Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

bloomberg.com

Post reply on HN
Print view View original

21–27 of 27 posts

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#21

Post by tommymachine »

hellameta wrote: post #19

This is quite insane. Is it too early to toss around the idea that the US government is slowly trying to take over the banking system?

From a political perspective, attacking the Wall St label is an effective "enemy of my enemy is my friend" strategy for gaining democratic power with the lower classes -- the people who comprise a democratic majority. Nevermind that the allegations won't stick, not necessarily because of government conspiracy, but because they aren't smart allegations that attack real problems.

Real problems are big and hairy. It's much easier to witch-hunt than it is to solve real problems. The real problem might be that the products Wells Fargo is cross-selling are outdated. It might be that cross-selling is an outdated strategy. These are much harder problems to solve than locking up or fining a CEO who made mistakes in leadership. That's much easier. Because every CEO makes errors in leadership.

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#22

Post by dalke »

zrail wrote: post #18
yodsanklai wrote: post #17

I'm not familiar with the US legal system, but what senators have to do with this? shouldn't it be the role of a prosecutor to deal with this case? I also find the politicians quite hypocritical. Aren't they to blame if the laws they voted for (or didn't vote for) are such that guys like Stumpf get unpunished for their wrongdoings?

Congress can hold hearings, they can issue subpoenas, and they can hold someone in contempt of Congress. There is currently no case. Congress is simply holding a hearing to roast the guy for making some stupid decisions. If information comes to light that would indicate criminal wrongdoing of a private citizen or a non-elected member of the government during a Congressional hearing the justice department takes over.…

They can also change the laws.

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#23

Post by spacehome »

Ir0nMan wrote: post #13
spacehome wrote: post #10

I'm confused. My impression is that Wells Fargo made de minimus profit on these practices and there's no evidence at all that Stumpf himself did anything illegal (creating shitty incentive programs is just stupid, not criminal). Maybe there should be a criminal investigation into Stumpf, but to call for resignations and bonuses to be returned is premature, no?

Of course. It's simply too early to say. However, Warren is known for her political grandstanding. It's kinda her thing.

I guess I knew that when I wrote my comment. It would be nice if we all collectively remember when politicians spout nonsense like that the next time they grandstand or run for re-election.

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#24

Post by zrail »

dalke wrote: post #22
zrail wrote: post #18

Earlier quoted context omitted.

Congress can hold hearings, they can issue subpoenas, and they can hold someone in contempt of Congress. There is currently no case. Congress is simply holding a hearing to roast the guy for making some stupid decisions. If information comes to light that would indicate criminal wrongdoing of a private citizen or a non-elected member of the government during a Congressional hearing the justice department takes over.…

They can also change the laws.

True, but that takes a heck of a lot more effort than berating a CEO for 30 minutes straight.

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#25

Post by dragonwriter »

zrail wrote: post #18
yodsanklai wrote: post #17

I'm not familiar with the US legal system, but what senators have to do with this? shouldn't it be the role of a prosecutor to deal with this case? I also find the politicians quite hypocritical. Aren't they to blame if the laws they voted for (or didn't vote for) are such that guys like Stumpf get unpunished for their wrongdoings?

Congress can hold hearings, they can issue subpoenas, and they can hold someone in contempt of Congress. There is currently no case. Congress is simply holding a hearing to roast the guy for making some stupid decisions. If information comes to light that would indicate criminal wrongdoing of a private citizen or a non-elected member of the government during a Congressional hearing the justice department takes over.…

> For elected officials Congress (specifically the Senate) has the option of initiating an impeachment trial.

No, it doesn't.

(Impeachment trials in the Senate are neither restricted to elected officials nor do they extend to all elected officials, and in any case the Senate does not have the "option" to initiate such a trial, an impeachment trial happens only after impeachment by the House of Representatives.)

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#26

Post by dalke »

zrail wrote: post #24
dalke wrote: post #22

Earlier quoted context omitted.

They can also change the laws.

True, but that takes a heck of a lot more effort than berating a CEO for 30 minutes straight.

Then it's a good thing they did more than that.

Even that meeting, titled "An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response", was more than three hours long, and with three other witnesses.

Why, it's as if it were part of a larger effort to change the laws.

Re: Warren Says Wells Fargo's Stumpf Should Resign, Face Criminal Investigation

#27

Post by toomuchtodo »

hellameta wrote: post #19

This is quite insane. Is it too early to toss around the idea that the US government is slowly trying to take over the banking system?

The US banking sector should be regulated like utilities. Take over? No need for that with the proper laws in place to constrain their misbehavior.
Post reply on HN