Former CEO John Stumpf (a major crook in the subprime scandal) was previously fined $41m out of the $200m he made overseeing a complex fraud scheme that stole the identities of over 2,000,000 Wells Fargo customers — and will now have to repay another $28m, but will not face criminal charges.
Whistleblowers who reported Wells Fargo’s crimes under Stumpf’s were fired and had their names added to an industry-wide blacklist that kept them from working for any of Wells Fargo’s competitors.
Carrie Tolstedt, the former head of Wells Fargo’s community banks, will lose just under half of the $125M bonus she received after “retiring” when her role in the criminal enterprise was revealed. Wells Fargo received a $27M tax credit for this payment. Crime pays for the big banks.
The board says it has now found evidence that the bank’s top execs were committing fraud as far back as 2002 (previously, the fraud was believed to have begun in 2011). For over a decade, the big banks have been rigging currencies, counterfeiting securities and participating in other illegal acts and no one has gone to jail- not even for a day.
Wells Fargo senior executives are returning $180 million total in pay. The board reported that it is among the largest corporate clawbacks ever and yet it is a fraction of the money made. This is nothing but a public relations punishment that serves no other purpose but to placate the public. Wells Fargo operates a centralized management structure and unethical sales strategies are enmeshed in the culture at Wells Fargo. Until people start going to jail this behavior will not stop because it is profitable.
Wells Fargo admits that sales misconduct occurred since at least 2002 and yet no state or federal law enforcement has taken action to prosecute this criminal conduct.
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