BANK OF THE WEEK: Wells Fargo – The bank has announced that it has made significant progress toward the closure of the BizPac Capital crisis-stricken branch in Manhattan, in response to concerns that customers were not receiving timely information about their bank accounts.
This news comes as the company continues to work with regulators and has agreed to pay more than $5.2 million in fines in the wake of the crisis.
Wells Fargo CEO John Stumpf said in a statement that “we have been doing everything we can to ensure that we have a robust and responsive financial institution to serve the people of the United States.”
The company said it has a plan in place to keep the BitzOp branch open, with a $10 million contribution to its employee retirement plan and additional funding to cover the $6 million it will need to close.
A statement from the Bancorp said it is now working with the New York State Attorney General’s office and the New Jersey Division of Financial Services to identify the specific types of information that should be kept in the customer’s file.
“We are committed to providing timely, accurate, and complete information to our customers,” the statement said.
“As soon as we have information that is of significant value to our shareholders, we will provide it to them.
However, we are also committed to protecting the privacy of our customers.”
This is the second major bank to close BizOp.
JPMorgan Chase has also agreed to give up $2.6 million in compensation in a settlement with shareholders, the Wall Street Journal reported on Thursday.
In October, the bank paid a $1.6 billion settlement to settle claims it did not properly warn customers of its massive, risky mortgage products.
Bank of America is now closing its BizPacs in Chicago and Miami, where customers were being told their accounts had been frozen and that they could not withdraw money.
The bank is also working with regulators to make sure it’s in compliance with the Financial Crimes Enforcement Network (FinCEN) regulations, which mandate that it collect and share customer information with the government.
The Financial Services Roundtable is pushing for banks to share more information about the severity of the financial crisis, including the amount of money that’s been lost in the financial collapse.