The Advisors' Blog

– Broc Romanek

Here’s an excerpt from this Bloomberg article:

The lender’s turmoil over fake accounts, fees that shouldn’t have been charged and thousands of firings comes at a bad time. It created an awkward backdrop for House Republicans this week, as some of them hyped a bill that would repeal much of the Dodd-Frank Act. Wells Fargo’s settlement with regulators also emerged just as banks are arguing that a proposed pay rule meant to rein in excessively risky behavior went way too far.

Facing allegations that demanding sales targets incentivized employees to break the law, Wells Fargo’s conduct in many ways underscores exactly what the Federal Reserve and other agencies were trying to tackle in April when they issued their proposal on Wall Street compensation. In addition to forcing executives to wait longer before they can spend their bonuses, it says big banks would have as long as seven years to take back pay from employees tied to major misconduct or enforcement actions, even if the bonus is already vested or the person no longer works for the firm.