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| Trump Says Wells Fargo Fines Will Not Be Reduced | Trump Says Wells Fargo Fines Will Not Be Reduced |
| (3 days later) | |
| WASHINGTON — President Trump warned on Friday that Wells Fargo could face severe penalties for mistreatment of its customers and dismissed reports that the new leadership at the Consumer Financial Protection Bureau will go easy on banks. | WASHINGTON — President Trump warned on Friday that Wells Fargo could face severe penalties for mistreatment of its customers and dismissed reports that the new leadership at the Consumer Financial Protection Bureau will go easy on banks. |
| The comments, posted on Twitter, raised new doubts about the consumer agency’s independence and were a highly unusual foray by a president into an active investigation of a financial institution. Mr. Trump has previously accused the consumer protection agency of “trampling on capitalism,” and last month he installed Mick Mulvaney, who heads the White House’s Office of Management and Budget, as the acting director of the bureau after its longtime director resigned. | The comments, posted on Twitter, raised new doubts about the consumer agency’s independence and were a highly unusual foray by a president into an active investigation of a financial institution. Mr. Trump has previously accused the consumer protection agency of “trampling on capitalism,” and last month he installed Mick Mulvaney, who heads the White House’s Office of Management and Budget, as the acting director of the bureau after its longtime director resigned. |
| It was not immediately clear which “bad acts” the president was referencing, and a White House spokeswoman did not respond to a request for comment. Wells Fargo has been accused of wrongdoing in a series of lawsuits and enforcement actions related to consumer practices, including creating more than one million fraudulent accounts in clients’ names. Last year, the Consumer Financial Protection Bureau levied a record $100 million fine on the bank because of those banking practices. | It was not immediately clear which “bad acts” the president was referencing, and a White House spokeswoman did not respond to a request for comment. Wells Fargo has been accused of wrongdoing in a series of lawsuits and enforcement actions related to consumer practices, including creating more than one million fraudulent accounts in clients’ names. Last year, the Consumer Financial Protection Bureau levied a record $100 million fine on the bank because of those banking practices. |
| In October, the bank said it would offer refunds to home buyers who were improperly charged fees in order to obtain low-rate mortgages. It was reviewing nearly $100 million in fees to 110,000 customers that were potentially improper. | In October, the bank said it would offer refunds to home buyers who were improperly charged fees in order to obtain low-rate mortgages. It was reviewing nearly $100 million in fees to 110,000 customers that were potentially improper. |
| Mr. Trump’s tweet may have been referencing a Reuters report published on Thursday that said Mr. Mulvaney was reviewing the penalties for Wells Fargo’s mortgage abuses. The report was based on information from three anonymous sources. | Mr. Trump’s tweet may have been referencing a Reuters report published on Thursday that said Mr. Mulvaney was reviewing the penalties for Wells Fargo’s mortgage abuses. The report was based on information from three anonymous sources. |
| This year, the consumer bureau started an investigation into the mortgage lending practices at Wells Fargo. The investigation, according to two people familiar with it, centered on whether the bank incorrectly charged customers who wanted to lock in lower mortgage rates. | This year, the consumer bureau started an investigation into the mortgage lending practices at Wells Fargo. The investigation, according to two people familiar with it, centered on whether the bank incorrectly charged customers who wanted to lock in lower mortgage rates. |
| The inquiry was delayed amid a broader shake-up at the agency, according to the two people. The turmoil began last month when Mr. Trump appointed Mr. Mulvaney as the acting director of the agency after Richard Cordray resigned. | The inquiry was delayed amid a broader shake-up at the agency, according to the two people. The turmoil began last month when Mr. Trump appointed Mr. Mulvaney as the acting director of the agency after Richard Cordray resigned. |
