House Speaker Paul Ryan maligns the CFPB days after it discloses major fraud scandal at Wells Fargo Bank

So the GOP’s alleged boy genius, Ayn Rand fanboy Paul Ryan, “the zombie-eyed granny starver from the state of Wisconsin, ” recently posted this on Twitter.

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Note the date of this tweet: September 12, 2016. Matt O’Brien of the Washington Post mocks, And now, a case of really bad Republican timing.

Ryan’s tweet is just days after the Consumer Financial Protection Bureau (CFPB) scored one of the biggest consumer fraud victories in its short history against a bankster of Wall Street. 5,300 Wells Fargo employees fired over 2 million phony accounts:

Everyone hates paying bank fees. But imagine paying fees on a ghost account you didn’t even sign up for.

That’s exactly what happened to Wells Fargo customers nationwide.

On Thursday, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts — without their customers knowing it — since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.

The scope of the scandal is shocking. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened over 1.5 million deposit accounts that may not have been authorized.

The way it worked was that employees moved funds from customers’ existing accounts into newly-created ones without their knowledge or consent, regulators say. The CFPB described this practice as “widespread.”

Customers were being charged for insufficient funds or overdraft fees — because there wasn’t enough money in their original accounts.

Additionally, Wells Fargo employees also submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Roughly 14,000 of those accounts incurred over $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.

The CFPB said Wells Fargo will pay “full restitutions to all victims.”

So the only possible takeaway from this tweet is that the Speaker of the House Paul Ryan, and his Tea-Publican Congress, want to repeal the CFPB because it protected consumers against this bankster of Wall Street in what is the  largest case of bankster fraud since The Subprime Swindle and the Foreclosure Fraud Cover-Up. This is your Tea-Publican Party, folks.

By the way, Ryan’s Tea-Publican Congress just voted to roll back Dodd-Frank regulations of Wall Street as well. A Dodd-Frank Rollback Bill Clears a House Committee. These evil GOP bastards are shameless in their lickspittle service to their masters, the banksters of Wall Street.

Today the U.S. Justice Department issued subpoenas to Wells Fargo over the opening of millions of fake accounts at the bank. U.S. opens investigation into Wells Fargo fake accounts scandal:

The Department of Justice has issued subpoenas to Wells Fargo over the opening of millions of fake accounts at the bank, a U.S. official told CNN.

Multiple U.S. attorneys’ offices are investigating, the source said.

The investigation is still in the early stages and it’s not clear if it will lead to charges.

Wells Fargo declined to comment. The news was reported earlier by The Wall Street Journal.

News of the federal investigation comes less than a week after Wells Fargo was slapped with a $185 million fine by regulators for creating over two million fake bank and credit cards. Wells Fargo also said it had fired 5,300 people over the past few years due to improper sales tactics.

The shocking scandal has rocked the banking industry and raised serious questions about the sales culture that led to the opening of unauthorized accounts. Employees told CNNMoney they experienced relentless pressure and wildly unrealistic sales targets. The pressure cooker environment is also described in a lawsuit filed by Los Angeles against Wells Fargo in May 2015.

On top of the federal investigation, Wells Fargo is set to be grilled by Senator Elizabeth Warrenthe creator of the CFPB — and her colleagues on the Senate banking committee on September 20. Wells Fargo CEO John Stumpf has accepted an invitation to testify at the hearing.

Rep. Elijah Cummings, the ranking member of the powerful House Oversight committee, has also requested Wells Fargo turn over documents about its sales tactics and other material.

Stumpf, in his first televised comments since the scandal broke, said he’s “sorry” for the fake accounts that were opened but also indicated he has no plans to resign. “The best thing I can do is lead this company,” the Wells Fargo CEO told CNBC.

I’m innocent I tell ya!” it was those 5.300 employees who were to blame, “I know nothing!” (the Sargeant Schultz defense). Wells Fargo CEO blames employees for fraud.

I’m sorry. This fraud was widespread and appears to have been a systematic practice at Wells Fargo, i.e., 5,300 employees, all of whom should be criminally charged along with their superiors and management employees who had knowledge that this practice was going on. There is no way that top management did not know this was happening.

Somebody’s going to emergency, somebody’s going to jail.”

20 responses to “House Speaker Paul Ryan maligns the CFPB days after it discloses major fraud scandal at Wells Fargo Bank

  1. Elizabeth Warren is now calling on the FBI to release their investigations from the 2008 financial crisis.

    http://www.huffingtonpost.com/entry/elizabeth-warren-letter-to-fbi-2008-wall-street-investigations_us_57dae09fe4b0071a6e05dc53?section=&

  2. CFPB: “If you’re worried about falling behind on your mortgage, it’s smart to do something about it right away. Talking to your servicer about your situation won’t damage your credit, and it lets your servicer know that you take your financial responsibilities seriously.”

