You think your 2020 is off to a bad start? Try being a former Wells Fargo CEO…
As if being the punchline of every fin-twit sh*t-post (ok, maybe Deutsche Bank and Nomura took some of the heat too) isn’t bad enough, two former execs are facing up to $59M in fines from the Office of the Comptroller of the Currency thanks to the massive fake account scandal that happened under their watch.
John Stumpf, or Stumpy as he’s affectionately referred to around the water cooler, agreed to pay a $17.5M fine as a penalty for his oversight during the time when Wells Fargo created millions of fake accounts.
And it gets worse for Johnny. Not only does he have to pay the fine, but he’s also barred from work at any bank ever again. Not that one would hire him…
It takes two to tango, or in this case, create a worse working environment than the Gulf War.
That second dancer, in this case, was Carrie Tolstedt. She led Wells’ community bank until 2016 when the scandal was revealed and oversaw the period when most of the accounts were likely created.
And the OCC isn’t letting Tolstedt off easy. Her trial is still pending but she currently faces a fine of up to $25M, and that number could rise
The bottom line…
Sucks to suck. In addition the John and Carrie, six other former WF employees are facing fines.
This is one of the first times in recent history that individuals have been held responsible for the actions of their company. Fun fact: no execs were punished for their role in the financial crisis. WF doesn’t face any additional fines but is still tarnished by what happened.