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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


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I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet,

Lobo
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Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, Empty Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet,

Post by Lobo Wed Sep 14, 2016 6:16 pm

Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, while the bank cuts sales goals in wake of $185m fine

  • Buffett's Berkshire Hathaway Inc owns a sizable stake in Wells Fargo
  • But 2m Wells Fargo accounts have been opened without client permission
  • Facing a $185m fine, the bank's stocks have tumbled, losing Buffett $1.4b
  • The accounts were opened because of unreasonably high sales goals
  • Those goals will now be slashed by January 1, the bank promised
  • As well as the fine, the bank must also pay restitution to customers 

By Associated Press and James Wilkinson For Dailymail.com
Published: 12:55 EST, 13 September 2016 | Updated: 12:35 EST, 14 September 2016
Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, 3853EB2300000578-3787292-Tumbling_Warren_Buffett_owner_of_Berkshire_Hathaway_Inc_which_ow-a-86_1473832230645

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Tumbling: Warren Buffett, owner of Berkshire Hathaway Inc, which owns many shares in Wells Fargo, lost $1.4b Tuesday as the bank's shares tumbled in the wake of a scandal
Warren Buffett lost $1.4billion Tuesday as revelations that more than 2million Wells Fargo accounts had been opened by staff without their clients' permission saw its shares drop.
Buffett, 86, saw his net worth drop as his holding company, Berkshire Hathaway Inc, which owns a sizeble stake in Wells Fargo dropped 2 per cent, Bloomberg reported.
Meanwhile, the bank announced that it would cut its aggressive product sales goals for retail bankers as it stares down the twin barrels of a $185million fine and a severely hurt reputation.
Buffett, who remains the world's fourth richest man with a personal wealth of $65.8billion, has long enthused about the safety and surety of Wells Fargo.
In 2009, he enthused: 'Wells Fargo ... you can't take away Wells' customer base. It grows quarter by quarter. And what you make money off of is customers.'
Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, 3853EB6400000578-3787292-Fined_Wells_Fargo_employees_opened_more_than_2m_accounts_without-a-85_1473832189780

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Fined: Wells Fargo employees opened more than 2m accounts without client permission due to unreasonably high sales targets and has been fined $185m; its shares fell Tuesday




But many of those customers will have been left cold by the discovery that they had bank and credit card accounts opened under their name - and money moved to those accounts - without their permission.
Customers were not told about debit cards and PINs that were created under their names.
In some cases, fake email addresses were used to sign customers up for online banking services
For Buffett, that means he lost more than anyone else on Bloomberg's Billionaires Index on Tuesday. 
And for Wells Fargo, it means dropping to second place on the rankings of the world's most valuable banks, behind JPMorgan Chase & Co, after falling more than 5.9 per cent since Thursday, when the $185million fine was announced.
It must pay $100million to the Consumer Financial Protection Bureau, $35million to the Office of the Comptroller of the Currency and $50million to the City and County of Los Angeles. It will also pay restitution to affected customers.
Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, 4Nb9l7W3r1ba33c6463f775bbc83-3787292-FILE_In_this_July_14_2014_file_photo_a_man_passes_by_a_Wells_Far-a-66_1473825957950

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Secret: Customers were not told about debit cards that had been opened up in their names. In some cases staff used fake email accounts to secretly register users for online banking 
The fake accounts emerged as the result of Wells Fargo's fearsomely - and unrealistically - high goals for its sales staff.
Every quarter the bank highlights a 'cross-sale ratio,' a metric used only by WElls that shows the number of products the bank sells per customer.
That's usually around six, but the bank introduced a program called 'Go for Gr-Eight' that pushed for an unattainable more-than-eight products per household.
Many employees had to cheat to meet those goals, to the point where it became widespread. Thousands of employees were fired for this type of conduct.
The sales goals will be eliminated by January 1, the San Francisco-based bank announced Tuesday.
That doesn't end the matter, though, as Wells Fargo's chief executive, John Stumpf, has been called to appear before the Senate Banking Committee next week to answer questions about the bank's sales practices. 
Warren Buffett loses $1.4billion in ONE DAY as Wells Fargo stocks plummet, 3853EB4A00000578-3787292-image-a-87_1473832237601

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Questioned: Wells Fargo's chief executive, John Stumpf (pictured) will appear before the Senate Banking Committee next week to answer questions about the bank's sales practices
Wells Fargo was well known for its aggressive sales goals.
But it was also regarded as a well-run, tightly managed firm that did not get into the poisonous behavior of its Wall Street counterparts that led to the mortgage bubble and financial crisis.
That reputation has suffered under the recent revelations, which were first brought to light by a Los Angeles Times investigation in 2013.
Wells Fargo has said it regrets 'any instances where customers may have received a product that they did not request' and that it has refunded $2.6million in fees associated with products that were opened without authorization. 

Read more: http://www.dailymail.co.uk/news/article-3787292/Wells-Fargo-cutting-sales-goal-wake-hefty-fine.html#ixzz4KGqI4EgG
http://world.einnews.com/article/344703406/zwP58eiVTJ90TSWL
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