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“Elizabeth Warren was not nearly as polite as I was…”
In February I posted an open letter to Timothy Sloan, the avowedly reformist CEO at Wells Fargo, regarding his company’s regrettable sales practices and its retrograde investments in fossil fuels, and our plan to divest ourselves of ties with his bank.
In April, Mr. Sloan himself published an open letter, listing the many ways in which Wells Fargo had been “ acting to regain its customers’ trust” after last year’s nasty scandals. No, of course he didn’t mention my letter, or many others he must have received. ( Nor did he mention his good works with the Boy Scouts of America, who have had their own image difficulties in recent years.)
My letter had circulated in the social media, while Mr. Sloan’s was a full-page ad in national newspapers. At the time, Mr. Sloan and the head of the Wells Fargo board purchased a total of $5 million of their company’s stock in a handsome display of good faith.
Meanwhile, lacking this good faith, my husband and I began laboriously to transfer our accounts out of Wells Fargo to more socially responsible banks. At least a few of my readers and friends said they were doing the same.
When the Wells Fargo fake- accounts scandal first erupted in 2016, it had mattered less to us than the bank’s short-sighted investments in oil pipelines and other destructive fossil fuel projects.
Later, in October 2016, the New York Times reported at some length how employees at various Wells Fargo branches had preyed upon the most vulnerable individuals—immigrants with little English, older adults with failing memories, students opening their first accounts.
According to Kevin Pham, a former Wells Fargo employee in San Jose, California, “It was like lions hunting zebras.” Pham mounted a Facebook campaign to hold Wells Fargo accountable. He scored 50,000 “shares”.
While there had reportedly been no systematic targeting of vulnerable groups, demographic patterns sometimes emerged, such as Native Americans near Phoenix, looking for a safe place to stow their quarterly distribution checks and being set up with several unnecessary accounts per capita. There were other cases, and dispiriting details.
The bank has been trying to channel new lawsuits away from the two million fake-accounts scandal, by moving them into private arbitration. We just received such a mediation offer and ignored it, having already closed the gratuitous account and shredded the card. Other customers, however, are indeed pursuing litigation.
Meanwhile, the revelations continue. Recently several plaintiffs have claimed that Wells Fargo changed the mortgage terms of bankrupt borrowers without their knowledge, much less their consent. Generally the changes meant smaller payments over longer time periods—but with immense finance charges accruing to the bank. As the New York Times reported in June, in its best imitation-tabloid style, “Wells Fargo, the $270 billion California- based lender, is driving its stagecoach further into the mud.”
Also in June, Senator Elizabeth Warren sent a letter, this one to Federal Reserve Board chair Janet Yellen, demanding the removal of twelve Wells Fargo board members who had been present and passive during the years when bank employees were setting up the infamous two million fake accounts. While 5300 lower-level employees were fired as a result of the scandal, $185 million fines had been paid, and the CEO sacked, the original Wells Fargo board members had remained in place, drawing their annual average base salary of $187,000— with bonus and additional compensation, $319,000. (An average Wells Fargo “personal banker” makes $37,000, a teller, $25,000. Why would one use “K” to signify all those thousands?)
Wells Fargo had been cited earlier for poor loan-servicing and foreclosure practices. In 2012 it was among the five lenders agreeing to a $25 billion settlement with the federal government and 49 states, to rectify these “poor” practices. In 2015 it settled $1.2 billion against claims of reckless lending under a Federal Housing Administration program.
Elizabeth Warren’s letter was not nearly as polite as mine, which may be why a super-pac has promised $10 million to “Deal Her Out” of re-election in 2018.
Meanwhile, it’s taken months to find what we hope are ethically (and fiscally) sound financial institutions, and to complete the tedious maneuvers of rerouting into new accounts our network of monthly payments to utilities, college funds, subscriptions, charities. Rerouting our monthly deposits was the easy part.
Why are we doing this, when we could be using more time to address climate change or health care, or at least to haranguing our legislators? Here’s the thing: our votes and our protests often seem more self-righteous than effective because they originate in the bright blue state of California. Our state is viewed quite negatively, it is clear, by the present Potus and his cronies—and with good reason, we hope.
