Wells Fargo: Again

      Well, sports fans, Wells Fargo has been called on the carpet again.   Among other things required by the Dodd-Frank Financial stability rule book, banks that are "Too Big to Fail"(are systemic threats due to size) must provide proof of their ability to remain solvent in the event of downturn(severe) in the economy.   This means that banks have to have more capital on hand(liquid assets) to maintain stability in crisis.
       Banks don't like this requirement one bit.   They want as much capital working as possible, which means more profits (maybe).   So, the COC(Comptroller of the Currency) exams these large banks to see if they are meeting levels necessary.  Upon a recent review, Wells Fargo failed the "test".  Not so good.  This clearly demonstrates institutional pushback or a 'thumbing of the nose' to the COC.    Not too long ago, Wells was given a $185 million slap on the wrist for some other shenanigans(opening accounts for customers they didn't order or want).  This week, it was also revealed that Prudential Insurance was selling policies through Wells without authorization or request.   Customers complained; whistle blowers were fired, and headlines were printed.  Something has gone wrong in corporate America and it starts with banks/bankers.  Their thinking about money has been corrupted.  They've had it too good too long.   Witness the reaction to the Fed's increase of interest rates yesterday:  banks raised their prime rate the day before:Wednesday, Dec. 14.  And interest paid on deposits: stays the same-almost zero.  The banks think this is good business.  Makes sense if your idea of profit is profit at any cost, damn the neighborhood and retail customers.   Modern corporate banking has abandoned customers who have collectively become numbers in a data base, not someone whose hand you must shake or who you might have to provide a loan or who might have a financial setback requiring a loan rate reset.
      Banking has become an arm of government with the usual results: bureaucratic inertia protected by volumes of laws and regulations even the bureaucrats don't understand.
     The President-elect says he knows more about finance than anybody.  Might this knowledge be put to good use for the customers who have been shouldering the load of the financial climb back to solvency?   Time will tell; but until we see banks pay real interest on deposits, nothing much will flow to Mom and Pop.