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$0.190 billion is a trivial amount for Wells Fargo: it amounts to 3.4% of their Q3 2016 profits. They made $5.6 Billion dollars last quarter on $22.3 Billion in
by a_c_s 10y ago
$0.190 billion is a trivial amount for Wells Fargo: it amounts to 3.4% of their Q3 2016 profits. They made $5.6 Billion dollars last quarter on $22.3 Billion in revenue. [1]
If an individual commits one count of Social Security fraud they would pay a fine of $10,000 or about 20% of the median household income. [2] (This is an arbitrarily picked form of financial fraud)
If the bank had a proportional punishment they would pay 20% of their annual revenue for systemic fraud, which would be roughly $18 billion dollars.
[1] https://www.wellsfargo.com/about/investor-relations/investment-profile/ https://www.wellsfargo.com/about/investor-relations/investme...
[2] https://www.reference.com/government-politics/penalties-commit-fraud-b34237c885792cfe https://www.reference.com/government-politics/penalties-comm...
edit: used quarterly instead of annual figure for calculation
- pg314 10y agoYes, the fine is quite small for WFC and a fine of 18 billion dollars definitely would get their attention. It's still something WFC could survive (it's about a year's worth of profits), and totally different from putting WFC into bankruptcy. I'm not convinced you can compare personal law and corporate law. The fact that it's a fixed fine in personal law, regardless of income/wealth doesn't seem fair. Also, if you want to extend the analogy maybe it would be more appropriate to take 20% of profits? 20% of revenue it much easier for Apple to stomach than Walmart, because of higher margins. But then what do you do with companies that don't make a profit...