Fraud

Wells Fargo Executives Forfeit Over $60 Million After Fraudulent Account Scandal

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JM Ashby
Written by JM Ashby

Following the biggest penalty yet issued by the Consumer Financial Protection Bureau and an epic grilling by Senator Elizabeth Warren, Wells Fargo CEO John Stumpf resigned from his position on the Federal Advisory Council which advises the Federal Reserve.

Stumpf has now agreed to forfeit over $41 million in equity and salary while an independent investigation of the company’s practice of opening unauthorized bank accounts proceeds, and another executive has also forfeited an additional $19 million

The bank also said on Tuesday that Carrie Tolstedt, the former head of the community banking division, had left the company and would not receive a severance payment. She forfeited about $19 million in outstanding unvested equity awards and would not exercise her outstanding options during the investigation, Wells Fargo said.

Neither Stumpf or Tolstedt would receive a bonus for 2016, the bank said in a statement.

Stumpf has not yet resigned from his position as CEO as Senator Warren said he should, but that certainly looks more likely now than it did yesterday.

Wells Fargo’s independent investigation would not be taking place today, their executives would still be collecting enormous benefits, and hundreds of thousands of unauthorized accounts may still be open if the Consumer Financial Protection Bureau had not been created or investigated Wells Fargo.

Congressional Republicans fought a years-long battle against the consumer protection agency. They opposed its creation, they opposed its ability to enforce the law, and even they opposed the appointment of an agency director for more than a year.

Senator Warren was once poised to be named the director of the agency, but Republicans blocked her confirmation, forcing President Obama to make a recess appointment.

On numerous occasions over the past 6 years, Republicans attempted to defang the agency by inserting language that would weaken its regulatory power into basic, unrelated government funding bills.

If Republicans had their way, Wells Fargo would still be ripping off millions of customers.

The Consumer Financial Protection Bureau opened its investigation of Wells Fargo after being tipped off by the Los Angeles Times.

  • Username1016

    In Japan, the executives would have killed themselves from shame. Not that that’s a good thing. Just sayin’ — shame would be appropriate here.

  • muselet

    If Republicans had their way, Wells Fargo would still be ripping off millions of customers.

    And the Rs would be cheering WF on.

    –alopecia

  • Badgerite

    Please tell me that someone is going to put all of this into a campaign ad for any and all Democrats running for Congress this election. Especially targeting the young millennial vote.

    • Victor the Crab

      No. The crybaby millennials will just whine out: “WAAAH! We’re all gonna vote for Jill Stein cuz all you dummy poopy head Dims gave the nomination to evil bitch Hillary instead of AWESOME ROCK STAR BERNIE! WAAAH! And if Drumph wins, we’re all gonna blame it on you dummy poopy heads for not doing what we want you to do! WAAAH! You dummy poopy heads! WAAAH!”

      • Scopedog

        Yep.

        It’s amazing to see how many are suffering from tunnel vision and just cannot fucking look at the big picture.

    • Aynwrong

      Exactly. When Democrats talk about this they call it a crime. When Republicans talk about this they call it “the free market.”

  • Aynwrong

    The Republican party has long held that any effort to protect the public from the predations of the financial sector is massive government overreach that will bring about the death of freedom or some such nonsense. It’s one of the brightest lines between the two parties. That this difference isn’t treated like the scandal and threat that it has clearly become is one of the reasons the GOP is still one of our two major political parties.