This would be devastating to shareholders.
The heavy hand of govt up these executives azzes would drop earnings to $0.00 overnight.
Hsu and the OCC use a four-level escalation framework that decides whether a bank should be broken up.
- Issue a non-public supervisory finding.
- Issuing public "enforcement actions, such as a consent order, which, depending on the infraction, could be paired with a civil money penalty," Hsu said.
- Put a growth limit on the bank.
- Breaking up the bank.
Hsu was clear that steps 3 and 4 are not taken lightly, and breaking up a bank, he shared, would only happen if its leadership repeatedly failed to address its problems.
"The design logic of an escalation framework is to use the credible threat of restrictions and divestitures guided by and consistent with due process to force banks to prove that they are manageable," he said. "And then to let the effectiveness or ineffectiveness of their actions speak for themselves."
By that description i reckon wells fargo fits the bill for breakup - and may have been catalyst why the bank was eager to sell off the student loan and mortgage divisions - Charlie is desperate to reduce the size and complexity of bank before the regulators FORCE HIM TO.
But it may be too late.
Buckle up boys and girls - this might get a lil'bumpy...
https://www.thestreet.com/banking/u-s-government-suggests-wells-fargo-big-banks-could-be-broken-up