Wells Fargo in meltdown over unethical conduct

Wells Fargo CEO John G. Stumpf under the spotlight as bank castigated for unethical conductWells Fargo CEO John G. Stumpf grilled over unethical conduct

Last year, the city of Los Angeles sued Wells Fargo for unethical customer conduct, amid allegations that the bank had secretly opened unauthorised accounts on behalf of thousands of customers. The bank has since reached settlements totalling almost $200 million. At a September hearing before the House Financial Services Committee, Wells Fargo CEO John G. Stumpf was grilled over the bank’s transgressions and although he announced a pay forfeit of $41 million in pay and made a promise to drop the bank’s incentive programme, few of his interrogators were impressed. Read more…

Former Barclays bankers jailed for Libor fraud

Former Barclays traders handed lengthy jail terms for Libor riggingManipulating benchmark rates for gain

Four former Barclays bankers have been handed down jail time following a three-month trial at Southwark Crown Court in London, England. The charges related to conspiring to fraudulently rig global benchmark interest rates between 2005 and 2007 and the convictions represent a victory for the Serious Fraud Office (SFO), which has been pursuing investigations into the Libor scandal for some years but has achieved just one other successful prosecution against six acquittals. Two more Libor-fixing cases by other former Barclays bankers are still under investigation. Read more…

Chancellor Osborne initiates RBS sale

RBS sell-off

RBS sell-off underway

British Chancellor George Osborne has started the controversial process of transferring bailed-out bank RBS back to private ownership. The sell-off of a 5% stake in the bank – around £2bn-worth of shares – will reduce the taxpayers’ holding to under 75% and is the first sale of shares since the bank was rescued in 2008. The sell-off will result in a loss of around £1bn to the UK taxpayer. Read more…

Trouble at the top as Barclays oust boss

Barclays Chief Executive ousted in boardroom falling outBarclays Chief Exec ousted in boardroom falling out

British bank Barclays has announced that boss Antony Jenkins has been ousted from his job by a disgruntled board just three years after he was promoted to the job in the wake of the Libor scandal. Jenkins is being replaced for now by chairman John McFarland following unrest over the board’s desire for bigger cost cuts and more focus on the investment bank’s performance. Read more…