Sign Ohio Banking Permission Slip Now

Industry sign banking ohio permission slip now

now let's get into the legal side of things here so first of all we go into the you know the wayback machine as they call it and we look back at 2014 we can see their vision statement so they say things like if they bring all of their financial services to one trusted provider that they know well right so they're talking about the customer coming to them because they're gonna be the trusted ones and you know their own customers you know give about half of their financial business to other to our competitors you know you can see that Wells Fargo is so bothered by that their customers are going somewhere else so nevertheless they do mention that our vision is not only do with transit to do with transactions or pushing products or getting bigger for the sake of getting bigger you know on one hand it's good you know that they say that and it means like oh yeah well we're not worried about you know specifically going after people and our competitors and getting more business but it's a little scary that they had to point that out that clearly that is you know a very negative connotation of everything that's going on so you know we're gonna see now that it sounds like they almost were going in that direction well we already see this Forbes article from 2012 so from a long time ago the art of the cross sell you know and forget see this is a major issue they mentioned that they do it better than anyone well maybe not legally because we see this article from CNN business the US government finds Wells Fargo three billion dollars because of the fake account sandals okay that's a three billion dollar fine because they made millions of fake accounts just to reach and this is the key they're the people the staff at the bank we're trying to reach some sort of incentive right if they get a certain amount of people signed up for whatever it is a mortgage or for another bank account they will you know get a bonus and so all these staff were pushing all of these new things new bank accounts and people didn't take them well maybe they would Forge people's signatures and they would get people to sign up anyway now as part of the deal Wells Fargo admitted that between 2002 and 2016 they falsified these but bank records and that harm credit ratings of custom right because people weren't paying fees on bank accounts they didn't even know existed and the unlawfully misused their personal information and wrongfully collected millions of dollars and fees and interest based over all of this so really really scary stuff right I I would be very nervous if my bank did that to me so that is going to be a really bad tarnish in terms of the reputation of Wells Fargo and once again this is gonna be a really bad thing because the Federal Reserve has put an acid cap right but bank is not allowed to grow their loans for example because the Federal Reserve is scared what are they doing to their customers are they gonna be responsible and this is a punishment as well as a check and balance right the bank can't grow and so the bank is gonna have to get on the up-and-up and they can't grow so that if they do another one of these failures there will be fewer people who are affected or are certainly not more people who are affected hopefully now there is going to be a criminal investigation however it is deferred prosecution right and this means they have to have continued cooperation with the FIR with further government investigations now was that mean deferred prosecution well that pretty much means that they're not going to do anything criminal investigation right now they will at a later date or maybe it'll be dropped I suppose that's possible there's a part of me that doesn't expect it to be dropped just because of how reckless and negligent this was but you know it's good it depends on what you know the these government investigations turn up now there was also something else they mentioned the Labor Department which launched a probe in 2016 into allegations that Wells Fargo was committing wage theft and retaliate against whistleblowers which is really a bad sign seeing as though you know you'd want whistleblowers in this situation with all these fake bank accounts and yet Wells Fargo was attacking them so not great and not great for the future because if employees know that they're going to be attacked for all of these you know negative things that they're revealing well then you know other people might not come forward and Wells Fargo might get further into the hole with bad incentive plans or bad whatever it might be now there's also this lawsuit ETM access fee litigation so this is against Wells Fargo Bank and Visa and MasterCard and several other and pretty much it has to do with the fact that the ATM operator charges an excess fee on visa mastercard transactions but on other networks you know this will violate the antitrust rule because the transaction charges are different amounts depending on the network now this is this case went all the way up to the Supreme Court and it was improvidently granted and these cases returned to the district court for further proceedings that means that the Supreme Court pretty much accepted or it got all the way up to the Supreme Court and the Supreme Court pretty much looked at and said hey this is not something that we should be deciding this should go back down we wrongfully kind of brought it up to the next stage this is still going through now from my perspective this is actually not as scary as some of the other lawsuits why because it's not specifically against Wells Fargo it's about everyone it's about Visa MasterCard all these