Despite the mercurial moral nature of most politicians, they can always be counted on for at least one thing—making a bad situation worse. Not that we’re about to stand in defense of Wells Fargo and its reprehensible shareholder screw job, but what possible good can come from Elizabeth Warren’s latest letter-writing campaign.
The hyper-liberal senator from the East Coast Commonwealth recommended investigations recently into alleged comments made by some of the country’s largest insurance and financial services companies. The latter had the temerity to inform clients of their views on the likely impact of the fiduciary rule which, given Warren’s reaction, might easily be confused with a RICO violation.
When former SEC chair Mary Jo White failed to respond to one of her missives in a suitable manner, the senator went so far as to write then-President Obama to urge him to fire the insubordinate White. Let’s hope the AHCA covers Carpal Tunnel.
On Monday, CNBC reported that Warren is now “calling for the ouster of 12 board members at Wells Fargo due to the fake accounts scandal that has rocked the bank.”
“In a letter sent Monday to Federal Reserve Chair Janet Yellen, the Massachusetts Democrat said the scandal has ‘revealed severe problems with the bank’s risk management practices,’” according to the network. “Warren said the central bank has the authority under federal statute to remove the members who were on the board as the matter transpired.”
The weird thing is that even Warren acknowledges the company has already received a multitude of clawbacks, firings, and fines, with the senator’s own Consumer Financial Protection Bureau levying a record $100 million against Wells Fargo just last fall.
Yet in a scene reminiscent of the Airplane classic, she’s now encouraging the Federal Reserve to grab a crowbar and get in line.
Thankfully, the firing of an entire board at a large national bank is unprecedented and unlikely to happen, and even if it was, how could such drastic action possibly be good for shareholders and bank customers?
It couldn’t, which is the point. She’s once again harming the very people she claims to help. Call it another notch in Warren’s political enrichment belt, all at the expense of investors and yes, 401k plan participants; those unlucky enough to hold Wells Fargo somewhere in their retirement portfolios.