US Bancorp fined $613 million over inadequate money-laundering safeguards

“Culture of ethics and integrity.” Uh huh. The Star Tribune’s Jim Spencer reports: “Minneapolis-based US Bancorp has agreed to pay the federal government $613 million to settle criminal charges that it did not guard against money laundering in its business. … The U.S. Justice Department said US Bancorp’s inadequate safeguards against money laundering led the bank to miss suspicious transactions for a five-year period from 2009-2014. … ‘We regret and have accepted responsibility for the past deficiencies in our [anti-money laundering] program,’ US Bancorp CEO and president Andy Cecere said in a statement issued Thursday morning. ‘Our culture of ethics and integrity demands that we do better. One of U.S. Bank’s key priorities is to maintain an exceptional AML program and we are confident in the strength of the program we have in place today.’ … US Bancorp shares were off 4 cents, to $55.27, in midmorning trading Tuesday.”

Lynch maintaining innocence but dropping appeal. WCCO reports: “University of Minnesota basketball player Reggie Lynch is dropping his appeal in two sexual misconduct cases dating back to 2016. … Lynch was set to attend an appeal hearing at the university on Thursday on allegations of sexual assault by two women between April and May of 2016. Back in January, attorney Ryan Pacyga said Lynch categorically denied all allegations against him and said he never had sexual contact with either woman.”

Also in U news. The Minnesota Daily’s Isabella Murray reports: “A spike in robberies and relatively infrequent incidents of violent crime have occurred near the University of Minnesota recently. … These numbers are forcing the University of Minnesota Police Department and Minneapolis Police Department to closely monitor activity in the area. … Minneapolis’ Second Precinct, which includes the Southeast Como, Marcy-Holmes and Prospect Park neighborhoods, robberies more than doubled in the first week of February, compared to the same time period last year.

Too harsh? The Star Tribune’s Joe Christensen reports: “A hall of fame high school coach said he has been fired for ‘emotional mistreatment of athletes’ and for failing to treat ‘all students with dignity and respect.’ … Franz Boelter won seven state titles in 26 years as Faribault Bethlehem Academy’s volleyball coach and is the ninth-winningest boys’ basketball coach in state history. He retired as Faribault BA’s basketball coach in 2014, and the school fired him as volleyball coach Friday. … ‘I can’t get into it, but I felt in my mind, and the minds of those on our executive board, it was the right thing to do,’ BA president Chuck Briscoe told the Star Tribune on Wednesday. ‘We have to do what’s right for kids in 2018.’ … Boelter countered: “ ‘That’s what I’ve tried to do my whole career, do what’s right for kids. That’s what people did for me, and I’m trying to do the same thing back.’ ”

In other news…

Minnesota’s senior senator among them:Senators troll Facebook with fake ad campaign” [Axios]

Mayor Frey’s going to need a new chief of staff:Radinovich announces run for Nolan’s seat” [MPR]

Relatedly:Report: Minneapolis Mayor Jacob Frey got Kevin Hart drunk before the Super Bowl” [City Pages]

Good question:Can crisis centers fix state’s mental health problems?” [Rochester Post-Bulletin]

Moose news:Stable numbers, but Minnesota’s moose are not out of the woods” [MPR]

Imagine how hard it is if you aren’t from here:It Should Be Easier to Take the Bus” [streets.mn]

Qué rico:Minneapolis’ Pepitos, Parkway Theater buildings purchased; El Burrito Mercado taking over restaurant space” [City Pages]

Comments (2)

  1. Submitted by Wayne Kantola on 02/15/2018 - 08:17 pm.

    US Bank

    Pays the CFPB 613 million. No evidence that the “suspicious” transaction were actually a real problem. No acknowledgment that procedures in place today are sound. CFPB unfunded, unaccountable federal overreach that only continues to exist if it lines it’s own coffers with money seized from those it regulates. Thank Senators Dodd, Frank and Warren.

  2. Submitted by David Markle on 02/16/2018 - 12:13 pm.

    Familiar names

    Where is the civic leadership of yesteryear? What now prevails as a working philosophy of public responsibility? Not a mere coincidence, I fear, that top executives of US Bank and of recently fined Wells Fargo tried to hobble the operations of the Minnesota Orchestral Association when they ran that board.

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