Earlier this month, Wells Fargo, the third-largest bank in the United States, acknowledged that it improperly foreclosed on 545 distressed homeowners after they asked for help with their mortgages. The bank has exhibited a seemingly established pattern of negative behavior, from creating 3.5 million fake accounts to charging 570,000 customers for auto insurance they did not need to illegally repossessing vehicles from hundreds of service members. At the start of the year, Wells ranked 26 on the Fortune 500’s 2018 rankings of the largest U.S. corporations by total revenue. It is also the second-largest retail mortgage lender and the largest debit card issuer by purchase and transaction volume. These facts establish the bank as a systemically important financial institution. My firm’s economic models suggest that the next recession may very well start with a major hack at a SIFI like Wells Fargo. This underscores the importance of stemming the ongoing problems at Wells as quickly and
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