STAGECOACH

I was going to start off with how clever I was in scooping the DeutscheBank story last week (OK, OK, it was $14 million not $15 million) but while that further little foray into the shakedown business by the Feds is a worthwhile subject, what starts tomorrow could even overshadow what is surely going to be a non-event Fed meeting later in the week.  John Stumpf, the CEO of Wells Fargo will be in D.C getting started on being questioned by what will probably add up to everybody in the Senate and the House of Representatives and then some. If an execution were to the be the result I would hope it be done in Public pour l'encouragement des autres as was suggested by Voltaire.  It would be well-deserved.

Now I admit to being sympathetic towards the banking community from time to time--or more than that to be honest--but what happened at Wells under Stumpf's watch has to be one of the most disgraceful episodes I have ever witnessed and the reaction to it by Stumpf and the bank to be far and away THE stupidest in recorded history.  Might I also add immediately that if he claims that he was unaware of the actions of his associates in my opinion he is a flat out liar and thrown into a Stagecoach headed directly to the hoosegow.  How the hell this could go on for FIVE years and he not know enough about it to stop it RIGHT NOW is impossible to believe.

In addition to the millions who were defrauded...I think that is the only explanation of the events that is fully descriptive...and the 5600 employees who have been fired, some of whom were earning $11 and hour, this fool and his organization have created an opportunity for the political hacks in Washing ton to impose even more crippling regulation upon the industry and lay waste to the good guys in the  who are trying, really trying to make it better and have made real strides in that direction like Mike and Mike at Citigroup and even Jamie the Greek who, to be honest, hasn't really made a wrong step in ten years despite what the Tarulos and Crazy Lizzys of this world would have you believe.  Saints, no, but guys trying to do the job in the right way, yes.

What I fail to understand is how Wells was allowed to escape with a fine of $176 million?  The only thing more inexplicable than that was the $900 million leveled against General Motors for killing 124 people while $15 billion is being talked about in the case of VW for faking emission numbers.  Is there an Obama Motors connection at work with Wells?  I hope someone asks that question.

Last week it was revealed that the person in charge of "community banking" for Wells had announced her resignation effective at the end of this year with a Bye-Bye of $127 million.  Today, it was revealed that the head of risk management was taking an indefinite leave of absence.  That is not good --not good at all.  If it were to be shown that there was collusion.....Both were women by the way; no glass ceiling at Wells I guess.  Equal opportunity for all crooks.

OK, I've had my say and will wait until more of the facts come out in whatever time is left after the moralistic speeches of the politicians.  I'm a touch would up about this as you can imagine.  I guess it's because I am of a different time when your word was your bond and you didn't kick the little people.  No more, I guess.  And we are not better for it.