What Happened at Wells Fargo? (Update)

A few weeks ago, I posted about the Wells Fargo scandal where upper management directed their employees to fraudulently open customer accounts. These unauthorized bank accounts were opened up without customer’s permission and has been a practice in the company since 2011. CEO John Stumpf has set the goal of 8 accounts per customer because, “8 rhythms with great”. You cannot make up a better management fraud story. Since then, over 2 million accounts have been opened for customers.

John Stumpf has taken over this scandal and has reported to congressional meetings that have been investigating the issue. So far, Wells Fargo paid $185 Million in fines and have fired over 5,300 employees – keep in mind that the employees fired were not managers in anyway. The ones who made the decision and enforced the “8 accounts per customer” rule  and punished the employees for not  going along with their scam got off free!

Luckily, the aging slimy CEO Stumpf has finally submitted his resignation after dealing with the scandal – effectively taking the blame for the issue. John Stumpf is not receiving any severance from Wells Fargo – maybe he was getting tired of scamming people. He is, however, leaving with more than $100 million in vested stock, plus accumulated pension and 401(k) benefits exceeding $24 million.

The issue does seem to be settled. The employees who were fired or quit because they were forced to comply with the Fargo scam are taking action against the company, who will probably bow to their demands. The company did step into the slimy fraudulent lime light for a brief second, but, purging Stumpf without severance seems to be a great way to get over this and try to start new.

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