Receiving Wide Coverage ...
Wells probed: Federal prosecutors in at least three districts have begun investigating Wells Fargo's sales practices in the wake of last week's $185 million settlement. The Wall Street Journal reported that federal prosecutors in Manhattan and San Francisco sent subpoenas to the bank. The investigation "is focusing on whether someone senior within the bank directed employees to falsify documents in conjunction with the opening of accounts and products without consumers' knowledge or authorization," the Journal reported. "Prosecutors are also focusing on whether there was willful blindness to sales practices on the part of executives at the bank."
"The subpoenas from federal prosecutors raise the prospect that the investigation, while in its early stages, could lead to criminal charges for the bank or its employees," said the New York Times, which also reported that prosecutors in North Carolina, where the bank has major operations, are also investigating the matter. "Another option is for prosecutors to handle the investigation as a civil fraud matter, which would require a lower burden of proof."
And, as if Wells doesn't have enough to worry about, a shareholder activist who was puishing Wells Fargo to
"How can they argue against my proposal now?" Armstrong asked. "Where is the board? Where is the audit committee of the board? It appears they go to the meetings, they pick up their cheques and they go home."
Wall Street Journal
To sue or not to sue: A group representing some of the largest U.S. banks said the Federal Reserve likely "
Better than expected: Citigroup said its trading revenue so far this quarter is above expectations. Speaking at a conference Wednesday, CFO John Gerspach said trading revenue, while down slightly from the second quarter, "would be up by mid-single digits" compared to a year ago, driven by
Financial Times
Banned?: Wells Fargo isn't the only big bank feeling the heat over sales practices. The U.K.'s Financial Conduct Authority is planning to ban Andrew Tinney, the former chief operating officer of Barclay's wealth division, for allegedly
Good and bad?: Atom Bank, which the Financial Times describes as the U.K.'s first app-based bank, registered nearly 40,000 potential customers, but only