Consumer Financial Protection Bureau - McGraw-Hill Introduction to Business

Bank of America Fined $150 Million by Federal Regulators

July 12, 2023

According to consumer watchdogs, for years Bank of America charged customers a variety of “junk fees” while also mishandling accounts. Not only did the financial giant withhold perks that were promised to some credit card holders, but it also double-charged overdraft fees and secretly opened cards in customers’ names without their knowledge. As a result, Bank of America received a $150 million fine from the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFPB), which Continue reading →

Banking, Regulation, Bank of America, Fraud, Consumer Financial Protection Bureau, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Wells Fargo Faces More Claims of Employee Fraud

September 7, 2017

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Last year we took a close look at how Wells Fargo fostered a culture of fraud that encouraged employees to open unauthorized credit and debit card accounts for customers. Investigators at the time estimated the bank had created more than 1.5 million fraudulent accounts, leading Wells Fargo to fire thousands of employees. Further inquiries from Congress also caused the company to replace managers and roll back executive pay as part of an overhaul of its retail division. The scandal Continue reading →

Banking, Regulation, Fraud, Wells Fargo, Ethics, Consumer Financial Protection Bureau

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 18: Financial Management, Bonus Chapter A: Business Law

Update: Wells Fargo Faces Backlash for Employee Fraud

September 29, 2016

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For the past few weeks the business world has been buzzing with outrage over the Wells Fargo banking scandal. Executives at the company likely hoped the worst was over after getting hit with a $185 million fine for allowing such widespread fraud to occur. But as Senator Elizabeth Warren showed last week, regulators and commentators are far from finished with the company. During a hearing with Wells Fargo CEO John Stumpf in front of the Senate Banking Committee, Senator Continue reading →

Banking, Regulation, Management, Fraud, Ethics, Wells Fargo, Consumer Financial Protection Bureau, Senator Elizabeth Warren, Executive Compensation

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Wells Fargo Fires More Than 5,000 Employees for Fraud

September 12, 2016

NickelsMcHughMcHugh

Last week regulators at the Consumer Financial Protection Bureau (CFPB) dropped a bombshell that surely shocked anyone with a bank account at Wells Fargo. According to the CFPB, employees at the bank created more than 1.5 million phony accounts over the years in order to fraudulently reach sales targets and earn fees. This “widespread” practice resulted in the recent firing of approximately 5,300 Wells Fargo employees. Regulators also hit the bank with a fine of $185 million along with $5 Continue reading →

Consumer Financial Protection Bureau, Ethics, Banking, Regulation, Fraud, Wells Fargo

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 7: Management & Leadership, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law