banks who are all kind of involved and you know it's not great that Wells Fargo has something else bad on their record and there's gonna be quite a bit but nevertheless it kind of doesn't scare me as much just simply because it's kind of the whole system it's not specifically Wells Fargo maybe I'm wrong about that now there's this other issue that they had historical practices practices associated with freezing people's account and there was because they suspected fraudulent activity and so you know was this done correctly was it done incorrectly were there really people doing fraudulent things on the accounts yes if if everything was done on the up-and-up and they were really good at detecting fraud this would be great however obviously there was a lot of customers who were harmed because of this because of their accounts being closed or being can't or being cut or whatever so they're obviously looking into that which is not great now there's also this whole issue of fee calculations because you've had people you know having fees that were wrong and with these accounts and specifically in the wealth management and the thing is there's both over charges and under charges to customers so on one hand it's not you know willfully you know doing something negative to the client like we saw before when they were the fake accounts or hopefully there's nothing willful but nevertheless it's really not good to have just negligence when it comes to charging people fees on their money people don't like that especially in wealth management when people are trying to make more money specifically with the bank and you know they're getting feet with fees well I suppose over charges are bad under charges I suppose are good but no one wants to feel like you know they're being charged the wrong amount I think now in terms of foreign exchange business while there was pricings inconsistent with commitments made to those customers so once again some sort of cheating is a negligent is it on purpose well there you have to look into this is just another problem right now also in low-income housing tax credits right so they have these income housing tax credits that they're going to be analyzed which have to do with financing low-income housing developments and if you saw if you remember from last video do watch it we mentioned that in terms of the commercial banking section you know there's a three billion dollar income tax fee compared to 1.4 billion dollars you know there's these massive movements in terms of tax specifically related to low-income housing and renewable energy I don't know how much each one plays but obviously the federal government is a little bit nervous that maybe they took too large of a tax credit so that's not great now there's this other issue here that we see with patent infringement for mobile deposits once again this is not great but it also doesn't scare me as much why because this is not related to the customer specifically this is just this is a problem obviously for the bank it doesn't look like a massive amount of money we're talking about 200 million dollars but nevertheless it doesn't really matter even it was a larger amount of money yes it's not great but to my mind it's really the tarnished reputation of Wells Fargo now there's been quite a few things going on here but this one this type of thing less bothersome to me now here's another interesting thing you know the bank pretty much self-identified that there were foreign banks were using software from Wells Fargo to do transactions with countries or entities that were prohibited by the United States specifically the Office of Foreign Assets Control and so they came forward they did voluntary self disclosures I think that's good once again this is not gonna help with you know the customer tarnished reputation but this does actually I think I have a positive sign in terms of the lid in terms of the regulation and like the government over say you know here's a bank that now is coming forward with some of this stuff and so I think that's positive now we have this I don't know how to pronounce it I apologize but this seminal a tribe which who are being charged excess fees so once again excess fees and it has to do with a miners trust that you know they're claiming the bank failed to invest properly and you know this was a tribe lawsuit against the bank however the tribe was now removed as party to the case and pretty much the trial is scheduled for April 2020 well this effect a massive amount of customers know once again that reputation it's not a great look now when we talk about a wholesale banging and sent so they did impro prea inappropriate conduct in connection with collection of beneficial ownership information what does that mean I'm not entirely sure this is this is very complicated but pretty much how they look at companies and who owns stakes and who are you know the real source of benefit in terms of beneficial ownership they have more control over these companies and so pretty much the bank was not looking at these things properly in terms of analyzing risk and I suppose other things as well so that's not great once again not gonna affect their tarnished with customers but this might affect their tarnish you know their their reputation with the commercial side so not great that they're gonna kind of getting hit on multiple fronts here now here we have another issue from CNN business that's not mention that I didn't see it in the 10k well apparently there was missed deadlines for promised interest rates you know when mortgages get renewed for example and the delays were specifically Wells Fargo now of course this is what the article is claiming I'm not