by Bob Walsh
Wells Fargo is a large banking concern. They are in fact the second largest bank in the U. S. They recently got their collective tit in a wringer over some very shady dealing. Their bank personnel A(salesmen in reality) were given what many people say were unrealistically high sales goals. They did not want to be unemployed so they got creative, often opening "new" accounts and moving money around without the knowledge or permission of the people who actually owned the money. This has been going on for a LONG time, perhaps as long as 15 years.
They finally got bit on the butt. The bank got nailed with huge civil penalties and has been running some interesting "mea culpa" commercials on the tube.
Now the bank's board of directors has moved to retrieve about $75 million from two retired executives who allowed this situation to develop without a care in the world.
The bank has had to shell out $185 million in fines and penalties and set aside another $110 million to deal with class action legal problems. Former community bank executive Carrie Tolstedt is having to return $47.3 million in stock options. Former CEO John Stumpf will lose $28 in compensation. This is in addition to the $19 million Tolstedt and $14 million Stumpf have already lost.
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