A Skull-and Bones Flies over Cross-Selling: Political/Policy
Fall-out from Wells Fargo
In this report, we take stock of actions following Wells Fargo’s ground-breaking enforcement action on cross-selling practices, forecasting its near-term political and long-term policy impact. Based on our review of statements from Members of Congress, Presidential candidates, regulators, interest groups, and a sample of social-media commentary, we believe this case has significant potential to affect not only the pending incentive-compensation rule, but also spark a policy backlash akin to if not above and beyond the one that greeted disclosures of “robo-signing” on
foreclosures and related mortgage actions several years ago.