Wells Fargo to Pay $480 Million for Failing to Warn Shareholders of Investigations by Regulators

Wells Fargo to Pay $480 Million for Failing to Warn Shareholders of Investigations by Regulators

Wells Fargo has agreed to pay $480 million for a class action settlement in the Northern District of California in United States.  The US bank was investigated for creating almost 3.5 million fake customer accounts, and had failed to warn shareholders of investigations by US regulators.  Wells Fargos shareholders who had bought the shares between 2014 to 2016, were not informed of the investigations by US regulators till at least 6 months later, which would affect their buy or sell decisions.

“Wells Fargo to Pay $480 Million forFailing to Warn Shareholders of Investigations by Regulators”

In the class action settlement, Wells Fargo will pay $480 million  to shareholders of Wells Fargo who bought the stock between 2014 to 2016.  Wells Fargo denies the claims and allegations in the action and entered into the agreement in principle to avoid the cost and disruption of further litigation.

Source: Wells Fargo, Reuters, Bloomberg

 

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Wells Fargo Takes Back $75 Million From Ex-CEO and Top Executive

Wells Fargo Takes Back $75 Million From Ex-CEO and Top Executive

Wells Fargo is taking back $75 million from its former CEO and another top executive, blaming them for their roles in the bank’s fake accounts issue. The actions were taken as a result of the six month investigation by Wells Fargo’s independent directors. According to investigations, sales misconduct and “mass terminations” have taken place at Wells Fargo since at least 2002

“Together with actions from last fall, Wells Fargo senior executives are returning $180 million in pay.”

~ CNN

Together with actions from last fall, Wells Fargo senior executives are returning $180 million in pay. The board has said that this is the biggest clawback in financial services history.

Related Reports: CNN, New York Times

 

About Wells Fargo

In 1852, Henry Wells and William Fargo founded WellsFargo & Co. to serve the West. The new company offered banking (buying gold and selling paper bank drafts as good as gold) and express (rapid delivery of the gold and anything else valuable).

Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money. In the 1860s, it earned everlasting fame — and its corporate symbol — with the grand adventure of the overland stagecoach line.

Visit: Wells Fargo

 


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Tencent Surpass Wells Fargo to Become 10th Largest Company

Tencent Surpass Wells Fargo to Become 10th Largest Company

Tencent, the Chinese tech company has passed Wells Fargo to become the world’s tenth most valuable public company. The stock has rose 43% in the past year and more than 20% in 2017 alone to reach $279 billion. This has allowed it to pass Wells Fargo’s $275 billion market capitalization.

“Six of the top 10 companies by market value are now technology including the top four.”

~ Bloomberg

Tencent has joined the likes of Apple Inc and Alphabet Inc in the ranks of the world’s largest publicly traded companies. Six of the top 10 companies by market value are now technology including the top four.

Related Reports: Fortune, Bloomberg

 

About Tencent

Founded in November, 1998, Tencent is a leading provider of Internet value added services in China. Since its establishment, Tencent has maintained steady growth under its user-oriented operating strategies. On June 16, 2004, Tencent Holdings Limited (SEHK 700) went public on the main board of the Hong Kong Stock Exchange.

Visit: Tencent

 


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Industrial and Commercial Bank of China Overtakes Well Fargo as World’s Most Valuable Banking Brand

Industrial and Commercial Bank of China Overtakes Well Fargo as World’s Most Valuable Banking Brand

ICBC has overtaken Wells Fargo for the first time to become the world’s most valuable banking brand. According to the Top 500 Banking Brands 2017 Ranking by UK-based The Banker magazine, the brand value grew 32% year on year to US$47.8 billion. China’s total banking brand valuation has also increased by 25% to US$259.2 billion.

“ICBC has overtaken Wells Fargo for the first time to become the world’s most valuable banking brand.”

~ South China Morning Post

The ranking of the most valuable banking brands globally, in its 11th year, determines the net present value of a bank’s trademark and associated intellectual property, or its brand value. ICBC, China Construction Bank, Bank of China and Agricultural Bank of China also made it into the top 10 global banking brands.

Related Reports: South China Morning Post, The Banker 

 

About ICBC

Through its continuous endeavor and stable development, the Bank has developed into the top large listed bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank has its presence in six continents, and its overseas network has expanded to 41 countries and regions.The Bank provides comprehensive financial products and services to 5,090 thousand corporate customers and 465 million personal customers by virtue of the distribution channels consisting of 17,122 domestic institutions, 338 overseas institutions and 2,007 correspondent banks worldwide, as well as through its E-banking network comprising a range of Internet and telephone banking services and self-service banking centers, forming a diversified and internationalized operating structure focusing on commercial banking business and maintaining a leading position in the domestic market in the commercial banking sector.In 2014, the Bank was named the “Global Bank of the Year” by The Banker, ranked the first place among the Top 1000 World Banks by the Banker and the largest enterprise in the world among the Global 2000 listed by the US magazine Forbes for the second consecutive year.

