President Trump has waded in on Wells Fargo’s multiple scandals. You remember the forced insurance, the mortgage fee overcharges and the fake bank accounts. If you don’t Trump does. In a tweet he said, “Fines and penalties against Wells Fargo bank for their bad acts against their customers and others will not be dropped.”
Currently the acting director of the Consumer Financial Protection Bureau (CFPB) is White House Budget Director Mick Mulvaney. He’s frozen all regulatory actions — including Wells Fargo’s — and agency hiring while he does a review of what the agency does.
On the agenda once all that is done will be a settlement proposal of tens of millions of dollars for the wrongly charged mortgage fees. The president thinks the fines should be “substantially increased.”
However, so far Wells Fargo has paid $185 million in fines and refunds to its customers.
In the meantime, though the exact terms of the deal have not been revealed, USI Insurance has closed the purchase of Wells Fargo Insurance Services. The insurance company is an insurance brokerage and handles insurance, consulting, employee benefits and property and casualty national practices, safehold special risk, student insurance, individual health and private risk management insurance lines and small business insurance.
USI CEO Michael Sicard said, “With the combined strength of our two market leading companies, USI is one of the largest and strongest insurance brokerage and consulting firms in the world. We serve large risk management clients, middle market companies, smaller firms, and individuals with a full range of property & casualty, employee benefits, personal risk, program and retirement solutions. We are thrilled to join together with the tremendous professionals of Wells Fargo Insurance Services.”
Wells Fargo’s Perry Pelos agrees.
“This strategic transaction is the result of hard work from the outstanding teams of both companies. I also want to recognize the extremely talented team of professionals who are leaving Wells Fargo to join USI. I’m confident they will continue to be successful as they serve clients’ insurance needs as part of this strong industry leader,” he said.
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