Thursday, February 2, 2017
The Problem With Wells Fargo And Their Bankruptcy Efforts
Wells Fargo has made headlines recently, and not in positive ways. The first wave of stories that came shocked us all, when we learned that employees were opening accounts for customers without their knowledge. The punishment was quick, and harsh. The bank was fined close to $200 million for these fraudulent actions and just over 5,000 people lost their jobs. The Bank’s reaction was to implement processes to avoid future incidents, while also removing hard to reach “sales goals” that may have led to some of the activity. It seemed the culmination of these bad acts came when then CEO, John Stumpf resigned.
But unfortunately for the Bank, their troubles were not over. Wells Fargo has again been denied relief from the bankruptcy court, and here is why:
• The bank was required to maintain documents that would allow it to “fail” without using public funds as a form of “bail out”.
• Banking regulators have held that Wells Fargo’s plan in this regard is deficient.
Until these problems are fixed, Wells Fargo will not be allowed to open any new branches internationally and will also be prohibited from buying any non-banking companies. The banking giant has been given until the end of March to remedy these deficiencies, and believe they can do so satisfactorily. These events have really helped to bring to light the public’s distrust of big business, and until appropriate measures are taken we may be in that place for quite a while. It seems unfair to the average American who struggles to make ends meet, that corporations are able to get away with these types of practices. In the wake of these scandals many customers pulled their accounts from Wells Fargo, and the entirety of the fallout has likely not yet been felt. The best thing to do in uncertain financial times such as these is to safeguard your money, and take steps to cut back where you can so you don’t suffer a financial downfall. We can help with this, by providing guidance on budgets, refinancing, mortgage loan modifications, debt consolidation, or by filing bankruptcy for you. Call us today for help.
For more information about how to fix your finances, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.