Former Wells Fargo CEO banned from banking industry and fined $17.5 million

[erpowers]

Source: CNN

Former Wells Fargo CEO John Stumpf on Thursday agreed to a lifetime ban from the banking industry and a $17.5 million fine for his role in leading the bank through its massive fake accounts scandal.

In addition to Stumpf, the US Office of the Comptroller of the Currency fined several other former Wells Fargo (WFC) executives about $40 million in connection to the bank's sales practice misconduct.

Snip

"The OCC's actions are consistent with my belief that we should hold ourselves and individuals accountable. They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed," said Wells Fargo's current CEO Charles Scharf in a statement on Thursday.

Snip

Wells Fargo has struggled with the repercussions from its sales practices scandal for more than three years now. Milestones along the way includes the firing of 5,300 workers for creating millions of fake accounts, a $185 million fine and the two new CEOs to stir the company past its troubles.



Read more: https://www.cnn.com/2020/01/23/investing/wells-fargo-executives-regulator/index.html

[Aristus]

1. I'm guessing his golden parachute is significantly higher than $17.5 million.

He'll shrug this off, as they all do...

[Phoenix61]

2. Exactly. Until their assets match the average

Americans they won’t care. Money may not buy happiness but I’m sure they have more than enough to buy extreme comfort.

[hibbing]

3. of course the article does not mention how much he made (earned?) n/t

[csziggy]

9. Wells Fargo CEO Stumpf retires with $134M

Wells Fargo CEO Stumpf retires with $134M
Matt Krantz
USA TODAY
Oct. 12, 2016

John Stumpf, the embattled CEO of Wells Fargo (WFC), unexpectedly retired from the company on Wednesday effective immediately.

Stumpf's move comes just weeks after he was grilled by two congressional panels over the way the bank handled an alleged scam where upwards of 2 million accounts were created by employees without the knowledge of customers. The accounts were allegedly opened so thousands of employees could meet aggressive sales goals set by management. Stumpf was widely criticized for the way he handled the questioning, pushing the blame to lower-level employees and not holding upper-level executives, including himself, responsible.

Stumpf, 63, is resigning as both CEO and chairman. He has been CEO since June 2007 and has worked for the company for 34 years. The fact that Stumpf, the company's top executive, was also the chairman of the board was another point brought up by lawmakers questioning why the bank didn't act sooner to deal with the widening scandal. The roles are split, now. The company's president and chief operating officer, Tim Sloan, 55, will replace Stumpf as CEO. Sloan was head of the Wells Fargo unit that made loans to large corporate customers and not directly tied to the alleged consumer banking fraud. Stephen Sanger, a former Yoplait USA president and member of the Wells Fargo board since 2003, was named as the board's non-executive chairman.

<SNIP>

While Stumpf doesn't receive a special retirement payout, executive-pay tracker Equilar estimates he'll walk with $134.1 million. The package remains that large even after Stumpf last month agreed to a $41 million clawback following a grilling he received from the Senate Banking Committee reprimanding him for not taking responsibility. He agreed to give up unvested stock, but still owns shares vested in previous years.

https://www.usatoday.com/story/money/markets/2016/10/12/wells-fargo-ceo-retires-under-fire/91964778/

[Yavin4]

4. His punishment? Extreme wealth and forced into not working

Wow, that'll show him. Let that be a lesson to all of you. If you defraud the public, we will make you extremely wealthy and let you chill out for the rest of your life.

[Mosby]

7. He bought a couple nice properties in metro phx

This one in 2018:

https://www.azcentral.com/story/money/real-estate/done-deals/2018/09/24/former-wells-fargo-ceo-john-stumpf-buys-paradise-valley-house/1339311002/

And this one last year:

https://www.usatoday.com/story/money/real-estate/done-deals/2020/01/06/ruth-stumpf-buys-9-5-m-paradise-valley-mansion/2797841001/

[irisblue]

5. CNN said 130 million in '16. Compound interest is a heck of a thing.

https://money.cnn.com/2016/10/13/investing/wells-fargo-ceo-resigns-compensation/index.html

snip--Wells Fargo CEO walks with $130 million
By Matt Egan October 13, 2016: 1:23 PM ET


More at source

[LittleGirl]

6. I just remember the sign

someone made and held on Wall Street after the meltdown in ‘08.
Jump Fuckers

[Silver1]

8. Here:

I tried to post the link but to no avail. Can't post the picture either ...

For those who haven't seen it, do an image search for "Jump you fuckers."

[Bigredhunk]

10. Ugh

Must be nice to just write a check to "pay" for your crime(s).

[nitpicker]

11. Link to BBC

https://www.bbc.com/news/business-51231003

[DenverJared]

12. This is good

In another news, John Kapoor of Insys was sentenced to a prison term plus fine.

Executives are finally being held accountable.

[crickets]

13. So... why is he not going to spend some hard time in prison?

Fines mean nothing to crooks with that much money.