Subprime Lending News 7/19/17:
Banking scandals abound at home and abroad, and an Illinois man heads to prison for payday loan robberies.
By Caroline Thompson
The Fed slaps a multi-million dollar fine on a French national bank, Quicken Loans loses a lawsuit, and even more Wells Fargo drama graces your Wednesday afternoon subprime news roundup!
Wells Fargo moves to sell off more assets in wake of (multiple) scandals.
Last month, Wells Fargo announced the sale of its commercial subsidiaries and shareholder-services, and it looks like the San Francisco-based bank is looking to continue shedding even more company divisions in order to operate on a smaller, more streamlined level. Over the past few months, multiple scandals have rocked the bank, and experts say this move is likely an attempt on the part of the bank to reorder its priorities. Recently appointed Wells Fargo Chief Executive Timothy Sloan said in an earnings call this week that the company was looking to simplify their business: “For those businesses that we don’t believe are as core to our platform, but [also] maybe they can grow better in the hands of others, we’ve decided to exit those,” Sloan said. “If something doesn’t fit, we’ll move on.”
US Federal Reserve hits French investment bank BNP Paribas with $246 million fee.
Citing “unsafe and unsound” foreign exchange practices, the US Federal Reserve has issued more than $2 billion in fees against seven international banks that were involved in a currency rigging scandal. According to the Fed, the banks in question, which include Barclays, JP Morgan Chase, Deutsche Bank, the Royal Bank of Scotland and BNP Paribas, had traders in online chat rooms share information about currency bids “without adequate oversight from their banks.” This is the second multi-million dollar fee BNP Paribas has been slapped with in the space of two months. In May, the bank agreed to pay New York state regulators $350 million for similar charges of foreign currency manipulation.
Woodstock, Illinois man sentenced to six years in prison for bank and payday loan store robberies.
48-year old Shawn M. Rank was sentenced on Monday to 70 months in prison for his involvement in a series of 2016 Illinois robberies of banks and payday loan stores. Rank pleaded guilty to robbing Heartland Bank and Trust Co in Genoa, the Cash Store and the Alpine Bank in Belvidere, and the Harvard Savings Bank in Harvard. He used a BB gun to threaten tellers and cashiers over a five month period, from January to June 2016. In addition to prison time, Rank has also been ordered to pay $6,972 in restitution.