47.51 -0.06 (-0.13%)
After hours: 7:10PM EST
|Bid||47.48 x 3200|
|Ask||47.50 x 3200|
|Day's Range||47.18 - 48.21|
|52 Week Range||43.34 - 54.75|
|Beta (5Y Monthly)||1.10|
|PE Ratio (TTM)||11.75|
|Earnings Date||Apr 13, 2020|
|Forward Dividend & Yield||2.04 (4.23%)|
|Ex-Dividend Date||Nov 06, 2019|
|1y Target Est||51.09|
Airplane manufacturer Boeing Co is in talks with banks to obtain up to US$12bn in loans, a move that comes as financial pressures mount on a company reeling from a production halt on its 737 MAX aircraft, sources said. Citigroup is leading the new transaction, which opens at 100bp over Libor, in line with Boeing's current borrowing costs. The loan pays a 9bp fee before the company draws down on the funds.
Consumer groups had worried that the Trump administration's pick to lead the Office of the Comptroller of the Currency (OCC), Joseph Otting, would do little to change its reputation for leniency. A former chief executive of California's OneWest Bank, Otting as comptroller has referred to lenders as his "customers" and pursued rule changes pushed for by bank lobbyists. One person with knowledge of the matter said Wells Fargo's failure to swiftly fix systemic misconduct has angered Otting, precisely because he spent decades as a banker and felt he was held to high standards.
The Department of Justice is looking into whether executives withheld details about fake accounts to the Wells Fargo board of directors and the Office of the Comptroller of the Currency, the lead regulator for national banks, Reuters has reported. Consent orders: Wells Fargo is currently operating under roughly 14 consent orders with various regulators including the OCC, SEC, and the Consumer Financial Protection Bureau.
One way in which the sales-practices scandal that shook Wells Fargo & Co. in 2016 was worse than you think.
The US Office of the Comptroller of the Currency has announced heavy penalties against former bosses of Wells Fargo over a fake accounts scandal. The reversal of fortune has been painful since the controversy erupted in 2016. As new chief executive Charlie Scharf recently noted, Wells Fargo had emerged from the 2008 financial crisis “as the most valuable and most respected bank in the US”.
(Bloomberg) -- Seven years ago, Wells Fargo & Co.’s security chief opened a few “undercover” bank accounts to aid law enforcement. Within 24 hours, two employees tacked on debit cards, claiming they each personally spoke to the new -- fictional -- customers.“All I could do was shake my head,” the security chief told a senior executive in an email.The exchange was among dozens of behind-the-scenes moments of frustration and fear cited by U.S. regulators Thursday seeking to impose a record $59 million in fines on the bank’s former leaders for allowing sales abuses to pervade its nationwide branch network. Three settled, including ex-Chief Executive Officer John Stumpf, who agreed to be banned from the industry and pay a $17.5 million penalty -- an unprecedented sanction of a former U.S. bank leader. Five others are fighting the case.The bank’s aggressive targets for opening new accounts “caused hundreds of thousands of employees to engage in numerous types of sales practices misconduct,” the Office of the Comptroller of the Currency wrote in its complaint against them.The bank’s staff confronted a stark dilemma every day for 14 years, according to the regulator: “They could engage in sales practices misconduct -- much of which was illegal -- to meet their goals, or they could struggle to meet their goals and face adverse consequences, including losing their jobs.”The OCC faulted Stumpf for failing “to respond to numerous warning signs.” Former chief administrative officer Hope Hardison and onetime risk chief Michael Loughlin also resolved its claims.‘Forced to Walk’The agency is looking to levy the heftiest penalty -- $25 million -- against former community banking chief Carrie Tolstedt. She and four other former executives -- general counsel Jim Strother, chief auditor David Julian, audit director Paul McLinko and community banking risk officer Claudia Russ Anderson -- are facing a public hearing before an administrative law judge. The regulator said it could decide to increase the civil penalties based on the evidence presented.An attorney for Russ Anderson didn’t respond to messages seeking comment. Representatives for the other four said the executives acted with integrity, sought to tackle problems and expect to clear their names once all of the facts are heard.The OCC laced its 100-page complaint against them with emails, internal memos and testimony, arguing that for years Wells Fargo’s management refused to ease off sales targets despite repeated warnings about abuses.“The bank had better tools and systems to detect employees who did not meet unreasonable sales goals than it did to catch employees” engaging in misconduct, the regulator said. Some were allegedly told that if they missed targets, they would be “transferred to a store where someone had been shot and killed” and if they did not make enough appointments they would be “forced to walk out in the hot sun around the block.”Gulf War StressWorkers warned bosses about the fallout of that pressure in impassioned memos.