Wells Fargo's Big Fine Puts Fresh Focus on Power of Trump Tweets

[laserhaas]

This discussion thread was locked as off-topic by muriel_volestrangler (a host of the Latest Breaking News forum).

Source: Bloomberg

For years, Republican lawmakers and regulators have groused about big corporate fines, arguing that they mostly punish blameless shareholders, not the executives who are responsible for misconduct.

Then President Donald Trump tweeted his ire about Wells Fargo & Co. and -- at least in the case of the embattled bank -- the GOP is singing a different tune.

Watchdogs appointed by Trump -- including a conservative former congressman -- announced Friday that Wells Fargo would pay $1 billion to settle allegations that its auto-lending and mortgage businesses abused consumers. The enforcement actions add to pain borne by the bank’s investors, who’ve endured the worst stock performance among the 20 biggest U.S. lenders since it first ran afoul of regulators over its 2016 phony accounts scandal.

Link to tweet

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Read more: https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2018-04-21/wells-fargo-s-big-fine-puts-fresh-focus-on-power-of-trump-tweets

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Mulvaney said Wells Fargo’s “historic violations” warranted the historic response. While $1 billion is a lot of money, it represents about 18 percent of the profit Wells Fargo reported last quarter. So, it may not have a historic impact on earnings.

[KPN]

1. So much bullshit. "cut regs but make penalties severe when caught cheating" ... more like

seduce knuckledraggers by flogging Wells Fargo with a feather. This guy is nothing but crap, 24/7.

[KentuckyWoman]

2. $Billion fine - quietly negotiated down to $Million plus

entire $Billion comes off taxes so in the end we'll pay them...

But it makes good news copy at the moment.

[truthisfreedom]

3. He hates American banks as much as he hates Americans.

[zentrum]

4. They must have

…turned him down for a loan in the past.

[laserhaas]

5. I wonder that dynamic - also

[muriel_volestrangler]

6. Locking - the hosts feel this is analysis, rather than a breaking news story

The Wells Fargo fine was covered in an LBN thread on Thursday: https://www.democraticunderground.com/10142041767 . This article is analysing that in the light of Trump's tweet from December, and how his tweets may affect companies in general. Please repost in GD. Thanks.