Wells Fargo has built up the wrong kind of reputation over the past year or so. After committing account fraud and engaging in other types of misbehavior in more recent years, the bank should be facing more scrutiny than they are subject to right now. But even after that track record, their upper brass demands that the government should “go easy” on the bank and reduce its regulatory oversight.
Wells Fargo Suffers From Delusional Grandeur
If there is one US bank which should not complain too much regarding regulation right now, it is Wells Fargo. For their account fraud alone, the bank should have its license revoked indefinitely, and all of their upper brass put behind bars. Unfortunately, that has not happened, nor will it happen anytime soon.
In fact, it appears that the bank’s management is more brash than ever before. They are actively pushing the incoming Trump administration to go easy on regulation for this bank specifically. This is a very odd request, considering that Wells Fargo is making one wrong decision after the other, and it is evident that they need regulatory guidance before things get out of hand even further.
But Wells Fargo CEO Tim Sloan feels that this bank is in a position where regulation is starting to hurt the business–a delusional statement from a man leading a company which commits large scale fraud and tries to cover up the tracks even after the information came to light. If there is one thing they need, it is very tight scrutiny at any given time.
For example, Sloan feels that the annual review by the Federal Reserve, related to how much money banks can pay out through dividends, need some revision. It seems impossible that Wells Fargo, of all banks, should take this measure as an issue as they are generating profits from fraudulent activities–all in the name of paying out higher dividends, of course.
Moreover, Sloan has an issue with the Dodd-Frank’s Volcker Rule. This guideline restricts banks from using their own money to execute proprietary trading. Even though the bank has never been a fan of this practice, the costs and information requirements to adhere to this rule are “excessive”, according to Sloan. A lot of complaining is going on at Wells Fargo, that much is obvious.
The banking sector is so full of itself and drunk on power that they feel they can just say and do virtually anything. These comments by Sloan will not be appreciated by the general population, and certainly not those who were affected by the account fraud. Wells Fargo would do best to keep their head down and get with the program, as they are the last ones who need less regulation right now.
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