Today, 6:33 PM
- Wells Fargo (WFC -0.2%) -- embattled by an account-sales scandal -- is facing possible bans in Chicago and the state of Illinois, according to reports.
- Chicago Alderman Edward Burke has introduced an ordinance to that effect -- suspending the bank from acting in several capacities for the city -- and Illinois Treasurer Michael Frerichs has a Monday news conference where he will announce "plans to suspend billions of dollars in investment activity with Wells Fargo."
- Burke leads the Chicago City Council's finance committee. That body's going to take up the proposed ordinance Wednesday.
- The moves follow Wednesday's news that California has suspended business with Wells Fargo.
- Previously: Buffett has spoken with Wells' Stumpf - CNBC (Sep. 29 2016)
- Previously: More Wells woes: Bank faces sanctions over military loans (Sep. 29 2016)
Today, 11:37 AM
- The ADRs of Deutsche Bank are higher by 15% on a report it's near settling U.S. mortgage-related charges for just $5.4B (versus the $14B which had previously been floated).
- The move has lifted Europe out of the red, led by Germany's (NYSEARCA:EWG) 1% gain. The Dow's (NYSEARCA:DIA) 1% advance is leading the U.S. averages higher.
- Bank of America (BAC +3.1%), Citigroup (C +3.2%), JPMorgan (JPM +1.7%), Wells Fargo (WFC +0.7%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +2.9%). XLF +1.5%
Yesterday, 4:35 PM
- "We spoke for five minutes. I told him the problem was bigger than he thought," says Warren Buffett, confirming to CNBC's Becky Quick that he's talked to Wells Fargo (NYSE:WFC) CEO John Stumpf. The call to Stumpf, says Buffett, came after the CEO's appearance on Mad Money, which Buffett thought didn't go well. The Oracle says he has not spoken to other board members.
- As for whether he's buying or selling here, Buffett says regulatory limits currently prevent Berkshire (BRK.A, BRK.B) from adding to its position. He reminds he's never told anyone whether he would stick around in this or any other position.
- Shares -0.3% after hours following a 2.1% decline in the regular session.
- Previously: Buffett denies report he wants big changes at Wells Fargo - CNBC (Sept. 29)
Yesterday, 2:37 PM
- Regulators are set to hand down penalties to Wells Fargo (WFC -1.7%) for alleged violations of the Servicemembers Civil Relief Act, reports Bloomberg. At issue are improper repossessions of cars owned by military members.
- A penalty of as much as $20M is expected from the OCC - peanuts to Wells Fargo, but an usually large amount for abuse of that law.
- Wells has eight branches on U.S. military bases.
- The bank had previously agreed to compensate military borrowers for improper home foreclosures.
Yesterday, 12:00 PM
- Doug Kass earlier today said Warren Buffett (BRK.A, BRK.B) "expressed his extreme dissatisfaction" to the Wells Fargo (WFC -0.7%) board, and called for "a radical transformation of the bank's ethics.
- However, a spokesperson for The Oracle tells CNBC's Becky Quick the claim Buffett expressed "extreme dissatisfaction" to the board is not true.
Yesterday, 11:04 AM
- Our elected officials are in high dudgeon as Wells Fargo (NYSE:WFC) CEO John Stumpf returns to Capital Hill for another day of testimony - this time in front of the House Financial Services Committee.
- NY Rep. Carolyn Maloney brings up Stumpf's $13M Wells stock sale in 2013, and wants to know if he "dumped" the stock after finding out about the fraud. She says the fraud likely began in 2007 and one report suggests it goes back as far as 1998.
- "Fraud is fraud and theft is theft," says Committee Chair Jeb Hensarling, adding he's an unhappy Wells Fargo customer. If he were in a position to repay his mortgage, he would, Hensarling tells Stumpf (hint to Hensarling: Chris Dodd knows a guy).
- Live blog
- Wells shares are down 0.4% today, while the rest of the big banks are modestly in the green.
Yesterday, 2:56 AM
- Wells Fargo (NYSE:WFC) CEO John Stumpf returns to Capitol Hill today to testify before the House Financial Services Committee over a sales scandal that has become a major issue in Washington and on Wall Street.
- The misconduct has triggered lawsuits, investigations and wiped more than $20B off the bank's market value, and led California to suspend its business relationship and impose sanctions on Wells Fargo for one year.
Wed, Sep. 28, 2:53 PM
- Sanctions announced by State Treasurer John Chiang include: Suspension of investments by the Treasurer's office in all Wells Fargo (WFC +0.1%) securities, suspension of the use of Wells Fargo as a broker-dealer for purchasing investments by his office, suspension of Wells Fargo as an underwriter on CA state bonds.
- The sanctions take effect immediately and will remain in place for one year.
- Chiang also plans to work with Calpers and Calsters - which combined have more than $2.3B invested in Wells Fargo - to pursue governance reforms, including the separation of the chairman and CEO roles.
