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  • Janet Yellen's Last Act at the Federal Reserve: Punishing Wells Fargo

    From fortune.com

    Fed chair Janet Yellen will officially leave her post Saturday, but she’s not going quietly. On Friday evening, on Yellen’s last business day at the Federal Reserve, the central bank slapped new sanctions on Wells Fargo to punish it for a recent string of misbehavior, including a fake accounts scandal. Upbraiding Wells Fargo (WFC, -2.30%) for its chronic bad behavior, the Fed imposed a consent order that prohibits the bank from growing its assets any larger indefinitely, a severe handicap in the competitive financial industry. The Fed’s “cease and desist” order also forces Wells Fargo to replace another ... (full story)

For those who still think we live in a free financial world...... plse take note, read properly and understand!
I`d prefer they just close banks doing this kind of crap but... yea, money.
Closing the bank is worst. It simply just free up the resources so that the perpetrators can use it to start a new bank under a new name and new ownership to perform the same old crap. It is new bottle but same old wine. What the regulator is doing is to seal the old bottle of wine so that the resources is still locked in-place but it cannot grow as a punitive measure.
Quoting Hareii
Closing the bank is worst. It simply just free up the resources so that the perpetrators can use it to start a new bank under a new name and new ownership to perform the same old crap. It is new bottle but same old wine. What the regulator is doing is to seal the old bottle of wine so that the resources is still locked in-place but it cannot grow as a punitive measure.
I did not fully explain, close it, with penalties so big they lose everything, banking is a privilege, can`t manage it, bye.

Sounds like a socialist thing but would scare them into not doing bad things. Right now they just calculate the possible penalty... if they can make more profit, they do it.
Quoting alexandru987
I`d prefer they just close banks doing this kind of crap but... yea, money.
An individual would be in prison for this.
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  • Posted: Feb 2, 2018 11:56pm
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 5  /  Views: 3,119