Wells Fargo & Co is facing record fines for fraudulent lending actions. The nation’s top consumer watchdog, Mick Mulvaney, is cracking down on the bank and arguing the company could owe at least $1 billion in punitive actions.
Wells Fargo banking institution has been found to be conducting illicit practices. For abuses involving auto insurance and mortgage lending, the bank could be fined as little as several hundred million dollars.
Mulvaney, who is the head of the Consumer Financial Protection Bureau (CFPB), is set to enact his first set of fines and penalties. Appointed in November 2017, Mulvaney’s first few months were marred by political infighting.
With the power of the deep state eroding, Mulvaney is finally able to carry out the will of the president. Trump vowed to enact harsh penalties against the nation’s third-largest bank during the presidential campaign of 2016.
After Mulvaney was forced to declare a hiatus on the Wells Fargo investigation, President Trump echoed his promise in December to penalize Wells Fargo for their many infractions and flagrant abuse of the law.
In September of 2016, a nationwide scandal was uncovered involving the shady business dealings of Wells Fargo. Once the phony accounts scandal came to light, the Consumer Financial Protection Bureau slapped Wells Fargo on the wrist with $100 million in fines.
While Wells Fargo denies any wrongdoing, millions of checking, savings, and credit card accounts were opened. The fraudulent accounts were never authorized by customers.
The penalties incurred in 2016 remain the steepest fines issued by the CFPB to date.
The Consumer Financial Protection Bureau along with the Office of the Comptroller of the Currency (OCC), responsible for regulating the day to day operations of banks, are ready to enact sanctions against Wells Fargo. Wells Fargo has been forcing customers to pay for superfluous auto insurance plans and permitting bankers to collect the commission.
As well as the illegal auto insurance policies, the CFPB and the OCC have been investigating the bank for wrongfully adding charges to mortgage borrowers. Discriminating strongly against customers with poor credit scores, the bank is facing up to a billion dollars in penalties.
Wells Fargo has been bullying insurance borrowers with low credit scores to opt into a “force-place” insurance policy. An Insurance plan mandated by the lender, the bank would also target people who did not originally secure a loan through the bank.
Wells Fargo also admitted that clients with high credit scores were not subject to the predatory lending practices. Choosing not to monitor certain customers, the bank concedes to participating in discriminatory actions.
Lawyers have been debating if Wells Fargo should face additional fines for the uneven treatment of customers.
Mick Mulvaney is looking to impose fines so massive, the bank will be deterred from committing fraud again in the future.
Although Settlements have not yet been reached, sources familiar with the matter suggest Mulvaney is looking to cement his image as a tough regulator. Tasked with enforcing financial protection laws, Mulvaney declared he looks to punish those who abuse the law.
While Mulvaney recognizes that the Consumer Financial Protection Bureau has been overzealous in the past, Mulvaney is not looking to turn his agency into a police force.
Aligned with the views of President Trump, the financial watchdog agrees that regulations need to be diminished. Industry killing regulations need to be lessened, according to President Trump, and violators of the laws must face severe penalties.
Mulvaney will be testifying before Congress in two separate hearings on Wednesday and Thursday. Answering questions about the investigation, Mulvaney will be highlighting details about the settlement.
Wells Fargo is scheduled to submit their earnings report to lawmakers on Friday.
President Trump and his administration have been hard at work making America great again. Over a year into his administration, the president is still his keeping promises.
Fighting against the deep state and permanent bureaucracy, the president and his team are beginning to enact the policies to make America greater.
Mick Mulvaney is focused on regulation cutting policies which indicate a different direction for the federal agency than the one they had under Obama.
In a wave of anti-corruption policies, Mulvaney has been a driving force in the fight against the growing media monopolies. Helping to contrive the decision to block AT&T’s acquisition of Time Warner, Mulvaney has kept the American consumer’s best interest at hand.