Wells Fargo CEO John Stumpf’s Last Stand

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Wells Fargo CEO John Stumpf resigned on Wednesday and Elizabeth Warren finally got the scalp she wanted. Bank employees opened about two million unauthorized customer accounts on Chairman Stumpf’s watch. The scam led to bonuses for the employees and extra fees and overdraft charges for the unsuspecting customers.

Stumpf will get no severance package and he has  forfeited $41 million in unvested equity. Also, the bank has fired 5,300 employees and agreed to pay a $185 million dollar fine.

Additionally the former CEO will be tied down naked in the desert over a termite hill.

I made up that last one. Stumpf’s not exactly losing the shirt off his back. He earned about $120 million during his career at Wells Fargo.

Wells Fargo Thrived After 2008 Crisis

A WSJ editorial says that, despite the scandal,  Stumpf has been “one of the most successful American CEOs of recent times:”

Our colleague Dennis Berman reports that in nine years he produced some $149 billion in profits and saw an increase in market cap of $124 billion. Wells Fargo tried to turn down the government’s rescue funds during the 2008 financial panic because it didn’t need the help, only to be forced by Treasury to take the money.

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