Wed, Sep. 28, 1:16 PM
- The board's independent members are furious with Wells Fargo (WFC -0.1%) CEO John Stumpf's handling of the account opening scandal, according to Andrew Ross Sorkin. The Stumpf camp, on other hand, insists the board was given adequate heads up and that he's being thrown under the bus.
- The board yesterday announced an independent investigation (in which Stumpf has recused himself), and the forfeiture of $41M of unvested equity awards by Stumpf, along with no salary for the CEO during the probe.
- Dow Jones reports the investigation could take months, and that the CEO is likely to stay on for the time being.
Wed, Sep. 28, 9:32 AM
- "Large banks are going to be forced to take on more capital," says Dick Bove. "It will make the cost of funding more, not less, expensive. It will reduce the appeal for investors to put money at risk in the banking system."
- Bove is commenting on a weekend announcement from Fed Governor Daniel Tarullo promising future stress tests will be geared to demanding even higher cash buffers for banks. Set to take effect next year, the new rule could raise capital requirements for the largest banks by 3 or 4 percentage points, writes Jeff Cox at CNBC.
- Interested parties: BAC, C, WFC, JPM, GS, MS
- There's good news though, as those lenders with less than $250B in assets won't be subject to the same standards. FBR's Edward Mills calls it a "significant positive" for regionals, which now have more certainly on the process, reduced regulatory expenses, and thus the ability to return more capital to owners.
- Interested parties: RF, ZION, CMA, KEY, FITB, STI, NYCB, HBAN, PNC, BBT, MTB
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, PSCF, KRS, WDRW, DPST
Tue, Sep. 27, 7:39 PM
- While Wells Fargo (NYSE:WFC) independent directors open a probe into retail sales practices, and executives John Stumpf and Carrie Tolstedt give up some compensation, Stumpf is also preparing for round two of congressional testimony -- this time in the House of Representatives on Thursday.
- There are few key differences from his visit to the Senate, though the bank will now drop its retail sales goals by this Saturday, rather than its timetable to drop them by Jan. 1, according to prepared remarks
- While not much else differs in Stumpf's remarks (roughly the same apologies), House lawmakers expect to press him for more complete responses to questions he wasn't able to address before the Senate.
- After hours: WFC +0.2%.
Tue, Sep. 27, 7:08 PM
- With a clamor growing for clawbacks of compensation for Wells Fargo's (NYSE:WFC) Carrie Tolstedt and CEO John Stumpf, independent directors are launching a probe into the bank's practices, and the two executives will forfeit some awards.
- Stumpf will forfeit unvested equity awards valued at $41M, and will give up his salary while the investigation is going on, the bank says.
- Tolstedt -- the former retail banking chief, in charge during a period of questionable sales practices -- has left the company, Wells says, and will receive no severance. She'll also forfeit unvested equity awards valued at about $19M, and won't exercise outstanding options during the probe.
- Neither will receive a 2016 bonus, the bank added.
- Previously: WSJ: Wells board actively considering clawbacks (Sep. 27 2016)
Tue, Sep. 27, 10:40 AM
- Among those in the crosshairs would be retiring retail banking chief Carrie Tolstedt, not to mention CEO John Stumpf, writes Emily Glazer. The leak comes after Stumpf was excoriated on Capital Hill over the account opening scandal last week, and ahead of his return to D.C. (this time to the House) on Thursday.
- Tolstedt's total compensation could run to about $90M, according to Wells Fargo (WFC -0.3%), and Stumpf's currently adds up to about $160M, according to an independent analysis.
- In front of the Senate last week, Stumpf (who is also chairman) notably punted on the idea of clawbacks, but the board days later hired an outside consultant to advise on the issue.
Tue, Sep. 27, 4:08 AM
- "Given the serious nature of the allegations," the U.S. Labor Department has pledged to conduct a "top-to-bottom" review of all complaints and alleged violations it has received concerning Wells Fargo (NYSE:WFC) in recent years.
- The bank was ordered to pay $190M earlier this month to settle civil charges claiming its employees had set up about 2M sham accounts and credit cards.
Sun, Sep. 25, 8:34 AM
- Former Wells Fargo (NYSE:WFC) employees have filed a class action seeking $2.6B or more for workers who tried to meet aggressive sales quotas without engaging in fraud and were later demoted, forced to resign or fired.
- The lawsuit on behalf of people who worked for the bank in California over the past decade, including current employees, focuses on those who followed the rules and were penalized for not meeting sales targets.
Fri, Sep. 23, 4:24 PM
- Amid calls for the bank to claw back at least some executive pay due to the account opening scandal, the board at Wells Fargo (NYSE:WFC) has hired Shearman & Sterling to advise on executive compensation, reports the WSJ.
- Those in the sights of lawmakers and investors include CEO John Stumpf, COO Tim Sloan, and former retail banking chief Carrie Tolstedt.
- In Congressional testimony earlier this week, Stumpf (who is also board chairman) was notably mum on whether clawbacks would be appropriate.