entirely sure about this this is obviously complicated I'm sure and I'm sure there's Fault on both sides if I had to guess now it has to do with a hundred and ten thousand customers Wells Fargo pretty much said that they believe that they they're gonna pay back these people who believe you know that's the key word believe that they shouldn't have paid those fees obviously the bank thinks that the client was wrong and pretty much they're being nice and paying them back so I think it's a little bit win-win there nevertheless I'm not entirely sure but obviously the technicalities are that the rates that were offered expire sometimes before the loan technically closes and so as the borrower's fault the customer has to pay a fee for this extended rate and pretty much the bank blamed customers for the delays although CNN businesses claiming that is the bank's fault I'm not entirely sure like I said I have a feeling like there's probably some fault to go around now here we have another problem a 50 million dollar settlement over homeowner fees what are we talking about here well overcharging hundreds and thousands of dollars you know for homeowners for appraisals that were ordered after they defaulted on their mortgage loans so that's not great and then there's nationwide these nationwide claims because people are charged more by Wells Fargo then they actually should have paid for these third-party appraisals in the first place now we're talking with 250,000 homeowners so not a massive amount for once again all these things tarnish the reputation of the banks so really from my perspective not great now Wells Fargo typically charged somewhere between 95 $225 and yet the actual cost was $50 so for sure less than half and these charges pretty much added to hundreds or thousands of dollars for over the time of mortgages alone and these were critically labeled so they were under other charges so kind of suspicious and you know hard to understand what was going on so and it almost makes it look like well maybe the bank knew what they were doing so not a great thing now maybe the bank has you know a good answer for example you know maybe the cost technically was $50 but they were fearful of other charges or other issues that might increase them so they were covering some of the downside I'm not entirely sure it's hard to imagine but once again you know another problem as they say Wells Fargo agrees to behave almost half a billion dollars due to some sort of auto insurance scheme well what was going on here well it was settled specifically with customers with auto insurance you know Wells Fargo purchased collateral protection insurance and place that insurance on a borrower's account and then Wells Fargo for Wells Fargo charge interest inch month and in pretty much ensured that the bank CPI charges were covered first so that's not good now this was from 2005 to 2016 and specifically the Wells Fargo dealer services and Wells our Fargo auto finance so you know not really not good and then we have another problem with Wells Fargo merchant services division overcharging small businesses for processing credit card transactions and massive early termination fees if they wanted to get out so once again you know scaring small business from Wells Fargo and you know former employees said that they had to target these small businesses now once again this is a little bit tricky so it sounds horrible and devious but on the other hand maybe Wells Fargo is saying hey we want to get these people we don't have a lot of small businesses we want to increase our small business we think we can do well for them let's focus on them you know when you say focus on helping these people that's a lot different than target target sounds a lot more malicious was it malicious or was it just them being more positive and trying to focus on these clients always hard to tell but you can see that CNN business is kind of looking for the negative story against Wells Fargo which from a newspaper standpoint makes sense now they also mention the fact that while Fargo's reading from the mid Midwest and they're trying to cut costs in the wave of scandals and they're selling all their branches from Indiana Michigan and Ohio however you know we're talking about 2.3 billion dollars of deposits leaving Wells Fargo and so when we know that there's about 1.3 trillion dollars of deposits you know this is really a drop in the bucket the part that's scary to me though is let's say they want to expand in the Midwest right they only have 52 branches in all these states so but let's say they want to go back to the Midwest well now all of these places have seen Wells Fargo and then seen Wells Fargo pretty much close their branches and sell them to somewhere else so on one hand it's a small amount of clients 2.3 billion dollars that you know are not presumably not gonna come back cuz they already got burned by Wells Fargo leaving once I that people are happy about it s on one hand maybe there's a lot of people who weren't burned and they would go to Wells Fargo but on the other hand my perspective is you know if I saw a bank pretty much close up shop and leave and then come back a few years later I wouldn't I wouldn't run to open up a bank account what that might be nervous now here's another lawsuit that alleges Wells Fargo was unfairly shuffling paycheck protection programs so this is very current and pretty much this was against these small businesses were seeking government-sponsored relief under the pay of paycheck protection program so what was the problem well apparently they were Arif shuffling these applications and prioritizing the applications that would make the bank the most money