“The termination ax is suspended over our head one way or another,” an employee wrote in a complaint sent to Tolstedt’s office in 2012, according to the OCC. “Meet unreasonable goals or you will be terminated, cheat to meet the unreasonable goals and you will be terminated when caught.”“I was in the 1991 Gulf War,” another employee wrote to Stumpf’s office. “This is sad and hard for me to say, but I had less stress in the 1991 Gulf War than working for Wells Fargo.”Senior executives also heard about the trouble directly from affected customers. A former operating committee member’s wife received two debit cards in the mail that she hadn’t requested. The executive raised it with Tolstedt, who eventually told him to stop telling the story “because she thought it reflected poorly on the community bank,” the OCC wrote.The scandal erupted in September 2016, setting off a national furor. It prompted congressional hearings, Stumpf’s exit and more probes, including still-pending investigations by the Justice Department and Securities and Exchange Commission. The ire has spanned the political spectrum from Democratic Senator Elizabeth Warren to Republican President Donald Trump.The OCC previously seized unusual control over hiring and firing the bank’s leaders and, with other regulators, inflicted billions of dollars in fines and other costs on the company. But Thursday’s case was the agency’s first targeting executives over the matter. And it contrasts with the years after the financial crisis, when no CEO of a major U.S. bank was punished for faulty mortgage-bond sales and home foreclosures that upended the economy and hurt millions of Americans.Stumpf’s successor, Tim Sloan, stepped down last year after lawmakers and the agency expressed frustration with the pace of the bank’s cleanup. His replacement, Charlie Scharf, took over in October.“We are reviewing today’s filings and will determine what, if any, further action by the company is appropriate with respect to any of the named individuals,” Scharf told employees on Thursday, noting the bank won’t make any remaining compensation payments to the individuals during the review. “This was inexcusable. Our customers and you all deserved more from the leadership of this company.”To contact the reporters on this story: Hannah Levitt in New York at firstname.lastname@example.org;Jesse Hamilton in Washington at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, ;Jesse Westbrook at email@example.com, David Scheer, Dan ReichlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
John Stumpf’s settlement was one of several actions the Office of the Comptroller of the Currency announced Thursday against former Wells Fargo executives over customer-account misconduct.
Wells Fargo former Chairman and CEO John Stumpf agreed to a lifetime ban from the banking industry over the bank's 2016 sales-practices scandal.
The Office of the Comptroller of the Currency issued a notice of charges against five former Wells Fargo & Co. executives on Thursday, for their role in a sales-practices scandal that led to the creation of millions of fake bank accounts. "The actions announced by the OCC today reinforce the agency's expectations that management and employees of national banks and federal savings associations provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations," Comptroller of the Currency Joseph Otting said in a statement. The agency is seeking to fine Carrie Tolstedt, former head of the bank's retail operations, $25 million in the form of a civil money penalty (CMP) and to issue her a lifetime prohibition order from participating in the banking industry. It is seeking to fine Claudia Russ Anderson, former community bank group risk officer, $5 million and issue her a prohibition order. It is seeking to fine James Strother, former general counsel, $5 million along with a personal cease & desist order (PC&D). A PC&D requires the individual to take remedial actions or refrain from certain conduct in future dealings in the banking industry. It is seeking to fine former Chief Auditor David Julian $2 million with a PC&D order, to fine former Executive Audit Director Paul McLinko $500,000 with a PC&D order. The agency said it has also issued a prohibition order and a $17.5 million CMP against former Chairman and CEO John Stumpf; a PC&D order and a $2.25 million CMP against the bank's former Chief Administrative Officer and Director of Corporate Human Resources Hope Hardison; and a PC&D order and assessment of a $1.25 million CMP against former Chief Risk Officer Michael Loughlin for their roles in the bank's sales practices misconduct. Wells Fargo responded by saying it will not make any further compensation payments to the individuals named, while it reviews the filings. Shares were slightly lower Thursday and have fallen 3.6% in the last 12 months, while the S&P 500 has gained 26%.
