Wells targeted in Ponzi scheme suit; gender-lens investments get a boost; SEC on conflicts of interest
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REGULATION AND COMPLIANCE: Wells Fargo is being dragged into Ponzi scheme litigation over its alleged failure to detect an insurance scam believed to have cost more than 1,000 victims hundreds of millions in losses.
Wells became the target of a class-action lawsuit filed in federal court in Miami this week over accusations that it did not do enough to discover and prevent a Ponzi scheme perpetrated by a group of its former clients. The plaintiffs' lawyers say the scam cost victims upward of $300 million, and it all took place under Wells Fargo's watch. The suit states Wells acted not only as the bank for various entities involved in the Ponzi scheme but also as the trustee and securities intermediary for insurance products that were central to the fraud.
ESG: Following significant outflows and political scrutiny, which raised uncertainty about the future of ESG, gender-lens investing funds improved in the first quarter of 2024.
Gender-lens investing funds, ETFs made up of companies committed to advancing gender equality within their workforces, products and services, saw 9.5% growth in assets under management compared to the previous quarter. Publicly traded gender-lens investing funds had $4.6 billion in assets under management as of March 31.?
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TECHNOLOGY: The U.S. Securities and Exchange Commission is?examining how both social media influencers and AI technology can pose conflicts of interest, potentially steering young investors into risky financial decisions.
The concerns, raised during an SEC Investor Advisory Committee meeting on June 6, come at a time when many young investors have turned to social media for financial advice rather than a certified professional advisor.
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MBA - Business Analytics| CFA & CIPM, CFP and ChFC candidate | Aspiring EA |
8 个月Enough! Big banks need to be leaders in cyber security. Not victim blamers., leaders There are >4000 FDIC insured this country with the collective net earnings of $255 billion. Cybercrime cost citizens $12.5 billion in 2023 that’s less than 5% of the collective bank earnings. Is that capitalism? Not ethical capitalism when a bank when a brokerage tells you it’s your fault that you’re the victim. This framework needs to change Schwab ,WF, capital one , citi . You taught me what a fiduciaryis by teaching me what one isn’t.One of the essential rules of marketing all customers change in gen Y, z millennials won’t stand for your brand capitalism read an MBA textbook look up stakeholder approach You’re gonna help and maximize wealth for your shareholders by acting with ethics without being forced to.