Wells Fargo 9-16-2016

16, September 2016            Wells Fargo

Responding to intense high pressure tactics to meet unreasonable targets, bank officials illegally transferred funds from existing customers’ accounts to open new fraudulent accounts.  When the seedy activities were finally exposed, Wells Fargo agreed to pay restitution to customers who were charged for these sham accounts. The scale of the operation is mind-boggling spanning five years impacting millions of customers. 5,300 of the ‘bad apples’ managers and employees were fired while the senior vice president in charge, Carrie Tolstedt, chose early retirement raking in millions in stock and options.  Displaying gross insensitivity to the massive charade, chief executive, John Stumf, called Tolstedt, “a role model for responsible leadership” and “a standard-bearer of our culture.” She earned $27 million over the last three years for her stellar leadership. This gross violation of the public trust will continue until senior bank executives trade their expensive attire for orange jump suits.

The Obama administration must share the blame for establishing a dangerous precedent allowing senior Wall Street Banks bankers to escape  punishment during the 2008 financial crisis.