Tell us if you’ve heard this before: Wells Fargo lied to some customers, rewarded employees for ripping them off and then lied to them again.
Wells Fargo told the commercial customers they were being charged certain fixed rates, but then incentivized salespeople to “overcharge FX customers,” according to the lawsuit. The bank then concealed the overcharges and gave “false explanations” for the inflated prices, the government said.
On the bright side, we guess Wells wasn’t lying when it said it forex follies had nothing to do with collusion, front-running or market-manipulation. On the less bright side, those bad apples sure are piling up and giving Elizabeth Warren a thirst for blood.
“Your record gives me grave concerns. Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed, and it’s why I will oppose your renomination,” Warren said [to Federal Reserve Chairman Jay Powell].
Of course, there is something Jay could do that might change Liz’s mind. She’ll be happy either way.
Wells Fargo pays $72.6 million to resolve Justice Department claims it defrauded currency customers [CNBC]
Sen. Warren calls Fed Chair Powell a ‘dangerous man,’ says she will oppose his renomination [CNBC]
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