Choosing not only where we spend our money, but where we keep it and who uses it, seems valuable leverage just now, in this thoroughly unhinged capitalist democracy.
To be continued, for better and for worse.
Map from ICIJ (International Consortium of Investigative Journalists)
“The Panama Papers” could be the title of a mid-century noir starring Humphrey Bogart or maybe Alec Guinness. In fact it is an ongoing opportunity for our failing news media to research juicy data on global tax evasion by the rich and unscrupulous here and abroad. The 11.5 billion documents are from the files of Panamanian law firm Mossack Fonseca and incriminate evenhandedly heads of state, corporations, and figures in sports and the art world. The prime minister of Iceland resigned immediately following exposure of his offshore bank holdings, and David Cameron has had to defend his father’s dealings. Putin seems to be condemned by association, and Bashar al Assad’s cousins are definitely enmeshed. (Much more will be revealed by the ICIJ on May 9.)
Jurgen Mossack and Ramon Fonseca
Our press, after reporting, often gleefully, on the rowdiest and least morally serious primary campaign in recent memory, now has an opportunity to reveal to the U.S. electorate the shady investments and slippery connections of donors and politicoes at home and abroad. There are no Clintons on the Panama Papers list so far, but some of their closest confreres have been named. Bernie Sanders will not have needed a tax shelter, and no doubt Donald Trump has other ways to protect his billions. Still, we can expect an exciting round of follow-the-money discoveries in the coming campaigns, in addition to the usual salacious reminders of sequential marital difficulties on the part of the major candidates.
Moral seriousness seems to be in short supply these days, not only in journalism and politics. This puts into high relief Adam Hochschild’s fine book on the Spanish Civil War. While the topic may seem remote just now, as the world warms, the Middle East implodes and Europe falters under the waves of its refugees, Hochschild focuses on a related issue: when is intervention in a foreign war justifiable?
The poorly armed Spanish Republicans were unable to prevent Generalissimo Franco, backed by Hitler and Mussolini, from taking over. If the U.S. had officially joined Russia in reinforcing the ragtag Spanish Republican army, might that have forestalled the slaughter of the Second World War? If the U.S. had more heavily armed an elusive “moderate” Syrian opposition against the Assad regime, could the bombing of that hospital in Aleppo have been averted? It seems safe to say that in each case, the only certain outcome would have been greater bloodshed.
During demonstrations against the U.S. war in Vietnam, I remember a spirited peace march through through San Francisco on a sunny day, with my parents, husband, and two young children. It was one of the few times that I saw my father, an embittered veteran of World War II, suspend his cynicism. And we did eventually get out of Vietnam, whether or not our antiwar protests were crucial.
Demonstrations against the U.S. war in Iraq seemed less spirited, but then we were thirty years older, wiser, and sadder. Today, our weaponry and soldiers are still in Iraq, as well as Syria and Afghanistan—although many of the U.S. tanks and missiles have ended in the hands of the Islamic State and al Quaeda. But there are always more where those came from, given that the Uncle Sam is the largest arms manufacturer in the world, by far.
The important question of justifiable intervention in a foreign war is only too relevant, fiscally and morally, to the current presidential campaigns., “How Hillary Clinton Became a Hawk” by White House correspondent Mark Landler (NYTimes Magazine, April 24) examines at great length the evolution of her belief in military solutions, including her long-term friendships with various army generals. of which David Petraeus is the most photogenic.
Landler scarcely mentions Hillary’s controversial role in Libya, perhaps because the Times had recently covered it in an earlier pair of in-depth articles. The Times, which has endorsed Clinton, seems to have displayed unusual initiative in publishing these pieces, which conclude that American voters may be presented with “an unfamiliar choice, a Democratic hawk versus a Republican reluctant warrior.” Donald Trump claims that he was an early opponent of the Iraq war, which he said would destabilize the region. Fact-checkers report that he said no such thing at the time that he said it.
However these distorting, disheartening campaigns develop in the coming six months, unpacking the Panama Papers should result in more transparency about global networks of money and power.Whether the electorate’s responses will be too jaded to make the logical connections, time will tell. But after the election we can always look forward to the movie. For his part, Ramon Fonseca jauntily says that he plans to use the material in a novel.