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☆ Who's afraid of Wells Fargo?
▼ + stars: | 2022-12-20 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

New York CNN —Wells Fargo reached a $3.7 billion deal with regulators over the bank’s “widespread mismanagement” that allegedly hit more than 16 million consumer accounts. KEY CONTEXTSadly, all of this echoes earlier reports about Wells Fargo’s practices that have emerged since 2016, when its fake-accounts scandal made national headlines, my colleague Matt Egan writes. Wells Fargo workers ended up creating millions of bank accounts for customers without their knowledge. Chopra described Wells Fargo as a “repeat offender” and a “corporate recidivist,” adding that Tuesday’s fine is just an initial step toward holding the bank accountable. The web of scandals at Wells Fargo is massive, and after six years of fallout, a lot of folks aren’t convinced the bank can save itself.

Dec 20 (Reuters) - Wells Fargo & Co (WFC.N) agreed to pay $3.7 billion to settle charges from a U.S. consumer watchdog over widespread mismanagement of car loans, mortgages and bank accounts, the regulator said Tuesday. "Wells Fargo is a corporate recidivist that puts one-third of American households at risk of harm,” CFPB Director Rohit Chopra told journalists in a briefing. Shares of Wells Fargo were down less than 1% in late morning trading. Wells Fargo has faced multiple enforcement actions taken by the CFPB and other banking regulators for violations across the bank's business lines. Scharf became CEO in 2019, the fourth person to lead Wells Fargo since the scandal emerged.

☆ Wells Fargo ordered to pay $3.7 billion for ‘illegal activity’ including unjust foreclosures and vehicle repossessions
▼ + stars: | 2022-12-20 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —Federal regulators fined Wells Fargo $1.7 billion on Tuesday for “widespread mismanagement” over multiple years that harmed over 16 million consumer accounts. Chopra described Wells Fargo as a “repeat offender” and said Tuesday’s fine is just an “initial step” towards holding the bank accountable. That suggests Wells Fargo may not be out of the penalty box with regulators anytime soon. Those failures caused Wells Fargo to wrongfully repossess some borrowers’ vehicles, to improperly charge fees and interest and to fail to refund certain fees, regulators say. Regulators said Wells Fargo has also been ordered to pay almost $200 million in refunds to those harmed by the bank’s mortgage servicing accounts.

☆ Disney should spin off ESPN and ABC, analyst says
▼ + stars: | 2022-12-20 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

But one Wall Street analyst has an idea for how Disney could get back on track. Wells Fargo’s Steven Cahall thinks Disney should spin off cable sports giant ESPN and traditional TV network ABC… two slow-growth (and some would argue, dying) businesses. Cahall wrote in his report that “we think Bob Iger is returning to {Disney] ready to make big changes. ESPN, in theory, may have an easier time negotiating with sports leagues as part of a pure play media network. “We think ESPN and ABC are integrally linked as the broadcast [network] improves negotiations in sports rights, and we’re seeing more of those sports on both networks,” he wrote.

☆ How High Will CD Rates Go in 2023?
▼ + stars: | 2022-12-01 | by ( ) www.wsj.com time to read: +6 min

Whether or not CD rates will continue to rise in 2023 depends a lot on what the Fed does to fight inflation, with higher inflation likely higher interest rates. Where will CD rates go in 2023? There is no direct relationship between CD rates and those set by the Federal Reserve, since banks can offer whatever interest rates they wish. And that means that CD rates likely have a little room to rise, but not a whole lot. While CD rates continually shift, it’s now possible to find rates of between 4% and 5% from well-known institutions like Capital One, BMO Harris, Synchrony and more.

☆ Home prices are finally falling. But how low will they go?
▼ + stars: | 2022-10-22 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

From the 2006 peak to the 2012 trough, national home prices fell by 27%, according to S&P CoreLogic Case-Shiller Indices, which measures US home prices. Now they are coming down.”With mortgage rates more than doubling since the start of this year, the calculations for a homebuyer have changed considerably. They predict prices will rebound and rise again in 2024, with the median price ticking up 3.3% to 376,000 by the end of 2024. “If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly just as cooling inflation pressures boost real income growth. And Boise, Idaho, where prices surged nearly 60% during the pandemic, is already seeing annual declines, with prices falling 3.9% year over year in September, according to Zillow.

☆ Big U.S. banks shoulder first-world problems
▼ + stars: | 2022-10-14 | by ( John Foley | ) www.reuters.com time to read: +4 min

JPMorgan (JPM.N), Wells Fargo (WFC.N) and Citigroup (C.N) have what might be thought of as first-world problems. The big banks’ shares are down roughly 40% this year, while the S&P 500 Index (.SPX) is down just over 23%. JPMorgan’s earnings fell 17% year-on-year to $9.7 billion, but revenue increased 10% driven by a 22% rise in fixed-income trading revenue. Wells Fargo’s earnings fell 31%, as it also took a $2 billion charge to litigation, customer remediation and regulatory issues. Wells Fargo and JPMorgan both reported a 3% decline in deposits for the quarter ending Sept. 30, compared with the quarter ending in June.

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