    I requested guidance from Wells Fargo(WF) about my interest rate increase. This simple request has turned into a fight for honesty and having integrity when there’s a mistake. WF has fraudulently destroyed my 800+ credit score, discriminated against me, and broken key loan servicing laws. All of the allegations against WF are supported by my documents at:

    http://www.wffraud.com/wf-fraud.html

    Please investigate my plight with Wells Fargo wholeheartedly, they’re still hurting me and refuse to stop.

  3. Senator John Kavanagh

    Four ad hominem attacks in the post’s first sentence. You must have been king of the schoolyard in grade school.

  4. For Sure Not Tom

    You forgot the part where Wells gave consumer banking chief Carrie Tolstedt a $124.6 million goodbye payday.

    She’s the one who’s leaving after overseeing the group that committed the theft.

    She’s getting a Golden Parachute worth almost as much as the fine.

    How is it big banks are still big? An remain un-jailed? How is it that GOTeaP folks justify their support for these criminals?

    The GOTeaP is a scam.

  5. Back in 2014, I was one of those people that Wells Fargo opened a bogus accout and a credit card for. I noticed almost immediately because I pay close attention to my finances and the institutions that services my accounts. I contacted them twice and complained about it with no action taking place, so I had my attorneys write a lettere threatening them with a lawsuit, and they finally apologized for the “mistake”, closed the account and the credit card, and refunded all the fees they had collected. By way of apology they deposited $100 in my genuine account.

    I had my attorneys research to whom they should be reported and found dozens of agencies claiming jurisdiction over such cases. We finally decided on the Consumer Financial Protection Bureau because its charter seemed most appropriate and we filed a complaint through my attorney. About three months later I received a “To Whom It May Concern” type, non-commital form letter acknowledging they received the complaint and nothing more.

    The net result was I spent $850 in attornet fees to have some bureaucrat crank out a form letter a few months later. Given the huge amount of overlap in jurisdiction in deciding who to send the complaint to, and then being given the cold shoulder once I actually tried (and, purely by accident, found the correct agency/bureau with the assistance of two attorneys) to report it, I can see why people give up trying. I can also see why financial institutions get away with such skullduggery for so long.

    And WHY is the government getting the $185,000,000 fine? Shouldn’t that be given to the consumers who lost money and as compensation for their inconvenience? I see things like this happening all the time and the only benificiaries are the government who collect a big fat fine and the institutions perpetrating the crime who manage to get of with a slap on the wrist. You can be guaranteed that Wells Fargo will come out of this mess with a profit…

    • For Sure Not Tom

      Actually, Wells is supposed to make you whole. Contact your bank.

      Wells makes enough so they don’t care, but you get your money back, a little gratitude to the CFPB would be nice.

      And a nice thank you to Elizabeth Warren for fighting to create the CFPB wouldn’t hurt.

      • “Actually, Wells is supposed to make you whole. Contact your bank.”

        I will do that. Thank you for the heads up. I guess I should do more research rather than just complaining…

        “Wells makes enough so they don’t care, but you get your money back, a little gratitude to the CFPB would be nice.”

        I am not an ingrate, Not Tom. The CFPB did a good job in nailing Wells Fargo for this. But I do resent the cold shoulder that was turned to me when I reported this situation a couple of years ago. I also was sympathizing with people who approach the Federal Government and try and file a complaint on something. It is a huge entity with conflicting areas of responsibility and jurisdiction. It is a gigantic maze and there doesn’t seem to ba any way to find your way to the correct agency.

        “And a nice thank you to Elizabeth Warren for fighting to create the CFPB wouldn’t hurt.”

        Elizabeth Warren had a good heart for creating the CFPB, but in doing so she simply created another agency that claimed jurisdiction over the same turf claimed by at least 11 other agencies. She was probably not aware of that. Do we really need such redundancies in government? Yes, her CFPB is the one that broke this scandal, but with so many agencies with oversite, why did it take 5 years? I know there were many people who had to be filing complaints because the scam was so obvious if you went on line and looked at your accounts. You suddenly had accounts you had never seen before show up! I couldn’t be the only one that complained. So, again, with complaints coming in making it so obvious what was going on, why 5 years?

    • From what I understand, the $185 million fine is only part of what Wells Fargo has to pay out. They also have to pay out to all of the customers they defrauded through the unauthorized opened accounts. The CFPB did the job it was created to do, even if all received from them was a form letter. The Congressional Republicans and their financial industry buddies would rather see the CFPB destroyed.