A U.S. bank regulator announced Thursday that several senior former Wells Fargo executives face potential lifetime industry bans and millions of dollars in civil penalties for their roles in the bank's long-running sales practices scandal. The Office of the Comptroller of the Currency (OCC) announced civil charges against five former senior bank executives and settlements of charges with three other senior bank officials, including former Chief Executive John Stumpf.
Wells Fargo & Co's U.S. regulator on Thursday announced it had banned former Chief Executive John Stumpf from the banking industry and charged him and seven other former executives combined more than $58 million in civil penalties for their roles in the bank's multi-year sales practices scandal. The action by the Office of the Comptroller of the Currency (OCC) marks a rare example of senior executives being held personally accountable for failing to put a stop to misconduct at their bank. It also broke new ground for the regulator, which forced Stumpf to pay $17.5 million (13.3 million pounds) to settle the charges against him - the largest ever penalty it has secured from an individual.
(Bloomberg) -- Wells Fargo & Co.’s main regulator is preparing civil charges against former managers related to their roles in its retail banking scandals, people familiar with the matter said.The Office of the Comptroller of the Currency has been readying so-called notices of charges against as many as 10 individuals, and may reach settlements with some, the people said, asking not to be identified because the discussions aren’t public. Carrie Tolstedt, who ran Wells Fargo’s sprawling community bank, former chief administrative officer Hope Hardison and onetime chief auditor David Julian may be among those facing the charges, the people said.An announcement hasn’t been finalized and negotiations are ongoing, the people said. An OCC spokesman declined to comment. Representatives for Tolstedt, Hardison and Julian declined to comment.The breadth of managers swept up in the OCC’s probe shows regulators are seeking to hold individuals accountable in addition to the company over one of the financial industry’s largest scandals since the 2008 crisis. Wells Fargo has been hit with an unprecedented series of punishments, including a Federal Reserve-imposed cap on assets and an order giving the OCC the right to remove some of the bank’s executives or board members.Together, the actions against Wells Fargo represent a harsher era for those accused of wrongdoing in the banking industry when compared with the widely criticized environment following the financial crisis. Cases the OCC brings against former Wells Fargo leaders would represent a rare example of individual accountability at the highest levels in bank wrongdoing. Even after the billions of dollars in fines the firms paid following the crisis, very few individuals faced such actions. Notices of charges can lead to monetary penalties and bans from working in the industry.The OCC’s move would cast another spotlight on the bank’s misconduct as new Chief Executive Officer Charlie Scharf tries to move the company beyond three years of legal and regulatory fallout that have cost billions of dollars and claimed two CEOs. The Department of Justice and the Securities and Exchange Commission also have been investigating.The scandals erupted in 2016 with the revelation that employees may have opened millions of bogus accounts to meet sales goals. Issues soon emerged in other divisions, prompting a flurry of probes and settlements. The Justice Department staff also have been scrutinizing the actions of individual executives, people familiar with the investigation have said. A spokesman for the agency declined to comment.Wells Fargo has repeatedly come under pressure from the OCC in recent years, as the regulator imposed a $500 million penalty, helped to remove Hardison and Julian from their posts in 2018, and issued a rebuke of the bank’s progress under former CEO Tim Sloan during a March hearing before Congress. Wells Fargo announced Sloan’s retirement days later. The board hired Scharf after a six-month search for an external candidate that was subject to the OCC’s sign-off.Wells Fargo’s legal troubles have weighed on its shares, which have sat out the 53% advance in the KBW Bank Index since the scandals broke in September 2016. The stock is down almost 10% this year, the worst performance in the index. Among 32 analysts tracked by Bloomberg, only six recommend buying the bank’s shares.(Updates with regulatory history beginning in fourth paragraph.)\--With assistance from David Scheer.To contact the reporter on this story: Hannah Levitt in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Daniel Taub, Steve DicksonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.