's unauthorized accountsscandal remains in the spotlight, with the House Financial Services Committee'sinterrogation of Chairmanand CEO John Stumpf yesterday dominating headlines.
Similar to whathe said during his testimony before the Senate last week, Stumpf took blame for the scandal, while claimingthe company has done its part in firing 5,300 employees. He also mentioned thathe suggestedhis own clawback to the board, The WallStreet Journal reports.
During the hearing,which lasted more than four hours, Rep. Maxine Waters, D-Calif., also called forthe large-cap bank's break-up,MarketWatch reports.
In more newsrelated to Wells, California State Treasurer John Chiang sanctionedthe bank, which includes ordering the suspension of its investments by the Treasurer'soffice in all Wells Fargo securities. Oregon State Treasurer Ted Wheeler also announcedthat Oregon trust funds, which hold substantial shares of Wells Fargo, will pressfor managementstructure and executive compensation reforms.
Meanwhile, thebeleaguered bank's largest shareholder, Warren Buffett, told CNBC that he spokewith Stumpf for about five minutes and told him that the regulatory fine does not determinepublic reaction. Buffett also denied speaking to anyone else on the board, brushingoff reports that he was going around Stumpf.
In more banking news, U.S. Bank NA will pay $13.5 million — $11.9 million in civil penalties, the balanceto resolve Municipal Code violations — to resolve allegations that it allowed hundredsof foreclosed properties in Los Angeles to fall into disrepair, according to thewebsite of the Los Angeles city attorney. The settlement requires court approval.
Corpus Christi,Texas-based Charter Bankwill pay $165,820 as part of a settlementwith the U.S. Department of Justice to resolve allegations of discrimination.
Meanwhile, CristianMelej was named vice president and CFOof Hingham, Mass.-based Hingham Institutionfor Savings.
Julia Newtonstepped down as presidentand CEO of Forest Hill, Md.-based MBBancorp Inc. Philip Phillips is succeeding Newton.
Elsewhere, topay the $199 million SECsettlement and the $213.1 millionpenalty with the DOJ, Och-Ziff Capital Management Group LLC entered into a withcertain executive managing directors of the asset management company, including CEO and Chairman Daniel Och.
On the M&Afront, Redwood Capital and LD&A Jupiter merged to form Drake Star Partners, an independent and international investment bank focusing on the technology,media and communications sectors.
Effective tomorrow,Springleaf Financial is rebranding as OneMain,which was adopted by the combined company formed after the merger of specialty lenders OneMain Financial Holdingsand Springleaf Holdings Inc.
And in broker-dealer news, Nicholas Sheumack wasnamed president and co-CEOof Berkshire Capital Securities LLC.
In other parts of the world
Asia-Pacific:ADB to lend Bangladesh US$8B; Fedissues consent order to China AgBank
Middle East& Africa: New ratings for Iranianbanks; Kenyan rate cap boosts lending
The day ahead
Early morning futures indicators pointed to a mixed opening forthe U.S. market.
In Asia, the Hang Seng dropped 1.86% 23,297.15, and the Nikkei225 declined 1.46% 16,449.84.
In Europe as of midday, the FTSE 100 had fallen 1.03% to 6,848.45,and the Euronext 100 had fallen 1.28% to 868.73.
On the macro front
The personal income and outlays report, the Chicago PMI report,the consumer sentiment report and the Baker-Hughes Rig Count report are due outtoday.
The Daily Dose is updated as of 7:30 a.m. ET. Someexternal links may require a subscription.