Tuesday, August 28, 2012

Well Fargo fires worker for incident 49 years ago

There are lots of reasons to dislike Wells Fargo: illegal foreclosures, illegal subprime loans, illegal discrimination, to name a few. The Des Moines Register just came up with another one.

The bank fired Richard Eggers, a 68-year-old Vietnam veteran, from his $29,795-a-year job for  putting a cardboard cutout of a dime in a washing machine in Carlisle, Iowa, on Feb. 2, 1963.

Reports the Register:
Big banks have been firing low-level employees like Eggers since the issuance of new federal banking employment guidelines in May 2011 and new mortgage employment guidelines in February. 
The tougher standards are meant to weed out executives and mid-level bank employees guilty of transactional crimes, like identity fraud or mortgage fraud, but they are being applied across-the-board thanks to $1-million-a day fines for noncompliance. 
Banks have fired thousands of workers nationally because of the rules, said Natasha Buchanan, an attorney with Higbee & Associates in Santa Ana, Calif., who has helped some of the banking workers regain their eligibility to be employed. 
“Banks are afraid of the FDIC and the penalties they could face,” Buchanan said. 
The regulatory rules forbid the employment of anyone convicted of a crime involving dishonesty, breach of trust or money laundering. Before the guidelines were changed, banks widely interpreted the rules to exclude minor traffic offenses and some other misdemeanor arrests.
You can bet the people at the top don't get fired. They just get golden parachutes, usually after they've settled with the U.S. Department of Justice for massive financial crimes -- without admitting wrongdoing. NJ.com reminds us:
The pension assets of Wells Fargo CEO John Stumpf stand at $16 million, according to the company’s proxy statement. The vast majority of these assets came from a special plan available only to the company’s top executives. As high as Stumpf’s retirement assets have soared, they’re exceeded by those of another Wells Fargo executive. Mark Oman oversees the company’s consumer lending division, where most of its ill-fated subprime loans were made and where many customers have lost their homes to foreclosure. His retirement assets top $17 million