Category Archives: wells fargo

Wells Fargo Agrees to Pay $800,000 in 38 Studios Settlement

Wells Fargo Securities will pay an $800,000 civil penalty to settle a lawsuit with the Securities and Exchange Commission over Rhode Island’s failed deal with former Boston Red Sox pitcher Curt Schilling and his now-defunct video game company, 38 Studios, The Boston Globe reports. The proposed settlement was announced on Monday and is awaiting approval […]

San Jose Explores Creating Its Own Community Bank

SAN JOSE (KPIX 5) — The city of San Jose is looking into the possibility of creating its own community bank, which would mostly be used for business services like paying contractors.

“What we’re proposing is to explore different models,” said City Councilmember Sergio Jimenez.

Jimenez, along with collegues Magdalena Carrasco and Raul Peralez, are pushing for the city to explore the option.

“We don’t know all the ins and outs of it yet, but the value that I see is that the money generated by that bank would stay in the community,” Jimenez said.

San Jose’s current banking partner is Wells Fargo, which has a contract until 2021. In an open bidding process, Chase Bank won the right to replace Wells Fargo.

But to do business with Chase, the city would have to waive its wage theft ordinance, which prohibits the city from doing business with companies that have wage theft violations. Chase is currently settling 22 wage theft cases for $160 million.

“Until they close those cases, I think it’s really important for the city to not do business with them,” said Jean Florence Cohen of UA Local 393, a union representing construction workers who have been victims of wage theft by building contractors.

But setting up its own bank would be new territory for San Jose. And it would be risky, according to Councilmember Johnny Khamis, who comes from a career in financial and investment services.

“In good years, we’re going to have a great outcome and banks do great in good years. But in bad years, the taxpayers are on the hook. And I think that’s our greatest risk,” Khamis said.

Mayor Sam Liccardo called it an interesting idea.

“Dealing with taxpayer dollars is serious business. It’s not amateur hour. We need to make sure we understand exactly what we’re doing,” Liccardo said.

Wells Fargo CEO Apologizes For Service Outage

(CNN) – Wells Fargo CEO Tim Sloan has apologized for “the inconvenience” to both customers and employees following a service outage that kept account holders from accessing their funds on Thursday.

The “recovery from these issues was not as rapid as we or our customers would have expected,” Sloan said on Friday. “We will review the system issues in detail, and do all we can to ensure that this type of disruption doesn’t happen again.”

Wells Fargo CEO Tim Sloan has apologized for “the inconvenience” to both customers and employees following a service outage that kept account holders from accessing their funds on Thursday.
Full credit: Hyoung Chang/Denver Post/Getty Images

Wells Fargo said that smoke caused by routine maintenance activities at one of the bank’s data facilities triggered an automatic power shutdown on Thursday. Customers complained they were not receiving paychecks or direct deposits and had problems with their credit cards.

The processing issues were resolved by Friday morning, and customers could resume using their debit and credit accounts — though, some customers on Friday afternoon might still see outdated balance information when checking their accounts online or at ATMs, the bank said.

All 5,500 Wells Fargo branches will stay open an extra hour on Friday and Saturday to help serve customer service requests, the bank said. It will also refund any fees, such as overdraft charges, linked to the outage.

The service outage was the latest issue for the problem-ridden bank. Over the past couple of years, the company admitted to creating fake accounts, hitting customers with unfair mortgage fees and charging people for car insurance they didn’t need. The bank has been sued, slapped with government fines and had its growth restricted by the Federal Reserve.

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Wells Fargo Reports Online Banking, Mobile App Outages

SAN FRANCISCO (CBS SF) — Customers of San Francisco-based Wells Fargo bank are experiencing outages in online banking and mobile app services Thursday morning.

According to the bank’s social media accounts, the outage was first reported shortly after 6 a.m. Pacific Time. The bank attributed it to “systems issues” due to a power shutdown at one of their facilities after smoke was detected.

The bank has apologized to customers and said they were attempting to restore services as soon as possible. As of 10 a.m., online banking services remained unavailable.

Wells Fargo also experienced a similar outage to their online services on February 1st.

More details to come.

Wells Fargo Experiencing Online Banking Outage

SACRAMENTO (CBS13) – Wells Fargo is experiencing outages this morning that are impacting online banking services and the mobile app.

One customer wrote on Twitter that she couldn’t use her funds and transfers and direct deposits were declined.

The banking giant addressed the problem on social media, writing: “We apologize to our customers who may be experiencing an issue with our online banking and mobile app. Thanks for your patience while we research this issue. If you are impacted, please check back here for updates.”

Wells Fargo Donates $3.25 Million for Camp Fire Relief

SAN FRANCISCO (CBS/AP) — Wells Fargo is donating $3.25 million to help residents and business affected by the deadly wildfire that leveled the Butte County town of Paradise.

The San Francisco-based bank said Friday that $2 million will go toward helping evacuees currently staying at a Red Cross shelter in Chico which is scheduled to close.

The money will help subsidize the rent of up to 300 families for up to six months and go toward temporary housing for seniors and workers.

The rest of the money will be made available as loans for small businesses so they can rebuild and reopen.

The Camp Fire that began on Nov. 8 killed at least 86 people and wiped out more than 14,000 homes, most of them in Paradise.

© 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report

Hampered By Scandals, Wells Fargo’s Profits Stagnate

SAN FRANCISCO (CBS SF / AP) — Wells Fargo, the San Francisco-based consumer banking giant, said its fourth-quarter profits fell slightly on Tuesday as the bank remains restrained by federal regulators, who put a tight leash on it after years of scandals and missteps.

The bank said it earned a profit of $6.06 billion in the last three months of a year, or $1.21 per share. That is down from $6.15 billion, or $1.16 per share, in the same period a year earlier. The results did beat analysts’ expectations, who were looking for Wells to earn $1.19 a share.

Wells Fargo has been in a multi-year attempt to turn itself around after years of scandals in nearly every part of its business. Federal regulators have fined the bank billions of dollars for violating consumer protection laws, and the Federal Reserve a year ago restrained Wells Fargo from growing any larger than its current size until the bank can prove it’s a better-run company.

•ALSO READ: Wells Fargo Has Splurged On Stock Buybacks Since Fake-Accounts Scandal

The restraints have put a hamper on the ability of Wells Fargo to increase its profits in the past year. The bank saw its total loans fall slightly from a year ago, and deposits were also down slightly.

That’s notable because, in a growing economy, a bank the size of Wells Fargo should be growing both deposits and loans. JPMorgan Chase & Co, which also reported its fourth-quarter results on Tuesday, reported an 8 percent increase in loans and 2 percent growth in deposits. Citigroup, which reported on Monday, also reported higher loans and deposits.

“This is a troubling erosion of Wells Fargo’s market share,” said Octavio Marenzi, chief executive of the management consulting firm Opimas.

It doesn’t appear the restraints on the bank will be coming off any time soon. In a conference call with investors, Wells Fargo Chief Executive Tim Sloan said he now expects Wells Fargo will operate under the Federal Reserve’s restraints through the end of 2019. The bank recently had been expecting those restraints to come off the middle of this year.

Wells Fargo, which is the biggest U.S. mortgage lender, posted revenue of $25.26 billion in the period. Its revenue net of interest expense was $20.98 billion, which also missed forecasts. Analysts were looking for Wells to earn $21.74 billion in revenue.

Wells Fargo’s stock fell 2.1 percent to $47.31.

© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.