CBAI was compelled to write to the Illinois Congressional Delegation regarding the disturbing revelations about the massive wrongdoing at Wells Fargo Bank which resulted in a multi-million dollar fine against yet another mega bank. Well Fargo’s misdeeds adds to a tragically long list of violations (often criminal) by the nation’s largest banks as evidenced by billions of dollars in fines and settlements, enforcement actions, and deferred prosecution agreements (conditional amnesty). These mega banks have again proven that they are Too-Big-To-Manage, Too-Big-To-Regulate, Too-Big-to-Behave, Too-Big-To-Prosecute, and are apparently Too-Big-To-Jail.
The bi-partisan reaction to the Wells Fargo debacle in Congress was swift and justifiably damning.
- House Financial Services Committee Chairman Jeb Hensarling (R-TX-05) said “potentially millions of customers have been ripped off by Wells-Fargo”, and “It is beyond belief that this could go on and somebody up the food chain didn’t know about it.”, and finally “This was basic theft. This was basic fraud.”
Senate Banking Committee Chairman Richard Shelby (R-AL) stated during a Senate Banking Committee hearing when Stumpf tried to dodge the question about clawing-back executive compensation, “Are you the Chairman? Are you the CEO of the company [right]?”, “The buck stops here”.
And at the same hearing, Senator Elizabeth Warren (D-MA) accused Stumpf of “gutless leadership” and said, "You should resign. You should give back the money that you took while this scam was going on and you should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission."
CBAI strongly urged the Illinois Delegation to not let the sins of Wells Fargo, and the nation’s megabanks, stall the passage of meaningful regulatory relief for well deserving community banks that treat their customers and communities with honesty and respect. Read CBAI Letter to the Illinois Congressional Delegation.
September 27, 2016