Another Wells Probe Wells Fargo is under investigation by the Labor Department, which wants to see whether the bank has been pushing people with cheaper corporate 401(k) plans to transfer their holdings to Wells's more expensive individual retirement plans. The timing is not great for the bank, which just last week had to pay a $1 billion fine over misconduct in its mortgage and car loan divisions. Wall Street Journal
Wells Fargo sues American Airlines over late planes American Airlines Group Inc. was late in returning three aircraft by two, 45 and 49 days, Wells Fargo & Co. alleges in a lawsuit filed Monday in New York. Wells Fargo said the airline leased three Boeing aircraft — which have a market value of more than $15 million each — for a monthly rate of $250,000. The bank said because American was late in returning the aircraft, it had to pay extra to technical experts who had been dispatched to the return location. (Triangle Business Journal)
Press Release Wells Fargo Advisors Settles SEC Charges for Improper Sales of Complex Financial Products Misconduct Imposed Substantial Costs on Retail Customers FOR IMMEDIATE RELEASE 2018-112 Washington D.C., June 25, 2018 — The Securities and Exchange Commission today announced that Wells Fargo Advisors LLC agreed to settle charges of misconduct in the sale of financial products known as market-linked investments, or MLIs, to retail investors. According to the order, the SEC found that Wells Fargo generated large fees by improperly encouraging retail customers to actively trade the products, which were intended to be held to maturity. As described in the SEC’s order, the trading strategy – which involved selling the MLIs before maturity and investing the proceeds in new MLIs – generated substantial fees for Wells Fargo, which reduced the customers’ investment returns. The order further found that the Wells Fargo representatives involved did not reasonably investigate or understand the significant costs of the recommendations. The SEC found that Wells Fargo supervisors routinely approved these transactions despite internal policies prohibiting short-term trading or “flipping” of the products. “It is important that brokers do their homework before they recommend that their retail customers buy or sell complex structured products,” said Daniel Michael, Chief of the Enforcement Division’s Complex Financial Instruments Unit. “The products sold by Wells Fargo came with high fees and commissions, which Wells Fargo should have taken into account before advising retail customers to sell their investments and reinvest the proceeds in similar products.” Without admitting or denying the findings in the SEC’s order, Wells Fargo agreed to return $930,377 of ill-gotten gains plus $178,064 of interest and to pay a $4 million penalty. Wells Fargo also agreed to a censure and to cease and desist from committing or causing any violations and any future violations of certain antifraud provisions of the federal securities laws. The order recognizes that Wells Fargo took remedial steps to address the allegedly improper sales practices. The SEC’s investigation was conducted by Emily A. Rothblatt, Michael D. Wells, and Ana D. Petrovic, and supervised by Jeffrey A. Shank. The SEC’s examination that led to the investigation was conducted by Jennifer L. Spicher and Christopher L. Caprio and supervised by John T. Brodersen and Daniel Gregus.
4 Wells Fargo reps managing $550M go indie with Raymond James Four advisers collectively managing $550 million at Wells Fargo Advisors in suburban Atlanta have formed their own independent businesses and affiliated with Raymond James. (Investment News)
They are doing a lot of wrongs lately but there must be something they are doing right, looking at their stock performance? I own WFC, C and BAC for years. Frankly I wish I put all my $ into WFC instead. Would have been miles ahead if I did.