Banco Popular de Puerto Rico

Receiving Wide Coverage ...Two heads...: JPMorgan Chase said Mark Leung, head of its Asia Pacific equities business since 2014, and Jason Sippel, global head of prime services, will together run the bank's global equities division. The two replace Tim Throsby, who left to run Barclays' corporate and international division. Wall Street Journal, Financial Times

Receiving Wide Coverage ...Incentive to cheat?: Wells Fargo was hit with the largest penalty in the history of the Consumer Financial Protection Bureau to settle charges that thousands of employees created unauthorized bank and credit card accounts for customers in order to collect bonuses for themselves. The company fired 5,300 employees as a result. The bank agreed to pay a $185 million regulatory enforcement action plus another $5 million in customer remediation. Wells' own analysis found that thousands of its employees had signed up customers for more than 1.5 million deposit accounts and more than 565,000 credit card accounts without their knowledge or consent. They also issued debit cards without customers' approval, including issuing PINs and creating phony email addresses. "The settlement underscored incentives and sales goals led employees to illegally open new accounts," American Banker reports.

Receiving Wide Coverage ...It ain't over...: Wells Fargo's settlement last week didn't end its woes. While the bank was making apologies, officials were assessing the situation. Sen. Jeff Merkley, D-Ore., a member of the Senate Banking Committee, called on the panel to hold hearings to find out exactly what happened. A member of the Federal Reserve Board also weighed in. "What I have seen is that too many banks, instead of putting in place a comprehensive system for assuring that all their employees understand what is legal and ethical across the board, only respond when there is a particular problem," Fed Governor Daniel Tarullo said in an interview with CNBC. New York Times, Washington Post, American Banker

Receiving Wide Coverage ...Stumpf to the Hill: The Senate Banking Committee plans to question Wells Fargo CEO John Stumpf as pressure on the bank grows in light of the unauthorized accounts scandal. Several Wells executives are scheduled to brief panel members Tuesday prior to the hearing, which is scheduled for September 20. "Clearly there is a disconnect between whatever Mr. Stumpf was telling the public and what was actually going on at Wells Fargo — and that's putting it politely," Andrew Ross Sorkin writes in the New York Times DealBook section.

Receiving Wide Coverage ...Blame game: Wells Fargo CEO John Stumpf and CFO John Shrewsberry both tried to deflect blame for the company's phony accounts scandal. In an interview with the Wall Street Journal, Stumpf "appeared to lay blame for the problems with the employees involved than with any flaw in Wells Fargo's systems or culture."

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."

Receiving Wide Coverage ...Opening bid: The Justice Department has proposed that Deutsche Bank pay $14 billion to settle a series of mortgage-backed securities investigations dating back to the financial crisis, "a number that would rank among the largest of what other banks have paid to resolve similar claims and is well above what investors have been expecting," the Wall Street Journal reported. The figure is preliminary, and it's unclear how much of that proposed amount would be paid in cash and how much might be in consumer relief. Regardless, the bank said it "has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning," adding that it expects to settle at a "materially lower" amount.

Receiving Wide Coverage ...Too much pressure: Wells Fargo's sales culture "rooted itself so deeply … that it eventually spiraled out of control," the Wall Street Journal reports. "Questionable sales tactics … were an open secret in Wells Fargo branches across the country," according to interviews the paper conducted with more than three dozen current and former employees, from area presidents down to tellers. "Many branch managers routinely monitored employees' progress toward meeting sales goals, sometimes hourly, and sales numbers at the branch level were reported to higher-ranking managers as many as seven times a day. Tension about how to meet the sales targets was common."

Receiving Wide Coverage ...Deeply sorry: Wells Fargo CEO John G. Stumpf will tell the Senate Banking Committee Tuesday that he is "deeply sorry" the bank opened bank accounts and credit cards for customers without permission and that he takes "full responsibility" for scandal, according to his prepared opening remarks that were obtained by the New York Times and Wall Street Journal. Stumpf will strike "a decidedly contrite tone" before the committee, the Times said. "I want to apologize for not doing more sooner to address the causes of this unacceptable activity," he will reportedly testify.

Receiving Wide Coverage ...How long?: Wells Fargo CEO John G. Stumpf told the Senate Banking Committee the bank's pervasive pattern of illegally opening banking accounts without its customers' permission may have gone on even longer than previously believed. "Although the bank has traced the illegal account openings to 2011, it is investigating whether they may have begun even sooner," Stumpf told the panel, according to the New York Times. Stumpf said he found about the situation in 2013, with the board the board being apprised in 2014. "It was not fast enough, not far enough," Stumpf said. "I apologize for that."