Wells Fargo CEO to forfeit millions

The markets traded lower during the midday with the Dow losing 23 points to 18,204. Nasdaq fell 13 points to 5,292.


Wells Fargo will levy financial sanctions against top bank executives after revelations that employees created fake bank accounts to collect bank fees. Chief executive John Stumpf will not receive $41 million in unvested stock awards while the board of directors investigates the bank's sales practices. Former head of community banking Carrie Tolstedt will forfeit approximately $19 million in unvested equity awards and will not receive lucrative retirement benefits.


BlackBerry will no longer make phones. The company will outsource the manufacturing of devices to an Indonesian telecom. BlackBerry will focus on developing software and apps. BlackBerry once dominated the smartphone market with its QWERTY keyboard until iPhones and Android devices with touch screens became the gold standard.


UBS Group subsidiary UBS Financial Services will pay more than $15 million to settle Securities and Exchange Commission charges. The SEC found that UBS Financial did not adequately educate and train its representatives to sell reverse convertible notes. As a result, sales representatives inappropriately sold RCNs to inexperienced customers.


In the broad market, advancing issues barely edged out decliners by a slim margin on the NYSE while decliners outpaced advancers by a margin of more than 7 to 5 on Nasdaq. The broader S&P 500 fell 4 points to 2,155. Bitcoin slipped $1 to $603.

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