For Immediate Release
Wells Fargo Is Too Big To Manage
Public Citizen Files Shareholder Resolution Calling on Wells Fargo to Study Breakup
WASHINGTON - Public Citizen has filed a first-ever shareholder resolution (PDF) at Wells Fargo calling for a breakup study in the wake of the bank’s massive fraud. The resolution, submitted Thursday by Bartlett Naylor, financial policy advocate for Public Citizen’s Congress Watch division, asks the Wells Fargo board of directors to retain independent experts to explore whether the company would be worth more in parts, with the FDIC-insured bank separate from other divisions.
“Roughly 5,300 employees of the community banking division perpetrated a massive fraud by unlawfully opening two million accounts for unwitting customers,” the resolution explains. “Rather than sanction the community banking chief executive, Wells Fargo celebrated her tenure with a $125 million retirement package. Rather than acknowledging a management breakdown, CEO John Stumpf blamed a minority of bad employees. He claimed there was no reason for the employees to commit the fraud. ‘There was no incentive to do bad things,’ Stumpf told the Wall Street Journal. Taking CEO Stumpf at his word, then, we believe he effectively argues that his firm is so large as to be unmanageable.”
Naylor has submitted similar shareholder resolutions in the past two years to Citigroup, JPMorgan and Bank of America. Wells Fargo, once considered among the more conservatively structured of the megabanks with relatively little high risk derivatives activity, has nevertheless committed major infractions of the law in the past decade.
This is the world we live in. This is the world we cover.
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do.
Public Citizen is a national, nonprofit consumer advocacy organization founded in 1971 to represent consumer interests in Congress, the executive branch and the courts.