which is not great because those are much larger businesses that would have made the bank more money and the bank processed applications for $150,000 so smaller businesses at twice the rate of the larger loans and now specifically in the last three days so it almost looks like they sped up these smaller business loans just near the end after they had already front-loaded the applications for the largest loans so that is really scary and that's gonna look really bad in this current environment of the crisis that Wells Fargo did that now I did find that there were other banks who were accused of doing the same thing if you want to be more positive towards Wells Fargo in these banks well maybe just these bigger companies could get their applications and much quicker than small businesses who it's just one you know accountant or one owner trying to do it whereas these massive businesses have whole teams and maybe inside contacts with you know whoever it might be congressman or the bank itself so maybe it's not the bank's fault maybe they weren't doing something wrong maybe that's just how they received the applications or maybe people did some not-so-great things to get the better incentives and to make a little bit more money it's really hard to tell and it's just that it's just not gonna look good on the bank I think either now here we have an interesting thing twelve firms are fined a total of fourteen point four million dollars so on one hand this doesn't look so bad it's not a lot of money but the thing that bothered me was they're talking about customer records were supposed to be in a format that prevents alteration and here we see Wells Fargo not just once but also twice on this list so five million dollars so massive amount of these fines are specifically geared towards Wells Fargo as far as I can tell and you know that doesn't look good to me we have this whole problem of you know Wells Fargo cheating people and now their customer records are may be kept in a way that could be altered and not known how they're altered it doesn't look great from a regulatory perspective and kind of scares me a little bit so once again there's a massive amount of lawsuit going on here massive amount of regulation issues going on here and it's not just one thing it's Wells Fargo time after time and you know Charlie Munger Warren Buffett they point out that possibly because of all the incentives they kind of drove people to do employees to do the wrong thing that were not in the best interest of the bank or the customers there's just in the best interest of this guy getting the incentive maybe that's true we mentioned last time in the first part on Wells Fargo that pretty much their incentive program hasn't been going down it's been going up maybe those incentives are more easily reached and maybe they're less perverse I don't know but it scares me a little bit still that they still have these incentives than this program and you know maybe that's what was the main crux of all these issues but we can see that Wells Fargo had a number of issues and my assumption right now is it's very possible that every bank has these types of issues but because Wells Fargo is being analyzed so carefully you know more and more of these pop up more and more of these are found and that is I think a scary part about all of this scrutiny is that more things can be found that maybe wouldn't be such a big deal to bring down a whole area of the government to analyze but now that they are being scrutinized anyway you know every little nook and cranny is being found and so that has positives negatives the positives are well you know they get a try and make sure not to make any mistakes I'm gonna be extremely responsible in theory as they know they're gonna be scrutinized and they're gonna be really careful to keep things straight and narrow right that's Warren Buffett and Charlie Munger's perspective here and then downside like I just said maybe even small things that aren't such a big deal become massive issues because it's just one more thing in the pile and you know sadly there's a whole wide array of these problems and different areas of the bank and you know so they have regulatory problems you know lowering the the business that they can do with an asset cap and now they have all these kind of problems with their facade with people you know in terms of customers looking at the bank now they still have a massive client base but you know from my perspective still a little scary and that's presumably built into the price that's built into why it's so cheap so you have to keep in mind that there's gonna be a long term perspective these legal things will go away the tarnish will eventually go away and you have to really think that and if you don't think that Wells Fargo has changed for it right maybe you go into the bank and you feel like it's still the same old incentive program it's still the same old problems then that should be a very big cue to you now nevertheless it's only one bank but you know these are the types of things that you can notice as or just a regular customer it's just a regular person I have no idea I don't use Wells Fargo so it's hard for me to know but it's important to know about all these little issues going forward okay so you know next time we're gonna talk about insider trading and what's going on over there we're gonna stop it here and once again trying to keep these videos short tell me if you like if you don't like it we can make more of them hopefully more often and it'll possibly just be easier for you and me but let me know like comment subscribe tell me what's going on what you think is good what the thing is bad thank you so much