Business
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Thu Jan 22, 2015 3:49pm EST
UNCLE BOB MAIOCCO CHRONICLES
WELLS FARGO IS BAD FOR MEDFORD
U.S. fines Wells Fargo, JPMorgan over 'illegal mortgage kickbacks'
WASHINGTON
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By Sarah N. Lynch
U.S. and state regulators ordered Wells Fargo (WFC.N) and JPMorgan Chase (JPM.N)
to collectively pay $35.7 million on Thursday to settle charges that
they participated in an illegal marketing kickback scheme with a
now-defunct title company.
The
Consumer Financial Protection Bureau and the Maryland Attorney
General's Office ordered Wells Fargo to pay a $24 million penalty plus
another $10.8 million in redress to consumers. JP Morgan will pay a
$600,000 penalty, plus another $300,000 in redress, the CFPB said.
The
CFPB said the former title company, Genuine Title, would give the
banks' loan officers cash, marketing materials and other consumer
information in exchange for business referrals.
In
addition to charging the two banks, the CFPB also announced it was
charging a former Wells Fargo employee, Todd Cohen, and his wife, Elaine
Oliphant Cohen, for their involvement in the alleged scheme.
http://www.reuters.com/article/us-usa-banks-fines-idUSKBN0KV2C020150122
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Wells Fargo Advisors to pay $5 million fine over controls failure
WASHINGTON (MarketWatch) -- Wells Fargo Advisors will pay a $5
million penalty to settle Securities and Exchange Commission charges it
didn't have adequate controls to prevent an employee from insider
trading. The agency said Wells Fargo Advisors admits wrongdoing, and
that multiple groups were at fault by not preventing a broker from
trading on a client's nonpublic information. The SEC said the broker
learned from a customer that Burger King was going to be acquired by a
private-equity firm, and traded on that information. The charges are the
first against a broker-dealer for failing to protect a customer's
material nonpublic information.
Published: Sept 22, 2014 3:06 p.m. ET
http://www.marketwatch.com/story/wells-fargo-advisors-to-pay-5-million-fine-over-controls-failure-2014-09-22
The Wall Street Journal
Wells Fargo fined for anti-money-laundering ‘failures’
Published: Dec 18, 2014 10:56 a.m. ET
Finra
said the electronics systems supporting the Wells Fargo Customer
Identification Program had a “design flaw” that impacted more than 3% of
the 6.9 million customer accounts opened by two Wells Fargo brokerage
divisions from October 2003 to October 2012. Wells Fargo
WFC, -0.53%
reported the problem to Finra
and remediated it, a person familiar with the matter said.
