Massachusetts Democratic Senator Elizabeth Warren is calling on the Treasury Department to reject a merger involving First Horizon Bank over allegations of abusive practices.
First Horizon 鈥� headquartered in Memphis 鈥� has a large presence in the Triangle and Triad. In February, Toronto-based TD Bank announced it would buy First Horizon for $13.4 billion. TD Bank has 13 branches in North Carolina, mostly in the western part of the state.
reports TD Bank rewarded employees who signed customers up for new accounts and overdraft protection without permission. Employees told the outlet 鈥渢he company still expects its branch workers to nudge customers into accounts, cards and loans that they don鈥檛 need鈥� and awards 鈥減oints鈥� to staff based on the number of account sign-ups. The alleged practices are , which resulted in a $3 billion fine and the ouster of the bank鈥檚 CEO.
Warren, along with Representatives Katie Porter (D-CA), Jesus 鈥淐huy鈥� Garcia (D-IL), and Al Green (D-TX) to the Office of the Comptroller of the Currency, or OCC, which will decide the fate of the merger. The Capitol Forum report says OCC knew about TD Bank鈥檚 practices in 2017 but did not take action to stop them.
鈥淭he OCC鈥檚 decision... to allow TD Bank鈥檚 rampant fraud and abuse to go unpunished, even after the agency鈥檚 troubling findings in its own investigation of the bank, has the potential to undermine the OCC鈥檚 authority and put consumer finances at risk,鈥� the letter said, which is addressed to Acting Comptroller of the Currency Michael Hsu. 鈥淭he Biden Administration has previously stated its intentions to review regulations governing big bank mergers, and you have previously called for further public participation in the process.鈥�
Warren and her colleagues want the OCC to release the results of its investigation and prevent TD Bank from 鈥渃onsolidating any new mergers until this pattern of behavior is addressed.鈥�
TD Bank rejected the claims in the Capitol Forum piece. 鈥淲e vehemently object to any allegations of systemic sales practice issues, or any other claims alleged in the article,鈥� the bank said in a statement. First Horizon has declined media requests for comment.
