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" The embattled Wells Fargo Bank, famously accused of signing up its customers to multiple accounts without their knowledge, was discovered last week to be doing the same thing with a life insurance product sold in their branches by Prudential. This could prove even more damaging than the original fake account scandal, as bankers are not allowed to sell insurance, much less secretly sign people up for it.
Then on Tuesday, the bank was suspended from doing any work for the city of San Francisco, its home town. Plus, Wells was the only U.S. bank to have their “living will” — a government-mandated roadmap for how to dismantle the firm in the event of a failure — rejected by federal regulators. This is the third time since 2014 Wells Fargo had its living will denied as not credible, and for the first time, that will lead to sanctions: The Federal Deposit Insurance Corporation and the Federal Reserve announced they will prohibit Wells Fargo from establishing any international subsidiaries or purchasing any nonbank companies.
The company has until March 31 to re-submit a credible living will. If that doesn’t pass muster, the bank could be forced to sell off business lines, essentially breaking itself up.
But there’s a bright side to all of this for Wells Fargo, and his name is Donald Trump.
By that March 31 deadline, Trump will have been in office for two months. And while the Federal Reserve and the FDIC are independent agencies, Trump will certainly have an incentive to get them to call the dogs off the troubled bank.
You see, Trump owes Wells Fargo a lot of money. "
https://theintercept.com/2016/12/16/wells-fargo-is-on-a-losing-streak-but-still-has-some-trump-cards/
Then on Tuesday, the bank was suspended from doing any work for the city of San Francisco, its home town. Plus, Wells was the only U.S. bank to have their “living will” — a government-mandated roadmap for how to dismantle the firm in the event of a failure — rejected by federal regulators. This is the third time since 2014 Wells Fargo had its living will denied as not credible, and for the first time, that will lead to sanctions: The Federal Deposit Insurance Corporation and the Federal Reserve announced they will prohibit Wells Fargo from establishing any international subsidiaries or purchasing any nonbank companies.
The company has until March 31 to re-submit a credible living will. If that doesn’t pass muster, the bank could be forced to sell off business lines, essentially breaking itself up.
But there’s a bright side to all of this for Wells Fargo, and his name is Donald Trump.
By that March 31 deadline, Trump will have been in office for two months. And while the Federal Reserve and the FDIC are independent agencies, Trump will certainly have an incentive to get them to call the dogs off the troubled bank.
You see, Trump owes Wells Fargo a lot of money. "
https://theintercept.com/2016/12/16/wells-fargo-is-on-a-losing-streak-but-still-has-some-trump-cards/
