Wells Fargo Hit with $1B in Fines • Hacker News Board

Re: Wells Fargo Hit with $1B in Fines

#21

Post by rdiddly » Fri, Apr 20, 2018, 5:59 PM UTC

djschnei wrote: post #8

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

Unfortunately, the massive restructuring you're referring to would likely need to be in the form of deregulation. It's unfortunate because deregulating something is typically a non-discussion. Our banking regulations make almost no distinction between massive, "too big to fail" banks and small community banks. Like most regulation, it's the massive companies that can foot the bill for complying with regulation, creat…

Why is it always a choice between poorly-written regulations and no regulations?

Re: Wells Fargo Hit with $1B in Fines

#22

Post by samstave » Fri, Apr 20, 2018, 5:59 PM UTC

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

I once took out $25,000 from my WF account and asked for it in a cashiers check. I paid the $5 fee for the check (even though they had stated that it would be free) - then I took my money....

I came back ~1month later to re-deposit the check into SAME WF acct.

They stated that they had to put a hold on the check for 14 days until they could verify the funds. For a WF issued cashiers check. From the SAME act the funds came out of.

I changed banks that day.

Re: Wells Fargo Hit with $1B in Fines

#23

Post by monster_group » Fri, Apr 20, 2018, 6:00 PM UTC

So the government gets to keep $1B collected from WF. What about the people who overpaid all those fees? Are they being refunded?

Re: Wells Fargo Hit with $1B in Fines

#24

Post by marshray » Fri, Apr 20, 2018, 6:00 PM UTC

vinhboy wrote: post #2

It's hard for me think of wellsfargo as an "evil" company, because every time I had to go into the branch, they have some of the nicest tellers and it's always a pleasant experience.

I have been a WF customer for many years and, to be fair, they have always done right by me. It used to be that my main complaint was they would ask me to sign up for a credit card every time I walked into a branch, but they've cut way back on that.

I am, of course, disgusted by their fraudulent actions, and have several times considered closing my accounts in protest. But now I'm thinking that I probably couldn't find a bank anywhere under closer and more intense scrutiny. For now at least, it seems they're on their best behavior.

Re: Wells Fargo Hit with $1B in Fines

#25

Post by [deleted] » Fri, Apr 20, 2018, 6:02 PM UTC

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

[deleted]

Re: Wells Fargo Hit with $1B in Fines

#26

Post by ellisv » Fri, Apr 20, 2018, 6:02 PM UTC

istorical wrote: post #10

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

I had a similar breaking point with Wells Fargo. I was about 20. Needed to get something notarized, someone mentioned that banks could do it. I googled and confirmed WF could do it for their customers so I went over to my nearest branch. Asked the front desk if I could get something notarized. They said sure and referred me to a banker at a desk. I walked over and sat down and told him I was looking to get something…

> A few months later walked by a branch and on a whim decided it was a good time to close my account. Walked in, ask to close it, they said I had to wait, I said oh OK that's alright I'll just withdraw all of it. Good riddance.

Careful, if it's not actually closed they'll hit you with fees.

Re: Wells Fargo Hit with $1B in Fines

#27

Post by djschnei » Fri, Apr 20, 2018, 6:02 PM UTC

rdiddly wrote: post #21

djschnei wrote: post #8

Earlier quoted context omitted.

Unfortunately, the massive restructuring you're referring to would likely need to be in the form of deregulation. It's unfortunate because deregulating something is typically a non-discussion. Our banking regulations make almost no distinction between massive, "too big to fail" banks and small community banks. Like most regulation, it's the massive companies that can foot the bill for complying with regulation, creat…

Why is it always a choice between poorly-written regulations and no regulations?

Not sure... just seems to be a reality.

Re: Wells Fargo Hit with $1B in Fines

#28

Post by kolbe » Fri, Apr 20, 2018, 6:03 PM UTC

djschnei wrote: post #5

Where does the fine go? Does it get divvied up amongst the people affected by WF's wrongdoing?

I don't know about this fine, but the vast majority of bank fines are usually "consumer relief." Banks usually are in a position to where the actual financial impact of the fine is a very small fraction of the headline number.

"Goldman Sachs buys a home loan at 50 percent off. It then modifies the mortgage for the borrower to perhaps 60 percent of face value. The modification gets referred to the overseer of the mortgage settlement, proving that Goldman did lower the cost for the homeowner. And as homeowners begin to make modified payments, the bank can resell the now-performing loans, or just take in the revenue stream. If this works, Goldman makes at least a 10 percent profit on the deal, while satisfying the consumer relief terms of the settlement."[1]

The above glosses over the notion of it working by saying "if it works," but for the most part, it does.

[1] https://finance.yahoo.com/news/goldman-sachs-wins-lose-mortg...

Good reference, too:

https://www.nytimes.com/2017/03/17/business/dealbook/mortgag...

Re: Wells Fargo Hit with $1B in Fines

#29

Post by TuringNYC » Fri, Apr 20, 2018, 6:03 PM UTC

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

Sounds bad, but you should see some Citibank branches -- they dont even make the call for you nor do you get a place to sit down -- I was trying to resolve an issue and the representative literally took me to an in-bank phone booth, dialed the number and handed the phone to me. Basically -- deal with call-center-hell while standing up. What's the point?

The good news is that this behavior is not universal, I looked around and there are banks with great customer service (in my case, i found ChaseManhattan to be superb, though it may be due to my "tier" and how much money i keep with them.)

Re: Wells Fargo Hit with $1B in Fines

#30

Post by guelo » Fri, Apr 20, 2018, 6:03 PM UTC

djschnei wrote: post #8

aphextron wrote: post #4

Something has happened to big banks along the way, where they no longer actually provide banking services to their customers. When I walk into a Wells Fargo branch now and sit down with a "banker" to take care of my accounts, it consists of sitting next to them while they call 1-800-WELLSFARGO for me and talk to a call center. There simply is no service anymore. I walked into my local branch to open up an IRA last we…

Unfortunately, the massive restructuring you're referring to would likely need to be in the form of deregulation. It's unfortunate because deregulating something is typically a non-discussion. Our banking regulations make almost no distinction between massive, "too big to fail" banks and small community banks. Like most regulation, it's the massive companies that can foot the bill for complying with regulation, creat…

That deregulation already happened a month or two ago. But it's bullshit because the banks were awful before Dodd Frank too.

What Obama should have done during the crisis is nationalize the failing big banks instead of bailing them out and then broken them down into a hundred little banks and sold them off.