Finance Archive

Online VC FundersClub launches Network Search to better connect its 17,000 members

Network effects in venture capital are no joke. Sure, people want to close rounds with brand name funds like Sequoia and Andreessen Horowitz because they validate startups. But perhaps more importantly, companies become more likely to succeed after closing high profile rounds because of their newfound access to the friends and connections of prominent investors. Alex Mittal, CEO of FundersClub, has spent a lot of …

The pathogens of Wells Fargo's corruption fester in every large corporation

Despite the denials of its new CEO, Wells Fargo had a serious, widespread cultural problem that led it to commit at least 2,000,000 financial crimes. But the crimes and the culture are widespread across America’s banks, and they spread further than that, because the system is rigged to reward financial crime. To understand the systemic enticements to fraud in corporate America, you …

Billionaire tech investors support divisive plan to ban San Francisco’s homeless camps

The debate over what to do about San Francisco’s homeless population has been building for awhile among the many startups and residents here. But now tech billionaires Ron Conway, Michael Moritz and well-to-do hedge fund manager William Oberndorf have each thrown about $50,000 behind a measure to rid San Francisco of its homeless tent cities. Other notable investors, including Yahoo CEO Marissa Mayer’s husband and venture capitalist …

Wells Fargo CEO John Stumpf resigns

First he was flayed by Senator Elizabeth Warren, then Congress had a go, then everyone got to gnaw on the fact that he’d done some seriously criminal stuff, then it emerged that he’d been a party to the bank’s frauds since at least 2008, then we learned that his $200B bonus would be subsidized by taxpayers, then we learned that he walked through one …

Wells Fargo whistleblower: once I complained, they started denying me bathroom breaks

Yesterday, I predicted that a lot of Wells Fargo whistleblowers were going to come forward, given how terribly treated its employees. The kind of pettiness in Nathan Todd Davis’s testimony guarantees there’s more to come. Nathan Todd Davis said at a California State Assembly hearing on the Wells Fargo (WFC) fake account scandal that he filed 50 ethics complaints …

Whistleblower docs: Wells Fargo was opening fake accounts in 2005

Dennis Hambek was a Wells Fargo branch manager. In 2005, he found Wells Fargo employees creating fake accounts in their customers’ names (in order to meeting the company’s punishing sales quotas and avoid being blackballed across the industry). He sent a certified letter about the practice in 2006 to Carrie Tolstedt — the bank exec who oversaw the fraud and retired weeks ahead of …

Wells Fargo whistleblower describes bank's culture of blackballing threats and coerced corruption

On the latest Planet Money podcast (MP3), a former San Francisco Wells Fargo banker describes the bullying and coercion she faced from senior management while working at the bank’s head office, and how the bank forced her out when she blew the whistle on fraud and then blacklisted her with other banks, forcing her out of the sector altogether. “Ashley” was 30 when …

Report: Verizon wants $1 billion discount after Yahoo privacy concerns

It’s bad news for Yahoo. The company is in the midst of finalizing its sale to Verizon, but recent revelations about hacking and spying may be costing them a pretty penny. A story from the New York Post alleges that Verizon is now asking Yahoo for a hefty $1 billion discount to finalize what was supposed to be a $4.8 billion deal.  (Full disclosure: TechCrunch is …

Capital One acquires online price tracker Paribus

Capital One is making another acquisition in the fintech space, this time snatching up the price tracking service Paribus, which helps online shoppers get automatic refunds when prices dropped on items they purchased. Deal terms were not disclosed, but the acquisition involves bring both the team and the technology itself to Capital One. Launched at TechCrunch Disrupt NY 2015, Paribus’ idea was to automate the process …

Prepaid card users will finally be protected from fraud and crazy fees

If you’ve been out of touch with the FinTech market recently you may have missed how popular prepaid cards have become. This is especially true when it comes to “open-loop” cards, which are prepaid cards powered by a processor like Visa or MasterCard that can be used anywhere a credit or debit card is accepted. These accounts now look and feel increasingly similar to an actual …