| On his way out the door, Mr. Cordray named Leandra English as his acting deputy director and presumed acting director. After Mr. Trump tapped Mr. Mulvaney to the role, it created the unusual scenario of two people laying claim to the same post at the helm of a federal agency, with lawyers debating whether the Dodd-Frank Act, which created the consumer bureau, or the Federal Vacancies Reform Act provided the authoritative answer to who has the authority to install an acting director. | On his way out the door, Mr. Cordray named Leandra English as his acting deputy director and presumed acting director. After Mr. Trump tapped Mr. Mulvaney to the role, it created the unusual scenario of two people laying claim to the same post at the helm of a federal agency, with lawyers debating whether the Dodd-Frank Act, which created the consumer bureau, or the Federal Vacancies Reform Act provided the authoritative answer to who has the authority to install an acting director. |
| Thus far, Mr. Mulvaney has won out. | Thus far, Mr. Mulvaney has won out. |
| Inside the agency, Mr. Mulvaney, who has himself criticized the bureau, immediately instituted a number of changes. He halted hiring, froze all new rule-making and ordered a review of all active investigations. The Wells Fargo investigation was included in that broader review, the people said. But Mr. Mulvaney has not made any decision about how to proceed, they said. | Inside the agency, Mr. Mulvaney, who has himself criticized the bureau, immediately instituted a number of changes. He halted hiring, froze all new rule-making and ordered a review of all active investigations. The Wells Fargo investigation was included in that broader review, the people said. But Mr. Mulvaney has not made any decision about how to proceed, they said. |
| John Czwartacki, a senior adviser at the bureau who also serves as Mr. Mulvaney’s spokesman at the Office of Management and Budget, said he could not comment on pending enforcement matters. | John Czwartacki, a senior adviser at the bureau who also serves as Mr. Mulvaney’s spokesman at the Office of Management and Budget, said he could not comment on pending enforcement matters. |
| “As a matter of principle, acting Director Mulvaney shares the president’s firm commitment to punishing bad actors and protecting American consumers,” Mr. Czwartacki said. | “As a matter of principle, acting Director Mulvaney shares the president’s firm commitment to punishing bad actors and protecting American consumers,” Mr. Czwartacki said. |
| For those who have been concerned that Mr. Trump is infringing upon the bureau’s independence by installing Mr. Mulvaney, the assertion that penalties against Wells Fargo will not be dropped was more reason to worry. | For those who have been concerned that Mr. Trump is infringing upon the bureau’s independence by installing Mr. Mulvaney, the assertion that penalties against Wells Fargo will not be dropped was more reason to worry. |
| “If anyone needed more evidence of the serious threat to the independence of the Consumer Financial Protection Bureau from this administration, it appeared on Twitter this morning as Trump appeared to intervene directly into enforcement action,” said Lisa Donner, the executive director of Americans for Financial Reform, a progressive group that promotes stricter regulation of Wall Street. “A White House official like Mick Mulvaney shouldn’t be trying to run the consumer bureau.” | “If anyone needed more evidence of the serious threat to the independence of the Consumer Financial Protection Bureau from this administration, it appeared on Twitter this morning as Trump appeared to intervene directly into enforcement action,” said Lisa Donner, the executive director of Americans for Financial Reform, a progressive group that promotes stricter regulation of Wall Street. “A White House official like Mick Mulvaney shouldn’t be trying to run the consumer bureau.” |
| Americans for Financial Reform filed a brief in support of litigation to block Mr. Mulvaney’s appointment to temporarily lead the bureau. They have argued that he cannot preserve its independence while also maintaining his job as White House budget director. | |
| Tom Goyda, a Wells Fargo spokesman, declined to comment on Mr. Trump’s tweet. | Tom Goyda, a Wells Fargo spokesman, declined to comment on Mr. Trump’s tweet. |
| Shares of Wells Fargo were unfazed by the prospect of more penalties. The company’s stock price was up slightly in midday trading. | Shares of Wells Fargo were unfazed by the prospect of more penalties. The company’s stock price was up slightly in midday trading. |