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Home / Business / Mulvaney's first punishment at CFPB is the second largest in the history of the agency

Mulvaney's first punishment at CFPB is the second largest in the history of the agency





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Management and Budget Director Mick Mulvaney

The $ 1

billion fine imposed by the Consumer Protection Bureau is the second highest in history since Mick Mulvaney took over the agency the Agency

Wells Fargo & Co.

WFC, + 2.18%

agreed on Friday to pay a $ 1 billion fine to the Financial Supervisory Bureau and the Office of the Comptroller of the currency for mortgages and Harm car loaners. Technically, the CFPB fined US $ 1 billion for Wells Fargo and OCC fined US $ 500 million, but CFPB awarded Wells Fargo a credit for the OCC 500 million Dollar.

Read: Here's what Wells Fargo did to set off a $ 1 billion fine

For the CFPB, the fine is only $ 2.125 billion against Ocwen Financial Corporation

OCN, -0.49%

and his loan service arm for mortgage service violations, which allegedly put thousands of people across the country at risk of losing their homes.

Organization Fine (In millions) Date Injury
Ocwen Finance and Lending $ 2,125 12/19/2013 Consumer protection / Mortgage lapses
Wells Fargo $ 1,000 4/20/2017 Consumer Protection / Mortgage Abuse
Bank of America, NA $ 747 9.04.2014 Consumer Protection / Banking
Citibank NA $ 733 [19659010] 21.07.2015 Consumer Protection / Credit Card
Sun Trust Mortgage $ 550 6/17/2014 Consumer Protection / Mortgage Abuse
Corinthian Colleges [19659010] $ 531.2 19659010] 28.10.2015 Consumer Protection / Abuse of Student Loans
JPMorgan Chase and Chase Bank USA, NA $ 329 9/19/2013 Consumer Protection / Credit Card
GE Capital Retail Bank, now known as Synchrony $ 225 6/19/2014 Consumer Protection / Credit Card
Discover Bank $ 214 9/24/2012 Consumer Protection / Credit Card
JP Morgan Chase $ 186 [ConsumerProtection/CreditCard
Morgan Drexen $ 172.9 3/18/2016 Consumer Protection
Capital One Bank $ 165 18.07 .2012 Consumer Protection / Credit Card
Wells Fargo Bank $ 100 9/8/2016 Banking / Consumer Protection
American Express $ 99.1 01.10.2012 Consumer Protection / Credit Card

This is not the first time that CFPB has punished Wells Fargo. In 2016, CFPB imposed a fine of $ 100 million on the perennial, systemic and illegal practice of opening unauthorized deposit and credit card accounts. The activity was the result of a culture in Wells Fargo that, according to the CFPB Consent Regulation, provided aggressive sales goals and incentives that encouraged employees to increase sales by secretly opening more than two million accounts. Wells Fargo was asked to pay full compensation to all victims in addition to the fine.

Read: Where was KPMG, Wells Fargo's auditor, while the fun business was going on?

Wells Fargo is not the only repeat offender.

JPMorgan Chase

JPM, + 0.04%

and Citigroup

C, -0.21%

are tied because they each received four fines from the CFPB.

American Express

AXP, -1.55%

was the target of three CFPB credit card enforcement efforts between 2012 and 2017 for a total of $ 264.2 million.

The CFPB was officially launched by the Dodd-Frank Act in 2010 and officially began work in mid-2011, but it was not until mid-2013 when the Senate endorsed Richard Cordray as director that he was no longer employed.

Mulvaney, also director of the Office of Management and Budget, was appointed President Trump to be CFPB Director after Cordray resigned in November

This was the first CFPB enforcement action under Mulvaney's leadership. Mulvaney was criticized by Democrats both in the House and in the Senate for his responsibility at a hearing this month.

It is also the only bank that Trump has criticized by name.

"Well, what the President has tweeted, if that's exactly, I do not have any reason to think it's not exactly what the law says, and we did that here today, "said Mulvaney in an interview with Fox Business Network.

"But to get the actual dollar amount, we could not have recovered much if we brought this matter to court, maybe." "Could we have recovered again? Possibly, that's the nature of a settlement." No, I do not think people in Wells think that a billion dollars is a small amount of money, I do not think anyone should hold a billion dollars for a small amount of money, so this is a historically large collection and we are Very happy with the result, "said Mulvaney.

Bartlett Naylor, an advocate of fiscal policy with the nonprofit organization Public Citizen, was less fortunate. "Shareholders who will pay the bill for this fine have not grasped, overlooked and concealed this massive fraud." Wells Fargo executives have said, "Naylor said in a statement. "Meanwhile, Republican corporate tax is more than offsetting this fine, and the company reportedly posted $ 3.35 billion in profits from the new bill."

The $ 500 million fine imposed by the OCC will be passed to the Penalty of CFPB counted. The OCC binds the fine of the Banking Supervision Authority against HSBC in 2012, before the impact of inflation

HSBC, + 0.53%

for banking secrecy and anti-money laundering compliance violations.


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