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Stories of Interest
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
- BigLaw Hogan Lovells Announces Hundreds of Buyouts, Layoffs - Almost 500 Affected
- Faith-Based Advisor Censured for Selling Class A Shares to Clergy
- After FINRA Bar, CFP Board Suspends Texas Advisor
- iCapital Network to Acquire U.S. Private Equity Access Fund Platform from Deutsche Bank
- Deutsche Bank ‘Beyond Repair’ as Trading Drops - Autonomous Research
- Guggenheim Partners CEO Might Step Down
- Wachovia Customer Sues Wells Fargo Over FundSource Losses - Bill Singer
- Credit Downgrade for Wells Fargo Due to Fake Account Scandal
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NEWSLETTERS & ALERTS
A Wells Fargo-Like Scandal Brewing at TD Bank
In what could be the ‘second coming’ of the Wells Fargo sales scandal – this time from across the Canadian border – an investigative reporter for CBC News described an environment at Toronto-Dominion Bank where TD employees are under “incredible pressure” to meet “unrealistic” sales goals that has led some to the opening of unauthorized accounts bearing higher fees.
CBC News issued an initial report on Monday that described high-pressure corporate environment at TD Bank, and followed that up with a second scathing report on Friday after hundreds of bank employees came forward with stories of pressure to ‘upsell’ customers.
TD Bank issued a statement denying the accuracy of the report and saying it does not reflect the experience of most of its employees. Nevertheless, the stock market responded with a sell-off of TD Bank, with shares closing down over 5% - its biggest one-day drop since 2009.
CBC REPORTS THAT LAWS WERE BROKEN. CBC investigative reporter Erica Johnson writes about the “firestorm of reaction” from TD employees across the country, who describe a “pressure cooker environment they say is ‘poisoned’, ‘stress inducing’, ‘insane’ and has ‘zero focus on ethics’."
Among the improprieties noted in the so-called testimonies:
- Failure to tell customers about unauthorized changes to their accounts.
- Unauthorized increases to credit lines.
- Unauthorized increases to overdraft protection amounts.
- Unauthorized increases to credit card limits.
- Unauthorized switching of customers to accounts with required minimum balances.
- Investing clients’ savings into unsuitable funds.