Visit: ICBC

 


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Former Employees File Class Action Against Wells Fargo

Former Employees File Class Action Against Wells Fargo

Two former Wells Fargo & Co employees are requesting $2.6 billion or more for workers who tried to meet the sales quota ethically but were later forced to resign and fired. The lawsuit includes current employee and emphasises on those who followed the rules and were penalised for not meeting sales quotas.

“Two former Wells Fargo & Co employees are requesting $2.6 billion or more for workers who tried to meet the sales quota ethically but were later demoted, forced to resign and fired.”

~Reuters

The former employees have accused Wells Fargo managers often pressured them to meet 10 accounts per day targets and required progress reports daily and scolded workers who fell short of their targets.

Related Reports: Reuters, The Guardian 

 

About Wells Fargo

In 1852, Henry Wells and William Fargo founded WellsFargo & Co. to serve the West. The new company offered banking (buying gold and selling paper bank drafts as good as gold) and express (rapid delivery of the gold and anything else valuable).

Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money. In the 1860s, it earned everlasting fame — and its corporate symbol — with the grand adventure of the overland stagecoach line.

Visit: Wells Fargo

 


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Warren Buffett Loses $1.4 Billion on Wells Fargo Scandal

Warren Buffett Loses $1.4 Billion on Wells Fargo Scandal

Warren Buffett had $1.4 billion wiped out from his fortune after it was revealed that Wells Fargo employees had opened more than 2 million accounts without clients approval. Berkshire Hathaway, which is the biggest shareholder in Wells Fargo, dropped 2% therefore causing Warren Buffett fortune to drop by $1.4 billion.

“Tuesday’s decline came amid a worldwide equity sell off that wiped out $93 billion from the world’s 400 biggest fortunes since Friday.”

~Bloomberg

Tuesday’s decline came amid a worldwide equity sell off that wiped out $93 billion from the world’s 400 biggest fortunes since Friday. The billionaires lost $37.3 billion onTuesday as stocks and bonds both slumped, and oil prices sank.

Related Reports: Bloomberg, Daily Mail

 

About Berkshire Hathaway

Berkshire Hathaway is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company wholly owns GEICO, BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamond, Flight Safety International and NetJets and also owns 26% of the Kraft Heinz Company, an disclosed percentage of Mars, Incorporated and significant minority holdings in American Express, The Coca Cola Company, Wells Fargo, IBM and Restaurant Brands International.

Visit: Berkshire Hathaway

 


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Wells Fargo Fined US$185 Million Over Account Openings

Wells Fargo Fined US$185 Million Over Account Openings

Wells Fargo & Co was fined $185 million for illegal sales practices that included opening as many as two million deposit and credit card account without any customers knowledge. Employees issued debit cards without customers’ knowledge and assigned personal identification numbers without telling them. They  transferred funds from authorised customer accounts to temporarily funds one without customer permission. Some allegedly created fake email address to enrol unknowing consumers or people who don’t exist in online banking to hit sales goals.

“Wells Fargo & Co was fined $185 million for illegal sales practices that included opening as many as two million deposit and credit card account without any customers knowledge.”

~Wall Street Journal

As such, Wells Fargo said it terminated approximately 5300 employees and managers over a five year period for their involvement with the unauthorised accounts.

Related Reports: Wall Street Journal, Forbes

 

About Wells Fargo

In 1852, Henry Wells and William Fargo founded Wells, Fargo & Co. to serve the West. The new company offered banking (buying gold and selling paper bank drafts as good as gold) and express (rapid delivery of the gold and anything else valuable).

Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money. In the 1860s, it earned everlasting fame — and its corporate symbol — with the grand adventure of the overland stagecoach line.

Visit: Wells Fargo


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Citigroup Produced Lowest Revenues Since 2002

Citigroup Produced Lowest Revenues Since 2002

Citigroup produced its lowest second quarter revenues for the first time in at least 14 years. The bank generated revenues of $17.5 billion between April and June 2016, down 8% from the same period a year ago. This was the lowest second quarter figure since 2002, according to S&P Capital IQ data.

“The bank generated revenues of $17.5 billion between April and June, down 8% from the same period a year ago.”

~Financial Times

Citigroup chief executive has tried to make the bank narrower in focus by disposing assets around the world and cutting costs. Citigroup has slipped behind Wells Fargo in size, and it is now the fourth largest bank of assets.

Related Reports: Financial Times

 

About Citigroup Inc

Citigroup, Inc. is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. The company operates through two segments: Citicorp, consisting of Citi’s Global Consumer Banking businesses and Institutional Clients Group; and Citi Holdings, consisting of Brokerage and Asset Management, Local Consumer Lending and Special Asset Pool.

Visit: Citigroup

 

About Wells Fargo

In 1852, Henry Wells and William Fargo founded Wells, Fargo & Co. to serve the West. The new company offered banking (buying gold and selling paper bank drafts as good as gold) and express (rapid delivery of the gold and anything else valuable).

Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money. In the 1860s, it earned everlasting fame — and its corporate symbol — with the grand adventure of the overland stagecoach line.

Visit: Wells Fargo


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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