Wells Fargo to Claw Back $75 Million From Former Executives
By the C|C Whistleblower Lawyer Team
Wells Fargo’s board announced that it would recover an addition $75 million in compensation from former CEO John Stumpf and former head of community banking Carrie Tolstedt. Wells Fargo released a 113 page report in conjunction with the announcement that called the warning signs of the problem involving fake accounts “glaring” and demonstrated a decentralized culture that pressured employees to create the fake accounts to meet aggressive sales quotas. The claw back is in response to the blame being placed primarily on Stumpf and Tolstedt.
The report prepared by law firm Shearling & Sterling found that the suspicious signs should have added up for executives overseeing the regional banking employees. New accounts were not being funded at high rates, regional managers were asking their superiors to lower or drop sales goals, and more. Many of the sales goals were considered unrealistic by regional bankers and bad for customers. Because the operations of the bank were so decentralized, the problems were able to continue unnoticed. For her part Tolstedt saw community banking as a sales organization rather than a “service-oriented financial institution.”
Tolstedt also kept hidden from the board the true amount of employees fired for unethical actions. The board believed it was approximately 230 employees when in reality 5,300 employees had been fired over a five year period. The general view of the report was that Tolstedt was focused solely on meeting sales targets without recognizing that employees may be cheating or acting improperly to meet them. The report alleges that she persisted with this view despite multiple senior regional bank managers telling her that the sales goals were unreasonable.
The Wells Fargo scandal has persisted despite Stumpf and Tolstedt stepping down as multiple lawsuits and investigation churn through their respective systems. Wells Fargo has done what it can to mitigate the damage. However, until all of the lawsuits and investigation conclude, including allegations presented by whistleblowers, Wells Fargo will have trouble containing constant stream of new stories.
Tagged in: Financial and Investment Fraud, Financial Institution Fraud,
1 Reply to Wells Fargo to Claw Back $75 Million From Former Executives
I am positive that millions of “DEBIT CARDS” were opened in “DEAD VETERANS” names as well as their “SURVIVING SPOUSES” names and then used by employees at Wells Fargo and their friends at the VA. The many victims still have not gotten back their money yet. I am going out on a limb to say that perhaps this 75 Million Claw Back from Former Employees at Wells Fargo is where our money is going to be coming from in the next few weeks. This bank, Wells Fargo, is an arm to the Panama Papers which lead to all of the uncovering of the “IDENTITY THEFT” and “RE-ROUTING” of funds from unsuspecting Veterans and their Surviving Spouses who still has yet to be notified. I do believe that Wells Fargo needs to be shut down or pay us all back ASAP!!!!
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