Jost on Justice, “Banks May Pay for Ravaging Minority Neighborhoods”

United States Supreme Court

In his latest “Jost on Justice” blog post, legal scholar Kenneth Jost offers his take on the Supreme Court’s recent decision in Bank of America v. Miami, noting that the city of Miami can now try to use the Fair Housing Act “to try to recover damages from BofA and Wells Fargo for financial losses…

Read More
May 6, 2017

Warren Buffett Highly Critical of Wells Fargo’s Approach to Accounts Scandal

Bank Investigations

Buffet says the banking giant was “totally wrong” in failing to act quickly to fix rampant abuses Wells Fargo’s largest stakeholder, Warren Buffet, has told investors at the annual meeting of his Berhskire Hathaway conglomerate that Wells mishandled its colossal fraudulent accounts scandal by failing to act quickly to stop the widespread abuses that significantly…

Read More
May 1, 2017

Supreme Court Clears The Way For LA and Other Cities to Sue Big Banks Over Foreclosure Crisis

United States Supreme Court Building

On Monday May 1, 2017, the U.S. Supreme Court solidified the reach of federal housing law by ruling that cities can sue major banks for discriminatory lending practices that caused enormous and pervasive harm to low-income neighborhoods during the 2008 recession. As noted by the Los Angeles Times, the decision “gives city leaders a potentially powerful…

Read More
April 24, 2017

Wells Fargo Increases Fake-Accounts Settlement Nearly 30% to $142 Million

Wells Fargo Consumer Fraud

Banking giant Wells Fargo, caught last year in a staggering scandal where its agents created as many as 2 million bogus accounts to steal improper revenue from its customers, has agreed to raise the settlement amount in the class action lawsuit over the unauthorized accounts to $142 million. Just three weeks earlier, the bank had…

Read More
April 13, 2017

Wells Fargo False Accounts Scandal Costs to Be Higher Than Expected, Says Wells Bank CFO

Bank

As reported by Bloomberg News, the costs incurred by Wells Fargo Bank in the wake of its huge false accounts scandal are going to be much higher than the bank previously reported, according to Chief Financial Officer John Shrewsberry. Shrewsberry expects consultant and lawyer fees to reach $70 to $80 million per quarter, a 30-40%…

Read More
April 7, 2017

Minneapolis Federal Reserve President Challenges JPMorgan’s Complaints About Regulatory Burdens

Big Banks

In an unusual move, the President of the Minneapolis Federal Reserve Bank has publicly criticized JP Morgan CEO Jamie Dimon for comments Dimon made regarding banking regulation. Minneapolis Federal Reserve President Neel Kashkari offered the criticism of JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon over what Kashkari feels are unrealistic views on core…

Read More
March 21, 2017

Top Fed Official Connects Wells Fargo’s Huge Customer Fraud Scandal to Similar Behaviors Underlying the Mortgage Crisis

Wells Fargo Consumer Fraud

“Like mortgage brokers in the early 2000s, it appears that job security depended almost exclusively on meeting targets, regardless of how those targets were met,” Fed Reserve Prez said in a London speech titled “Reforming Culture for the Long Term.” On March 21, 2017, William C. Dudley, President and CEO of the Federal Reserve Bank…

Read More
March 20, 2017

55% Drop in Credit Card Account Applications to Wells Fargo After False Accounts Scandal

Bank Misconduct

As reported by Bloomberg news, Wells Fargo & Co. has revealed that credit-card applications to the bank dropped a remarkable 55% in February 2017 as compared to one year earlier, the largest such decline since Wells Fargo’s fake accounts scandal broke last September. In addition, the bank noted that retail customers had opened 43% fewer…

Read More