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Former Wells Fargo CEO fined $17.5 million for sales scandal
Key Excerpts from Article on Website of San Francisco Chronicle (San Francisco's leading newspaper)
Posted: February 4th, 2020
https://www.sfchronicle.com/business/article/Former-Wells-Fa...
Federal regulators have slapped former Wells Fargo CEO John Stumpf with a $17.5 million fine for his role in the banks sales practices scandal. Stumpf also accepted a lifetime ban from the banking industry. Along with its fine against Stumpf, the Office of the Comptroller of the Currency announced Thursday it is suing five other former Wells Fargo executives for a combined total of $37.5 million. This is the first time regulators have punitively punished individual executives for Wells Fargos wrongdoing. The San Francisco-based bank has paid hundreds of millions of dollars in fines and penalties for encouraging employees to open up millions of fake accounts in order to meet unrealistic sales goals. As part of their settlements and lawsuits against these Wells executives, regulators seek to ban all of them from ever working in the banking industry again. The root cause of the sales practices misconduct problem was the Community Banks business model, which imposed intentionally unreasonable sales goals and unreasonable pressure on its employees to meet those goals and fostered an atmosphere that perpetuated improper and illegal conduct, the OCC said in its complaint. Community Bank management intimidated and badgered employees to meet unattainable sales goals year after year, including by monitoring employees daily or hourly and reporting their sales performance to their managers, subjecting employees to hazing-like abuse, and ... terminating employees for failure to meet the goals.
Note: Though it's great that someone has finally been fined at Wells Fargo, a small time robber gets locked up in jail for years. Why aren't these people who were the cause of huge white collar crime being jailed? For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption from reliable major media sources.
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