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Wells Fargo chief John Stumpf retires in wake of fake account scandal Options
progpen
Posted: Thursday, October 13, 2016 10:01:17 AM

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https://www.theguardian.com/business/2016/oct/12/wells-fargo-ceo-john-stumpf-retires-fake-accounts?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+USA+-+morning+briefing+2016&utm_term=194676&subid=9791312&CMP=ema_a-morning-briefing_b-morning-briefing_c-US_d-1

Stumpf will receive no severance payment for retirement which comes a month after $185m settlement with US regulators over illegal sales practices

Stumpf was to forgo his salary while the investigation was ongoing; in 2015 he made about $19.3m. Stumpf also forfeited about $41m in unvested equity awards in the aftermath of the scandal.

Wells Fargo had been creating fake bank accounts and opening credit cards for customers without their permission in order to meet sales quotas.
The illegal practices were exposed in a lawsuit filed by David Douglas, a long-term Wells Fargo customer. In 2013, the Los Angeles Times reported that at least 30 employees had been fired for opening duplicate accounts without the knowledge of customers. The Guardian subsequently found that sales quotas that employees said led to such accounts being opened were still in place.

In 2013, a personal banker working at Wells Fargo was expected to sell 20 products a day. According to Khalid Taha, a former personal banker at Wells Fargo, in 2014 that number dropped to 15 a day. Such products included overdraft insurance, travel insurance, new accounts and credit cards.

Speaking to the Guardian in 2015, Taha said the 15-product-a-day quota was “unreasonable” and said every interaction with a customer, many of whom were current users of the bank who just want to get a statement, check their balance or make a payment, took an hour.


Many employees were fired, but the executive level had steadfastly refused to take responsibility for their actions. This is a small step in the right direction.

Be kind but be fierce. You are needed now more than ever before. Take up the mantel of change. For this is your time.
towan52
Posted: Thursday, October 13, 2016 10:25:23 AM

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I would be very surprised if these practices were confined to Wells Fargo!

"Today I was a hero. I rescued some beer that was trapped in a bottle"
TL Hobs
Posted: Thursday, October 13, 2016 12:48:20 PM

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Location: Kenai, Alaska, United States

So, why isn't he in jail? I guess he can afford to buy all the justice he needs.



"When you don't know where you are going, you have to stick together just in case someone gets there." - Ken Kesey
Listening . . .
Posted: Thursday, October 13, 2016 1:03:24 PM

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Joined: 6/30/2011
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I watched his testimony - what a weak leader! Completely detached from the ongoings of his company; every duty was assigned to someone else. Absolutely disgusting. Shame on you And he walks with $134M?? Seriously? d'oh!
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