Comptroller demands heads roll at Wells Fargo!

SAN FRANCISCO, Kalifornia (PNN) - July 28, 2017 - Wells Fargo is in boiling hot water… again.

One day after The New York Times reported the latest major scandal involving Warren Buffett's favorite bank, in which the bank was busted less than a year after its fraud cost the former CEO his job, revealing that the bank charged some 800,000 customers for auto insurance they did not need (with some still paying for it), the demands for resignation have arrived. In a statement from NYC Comptroller Scott Stringer, he demands that Wells Fargo must immediately jump-start necessary board change by replacing Chairman Stephen Sanger with a new independent chairperson following the latest mismanagement revelations.

In surprisingly harsh words, Stringer does not hold anything back against the worst performing bank stock today.

"This is a full-blown scandal - again. It’s unbelievable, outrageous, sad, and yet quintessential Wells Fargo. This isn’t just a corporate debacle. It’s caused real human harm. It’s reflective of a system that Amerikans feel is rigged against the little guy, and sadly symbolic of a culture that puts short-term profits ahead of creating sustainable value for shareowners. Everyday families have suffered and tens of millions of hard-earned dollars were stripped from unsuspecting Amerikans, many of whom are struggling just to get by. In the end, shareowners ultimately suffer the long-term consequences.

He also demands that the Wells Fargo Board must immediately disclose the circumstances to investors. "We need to know what the Board knew and when it knew it and how executives are being held accountable. We need to know what the Board knew and when it knew it and how executives are being held accountable. While we appreciate that these findings emanated from a report the company itself launched, full transparency and accountability are non-negotiable.”

Meanwhile, realizing that the second round of congressional hearings are imminent, the bank promptly pulled off the best apology it could. Wells Fargo began examining the way its auto lending unit enrolled borrowers into insurance policies a year ago, but did not plan to disclose problems it uncovered until it was ready to issue reimbursements to affected customers, its head of consumer lending said.

Franklin Codel said the business started noticing elevated customer complaint volumes in July 2016. It quickly suspended its auto collateral protection insurance (CPI) program and escalated issues to senior management, the Board and regulators, he said.

"The problem with disclosing to the marketplace today or several months ago is customers start calling and asking when they're going to get their money," said Codel.

But of course, why would Wells Fargo lie about something that reads like clear fraud? As for customers asking for money, the total amount demanded - and paid out - is about to get much higher.

Finally, we wonder if and when Warren Buffett, whose choice it was to keep the current Board after last year's scandal, will have something to say about this latest fraud at Amerika's largest mortgage lender.