Bankers have occasionally been called locusts, but this is the first cockroach meme I’ve encountered.
John Chiang, California’s treasurer, imposed sanctions on Wells Fargo last year, taking away much of the state’s extremely valuable business from the disgraced bank. (Remember, ousted CEO Stumpf and his team were the same clowns that were so arrogant they wouldn’t conduct live earnings calls…) In an October 16 letter, Chiang notes some improvements, but extends the sanctions due to the bank’s growing “infestation of problems”. Per the letter (HT Wolf Street):
An Infestation of Problems
In 2016, when federal and local regulatory agencies flipped the light switch to
expose the millions of unauthorized deposit, credit card, debit card, and online banking
accounts, few would have suspected that this one cockroach portended a much more
aggressive and maleficent infestation. Yet, over the past 12 months the following have
come scurrying out of dark corners within Wells Fargo:
• The number of phony accounts has ballooned from an initial 2 million to now
• This past July, news broke that as many as 800,000 consumers were forced by
the bank to buy “lender-based” car insurance they did not need, tipping a
quarter of a million Wells Fargo customers into delinquency and triggering
25,000 vehicle repossessions.
• In August, a new and different auto insurance fraud scandal broke in which
the bank is being accused of failing to make refunds to consumers who paid
off their loans early.
• Also in August, Wells Fargo agreed to pay $108 million to settle a lawsuit
claiming it overcharged military veterans under a federal mortgage
• Recently, a federal judge in San Francisco refused to throw out a lawsuit
accusing Wells Fargo of systematically denying loans to immigrants who
came to the United States as children and who have been allowed to stay here.
The bad news has come with such regularity, I fear more Americans will become
de-sensitized to the bank’s pervasive exploitation of the public’s trust.
The problem with cockroaches, of course, is the constant vigilance needed to ensure their long-term eradication.