Wrote This Article On Thursday And An Announcement Came Out On Friday
It is a done deal.
After all the troubles that they have had over the recent years, they are now in “early stage discussions” with the Consumer Financial Protection Bureau over possible new penalties. These problems stem from their practice of charging for unnecessary insurance costs levied on auto insurance policy holders and charges for mortgage extensions charged to borrowers when it was the fault of the bank.
Now, If You Have Been Following The Practices Of The CFPB
Recently, they have been making some changes which favor lenders over borrowers. Therefore, many people believe that any penalty for Wells would not be major. However, it is rumored that President Donald Trump, Mick Mulvaney and others are using the B word as in $1,000,000,000.00 for this penalty.
That Sure Sounds Like A Lot To Me
And, it is one of the highest assessments that has been made by any regulators. But it should be put into perspective. In the first quarter of 2018 Wells Fargo had a rather good time with revenue of $21.9B and $5.9B in profits. That would be about $2B a month net. So the penalty would be about half a month’s income. If a person grosses $120,000.00 per year or $10,000.00 a month, the fine would be $5,000.00. Not good, but in the big scheme of things not devastating. Too big to fail and too big to jail. But let’s regulate the banks less, we can trust Keating, Milken, Countrywide and others.