We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CtW Seeks Major US Banks' Reviews After Wells Fargo Scam
Read MoreHide Full Article
In light of the sales scam surrounding Wells Fargo & Company (WFC - Free Report) , CtW Investment Group, the Union pension fund adviser, recently called on boards of JPMorgan Chase & Co. (JPM - Free Report) , Bank of America Corporation (BAC - Free Report) and Citigroup Inc. (C - Free Report) to review their employment practices. It said that it will not support the re-election of directors who failed to comply with the examination of incentive pay practices.
It sent letters to the lead directors of these banks and called them to review whether incentives paid to workers encouraged unethical behavior.
A renewed round of scrutiny on whether big lenders' sales practices have become too aggressive to meet goals has already been conducted. Notably, on Oct 3, Morgan Stanley was charged by Massachusetts' top securities for "dishonest and unethical conduct" for having pushed its brokers to sell loans to clients.
Further, CtW which manages more than $250 billion funds for the union pension, mentioned in its letter that the Wells Fargo case "evinces the significant risks that inappropriate and poorly designed human capital management practices may pose to a bank's operations, reputation, and regulatory standing."
In the past, some of the actions taken by CtW have helped bring certain changes including the departure of directors from JPMorgan after the so-called "London Whale" trading debacle. Moreover, it has called on Wells Fargo to take some actions. This includes adding two new directors with human capital expertise.
Meanwhile, other activists have called on Wells Fargo and have filed shareholder resolutions to study a breakup and to differentiate between the roles of CEO and chairman.
However, spokespeople for JPMorgan, Bank of America and Citigroup each have not yet made any comments regarding the matter.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CtW Seeks Major US Banks' Reviews After Wells Fargo Scam
In light of the sales scam surrounding Wells Fargo & Company (WFC - Free Report) , CtW Investment Group, the Union pension fund adviser, recently called on boards of JPMorgan Chase & Co. (JPM - Free Report) , Bank of America Corporation (BAC - Free Report) and Citigroup Inc. (C - Free Report) to review their employment practices. It said that it will not support the re-election of directors who failed to comply with the examination of incentive pay practices.
It sent letters to the lead directors of these banks and called them to review whether incentives paid to workers encouraged unethical behavior.
A renewed round of scrutiny on whether big lenders' sales practices have become too aggressive to meet goals has already been conducted. Notably, on Oct 3, Morgan Stanley was charged by Massachusetts' top securities for "dishonest and unethical conduct" for having pushed its brokers to sell loans to clients.
Further, CtW which manages more than $250 billion funds for the union pension, mentioned in its letter that the Wells Fargo case "evinces the significant risks that inappropriate and poorly designed human capital management practices may pose to a bank's operations, reputation, and regulatory standing."
In the past, some of the actions taken by CtW have helped bring certain changes including the departure of directors from JPMorgan after the so-called "London Whale" trading debacle. Moreover, it has called on Wells Fargo to take some actions. This includes adding two new directors with human capital expertise.
Meanwhile, other activists have called on Wells Fargo and have filed shareholder resolutions to study a breakup and to differentiate between the roles of CEO and chairman.
However, spokespeople for JPMorgan, Bank of America and Citigroup each have not yet made any comments regarding the matter.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.