WELLS FARGO CLAWING BACK $75.3 MILLION MORE FROM FORMER EXECUTIVES IN FAKE ACCOUNTS SCANDAL!
Nathan Bomey, and Kevin McCoy
Wells Fargo said Monday it is clawing back $75.3 million in additional compensation from top former executives after an internal investigation of the bank’s unauthorized accounts scandal found that the ex-leaders acted too slowly to investigate allegations of “improper and unethical behavior” in retail sales practices reaching back more than a decade.
The clawbacks are among the highlights of a report that said aggressive sales practices in the community banking division of Wells Fargo (WFC) for years distorted “culture and management performance” and “created pressure on employees to sell unwanted or unneeded products to customers and, in some cases, to open unauthorized accounts.”
Produced by independent board members of the bank along with outside legal investigator, the report blasted Wells Fargo executives for failing to properly investigate the activity, cultivating an atmosphere of unrealistic expectations and hiding information about the extent of the crisis that ultimately led to millions of dollars in fines, plus lawsuits and additional investigations.
Wells Fargo board Chairman Stephen Sanger also acknowledged in a Monday conference call with reporters that board members “could have pushed more forcefully to change leadership at the community bank.” “I think we have taken full responsibility to ensure that changes were made to make sure this never happens again,” said Sanger.