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Wells Fargo CEO John Stumpf. (Photo: FORTUNE Global Forum/flickr/cc)
Wells Fargo Announces $60 Million Clawbacks, But No 'Real Accountability'
"Stumpf should resign, return every nickel he made while this scam was ongoing, and face SEC and DOJ investigations."
Sep 28, 2016
Wells Fargo, according to Sen. Elizabeth Warren (D-Mass.), took "a small step in the right direction" when it announced Tuesday that it was clawing back $60 million in pay from CEO John Stumpf and Carrie Tolstedt, the former executive who ran the fraudulent program.
The Associated Press reports:
The independent directors at the nation's second-largest bank said Tuesday that Stumpf will forfeit $41 million in stock awards, while former retail banking executive Carrie Tolstedt will forfeit $19 million of her stock awards, effective immediately. Both are also giving up any bonuses for 2016, and Tolstedt will not receive any severance or any other compensation in connection with her retirement, the bank's directors said.
But, according to Warren, that's "nowhere near real accountability," because Stumpf "keeps his job and most of the money he made while massive fraud went on under his nose."
Instead, she tweeted, "Stumpf should resign, return every nickel he made while this scam was ongoing, and face U.S. Securities and Exchange Commission and Department of Justice investigations."
"Employees who tried to sound the alarm about the creation of fake accounts were fired. Their lives turned upside down," she added.
Some of those workers, as CNN reported this week, are fighting back, and have filed a class action lawsuit in federal court charging that they were targeted for termination for not taking part in the sales scam.
In addition, the Labor Department announced this week it would conduct a probe into the bank's practices.
"Given the serious nature of the allegations, the recent actions of our federal partners, and recent media reports, I have directed enforcement agencies within the Department to conduct a top-to-bottom review," Secretary Tom Perez said.
Following his appearance before the Senate Banking Committee last week--during which Warren lambasted his "gutless leadership"--Stumpf "has another date on the hot seat," this time on Thursday before the House Financial Services Committee.
According to Bloomberg, he "plans to offer House lawmakers the same apology he gave Senators last week."
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Wells Fargo, according to Sen. Elizabeth Warren (D-Mass.), took "a small step in the right direction" when it announced Tuesday that it was clawing back $60 million in pay from CEO John Stumpf and Carrie Tolstedt, the former executive who ran the fraudulent program.
The Associated Press reports:
The independent directors at the nation's second-largest bank said Tuesday that Stumpf will forfeit $41 million in stock awards, while former retail banking executive Carrie Tolstedt will forfeit $19 million of her stock awards, effective immediately. Both are also giving up any bonuses for 2016, and Tolstedt will not receive any severance or any other compensation in connection with her retirement, the bank's directors said.
But, according to Warren, that's "nowhere near real accountability," because Stumpf "keeps his job and most of the money he made while massive fraud went on under his nose."
Instead, she tweeted, "Stumpf should resign, return every nickel he made while this scam was ongoing, and face U.S. Securities and Exchange Commission and Department of Justice investigations."
"Employees who tried to sound the alarm about the creation of fake accounts were fired. Their lives turned upside down," she added.
Some of those workers, as CNN reported this week, are fighting back, and have filed a class action lawsuit in federal court charging that they were targeted for termination for not taking part in the sales scam.
In addition, the Labor Department announced this week it would conduct a probe into the bank's practices.
"Given the serious nature of the allegations, the recent actions of our federal partners, and recent media reports, I have directed enforcement agencies within the Department to conduct a top-to-bottom review," Secretary Tom Perez said.
Following his appearance before the Senate Banking Committee last week--during which Warren lambasted his "gutless leadership"--Stumpf "has another date on the hot seat," this time on Thursday before the House Financial Services Committee.
According to Bloomberg, he "plans to offer House lawmakers the same apology he gave Senators last week."
Wells Fargo, according to Sen. Elizabeth Warren (D-Mass.), took "a small step in the right direction" when it announced Tuesday that it was clawing back $60 million in pay from CEO John Stumpf and Carrie Tolstedt, the former executive who ran the fraudulent program.
The Associated Press reports:
The independent directors at the nation's second-largest bank said Tuesday that Stumpf will forfeit $41 million in stock awards, while former retail banking executive Carrie Tolstedt will forfeit $19 million of her stock awards, effective immediately. Both are also giving up any bonuses for 2016, and Tolstedt will not receive any severance or any other compensation in connection with her retirement, the bank's directors said.
But, according to Warren, that's "nowhere near real accountability," because Stumpf "keeps his job and most of the money he made while massive fraud went on under his nose."
Instead, she tweeted, "Stumpf should resign, return every nickel he made while this scam was ongoing, and face U.S. Securities and Exchange Commission and Department of Justice investigations."
"Employees who tried to sound the alarm about the creation of fake accounts were fired. Their lives turned upside down," she added.
Some of those workers, as CNN reported this week, are fighting back, and have filed a class action lawsuit in federal court charging that they were targeted for termination for not taking part in the sales scam.
In addition, the Labor Department announced this week it would conduct a probe into the bank's practices.
"Given the serious nature of the allegations, the recent actions of our federal partners, and recent media reports, I have directed enforcement agencies within the Department to conduct a top-to-bottom review," Secretary Tom Perez said.
Following his appearance before the Senate Banking Committee last week--during which Warren lambasted his "gutless leadership"--Stumpf "has another date on the hot seat," this time on Thursday before the House Financial Services Committee.
According to Bloomberg, he "plans to offer House lawmakers the same apology he gave Senators last week."
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