Hillary Clinton's 3-Point Plan To Fix Our Financial System
Democratic presidential nominee Hilary Clinton shared an open letter on her website regarding the banking industry, specifically addressed to Wells Fargo & Co (NYSE: WFC) customers. The letter focused upon the recent fraud accusation the company is undergoing and its implications within the greater market.
"In America, we have faith that when we open up a checking account, we aren't opening ourselves up to being scammed," wrote Clinton in the letter.
Clinton said that she was "deeply disturbed" by the illegal practices Wells Fargo had been utilizing for years after news broke that the bank was opening up fake accounts for its customers.
With Wells Fargo's CEO set to appear in front of Congress Thursday, Clinton said, "He owes all of you a clear explanation as to how this happened under his watch."
How To Fix A Financial System In 3 'Easy' Steps
In response, Clinton offered a three-point plan to fix the financial system.
Her first point was to defend the consumer financial protection bureau, the agency that assessed Wells Fargo its highest penalty ever, $185 million, for opening 2 million fake accounts.
Secondly, she said real consequences are needed when firms on Wall Street break the law. In July, Wells Fargo's top consumer banking executive Carrie Tolstedt left the bank with $124.6 million in stock and options, to the outrage of many.
Lastly, she wrote said that no financial institution should be too big to manage, and she would implement safeguards to limit any bank from being too big to fail and risking our system. "If any bank can't be managed effectively, it should be broken up," said Clinton.
Wells Fargo CEO has put the blame on a "few bad apples," and 5,300 employees were fired when the news broke. Former Wells Fargo employees insist that it was not their fault but the high pressure sales targets the company put on its employees that caused the fraud.
"Bankers became so desperate to reach their sales goals to avoid being terminated, that they would ‘churn' accounts. This is when you close accounts and open up new ones for the same customer in order to manipulate the sales system," said a former employee quoted in a recent Fortune article.
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