|► Reg-you-lay-shuns killed 5,000 Wells Fargo jobs|
Reg-you-lay-shuns killed 5,000 Wells Fargo jobs
Several years after the financial meltdown that took place during the Bush administration, Congress passed the Dodd-Frank Wall Reform and Consumer Protection Act, which Obama signed into law in July 2010.
In September 2010, Obama appointed Elizabeth Warren (elected to U.S. Senate in Nov 2013) Assistant to the President and Special Advisor to the Secretary of the Treasury on Consumer Financial Protection Bureau to set up the new agency.
A couple of years after the agency was set up, it was discovered that employees at Wells Fargo Banks were setting up phony accounts in the name of its customers and charging the clients fees for the sham accounts. None of the customers were aware of these fraudulent activities at the time they were taking place.
Wells Fargo provided a financial incentive to its employees to create additional accounts for existing customer. This policy was the primary engine for the massive frauds that would occur for several years.
The only reason that Wells Fargo got busted was due to the Consumer Protection Bureau that Sen. Warren created after being appointed by Obama. After being busted, Wells Fargo fired 5,000 employees who were incentivized to defraud its customers.
In truth, had it not been for the job-killing reg-you-lay-shuns foisted on Wall Street and the Banking Industry by left-wing zealots like Sen. Warren and Obama, the 5,000 Wells Fargo employees would still have their jobs.
The incoming Trump administration and its allies in the Senate and House are hellbent on repealing the Dodd-Frank Wall Street/Banking reg-you-lay-shuns, which they claim are job killers.
Well, in this instance the apologists for Wall Street are right and we have 5,000 victims of these unnecessary reg-you-lay-shuns to prove it.
And lastly, it isn’t the government’s business to look out for customers of the banking industry to make sure they aren’t being cheated. I’m confident when the Dodd-Frank rules are repealed that we can trust big banks to police themselves and if they don’t they can be relied on to self-report themselves to the proper authorities.