Restrictions at Wells Fargo are loosened after years of oversight following scandal
President Joe Biden's administration is easing its restrictions on banking giant Wells Fargo, saying the bank has sufficiently fixed its toxic culture after years of scandals.
The news sent Wells Fargo's stock up sharply Thursday as investors speculated that the bank, which has been kept under a tight leash by regulators for years, may be able to rebuild its reputation and start growing again.
The Office of the Comptroller of the Currency, the regulator of big national banks like Wells, terminated its consent order Thursday that had been in place since September 2016. The order required Wells to overhaul how it sold financial products to customers and provide additional consumer protections, as well as employee protections for whistleblowers.
After a series of newspaper and regulatory investigations in 2016, Wells was found to have a poisonous sales culture that would pressure employees into selling multiple products to customers though such products were not needed. Millions of unauthorized accounts were opened, severely tarnishing the reputation of Wells Fargo, once among the most sterling in banking.
Disabled Americans propel third of post-COVID workforce gains
Americans with disabilities have been a driving force in building back the nation's post-pandemic labor market and JPMorgan Chase & Co. says there are more gains to be had.
Despite only making up about 12% of the U.S. adult population, those with disabilities account for nearly a third of the growth in the labor force over the past three years, JPMorgan's Chief U.S. Economist Michael Feroli said Wednesday. Participation rates for both disabled men and women both hit records last year and still are hovering near those levels, according to the Bureau of Labor Statistics.
“Structural changes in work arrangements, income support programs and therapeutic interventions may all contribute to a trend improvement in participation rates for the disabled,” Feroli said. “But the sharp improvement over the last few years likely owes to the high-pressure labor market.”
People with disabilities have historically been employed at much lower rates than those without, but the remote-work trend triggered by the pandemic changed that. Advocates hope the progress can continue — even as employers bring staff back into the office — given there are still millions of job openings and a constant interest to diversify the workforce.
Remote work isn't the only force at play, Feroli said. The census survey that identifies people with disabilities is written in such a way that may cause individuals with long COVID-19 to identify as disabled, and if those people have a greater attachment to the workforce, that would support the improved trend, he said.
Viking Cruises mulls an IPO that could raise $500 million or more
Viking Cruises is considering an initial public offering that could raise $500 million or more, according to people with knowledge of the matter.
The travel company is working with Bank of America Corp., JPMorgan Chase Co., UBS Group AG and Wells Fargo Co. on the potential listing, the people said, asking not to be identified discussing confidential information. An IPO may come as soon as the second quarter, they said.
Deliberations are ongoing and details of the possible first-time share sale, including the size and timing could change, the people said.
Representatives for Bank of America, JPMorgan, UBS and Wells Fargo declined to comment, while Viking didn't immediately respond to requests for comment.
Consumer inflation slows, but signs show rates staying put
Consumer inflation in the United States cooled last month, yet remained elevated in the latest sign that the pandemic-fueled price surge is only gradually and fitfully coming under control.
Tuesday's report from the Labor Department showed that the consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared with a year ago, prices are up 3.1%.
That is less than the 3.4% figure in December and far below the 9.1% inflation peak in mid-2022. But the latest reading is still well above the Federal Reserve's 2% target level at a time when public frustration with inflation has become a pivotal issue in President Joe Biden's bid for reelection.