Skip to content
Search AI Powered

Latest Stories

Wells Fargo Chief Resigns From Fed, Faces Calls For Claw Back of Millions

Wells Fargo Chief Resigns From Fed, Faces Calls For Claw Back of Millions

[DIGEST: CNN, Fortune]

In the latest casualty of a nationwide banking scandal, Wells Fargo CEO John Stumpf has stepped down from his role as the San Francisco bank district's representative to the Federal Advisory Council, a group of 12 bank executives that advise the Fed board. As a council member, Stumpf would meet with the Fed's board of governors in Washington, D.C. four times a year to discuss banking matters. A Wells Fargo representative said in a statement that Stumpf "made a personal decision to resign as the Twelfth District’s representative to the Federal Advisory Council" and that his "top priority is leading Wells Fargo."


Earlier, five senators, including Sens. Angus King, Elizabeth Warren, Jeff Merkley, Ron Wyden, and Maria Cantwell, had called for Stumpf's resignation from the board. “It would be ironic if the Federal Reserve, a key federal banking regulator tasked in part with ensuring the fair and equitable treatment of consumers in financial transactions, continued to receive special insights and recommendations from senior management of a financial institution that just paid a record-breaking fine to the Consumer Financial Protection Bureau for ‘unfair’ and ‘abusive’ practices that placed consumers at financial risk,” they wrote in their letter.

A representative for the San Francisco Fed said the board will begin searching for his successor soon.

A CNN analysis found that Stumpf will leave Wells Fargo with a fortune, even if forced out. Even if Wells Fargo fires Stumpf for violating company policy, he would have to forfeit only a portion of a sum totaling $200 million, a combination of cash, Wells Fargo stock, and options. The report also showed that Stumpf received some bonuses for increasing the number of customer accounts. According to Stumpf's 2015 filings, he received $4 million in awards for, in part, growing "primary consumer, small business and banking checking customers" that year.

Credit: Source.

The news comes just days after Stumpf tried to apologize for Wells Fargo's financial misconduct during his two-hour testimony before the Senate Banking Committee. Earlier this month, an investigation revealed that Wells Fargo employees opened more than two million phony accounts to reach projected sales targets. In response to the allegations of fraud, the company fired about 5,300 low-level employees. Additionally, the Consumer Financial Protection Bureau fined Wells Fargo $185 million for illegal banking practices.

Sen. Elizabeth Warren (D-Mass.) proved to be Stumpf's harshest critic

during his testimony. Sen. Warren called Stumpf out for his "gutless leadership" as she took her turn at the podium. "You squeezed your employees to the breaking point so they would cheat customers and you could drive up your stock," she said.

Sen. Warren also admonished Stumpf for his lack of personal accountability for his role in the scandal. "So, you haven't resigned. You haven't returned a single nickel of your personal earnings. You haven't fired a single senior executive," she said. When Stumpf attempted to deflect direct questions from the Senator, she called for his resignation and claw back of his pay. "This is about accountability. You should resign. You should give back the money that you took while this scam was going on," Sen. Warren continued. "And, you should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission."

The House Financial Services Committee has scheduled a hearing on the matter for Sept. 29. Stumpf will testify.

Credit: Source.

More from News

Characters from 'Win or Lose'
Disney/Pixar

Disney Slammed For Adding Christian Character To Show After Cutting Trans Storyline

Disney came under fire for cutting a trans storyline and adding an openly Christian character in the new animated Pixar series Win or Lose on Disney+.

The contradictory pivot comes as part of the company's new commitment to significantly alter its diversity, equity, and inclusion initiatives in response to a cultural shift towards conservatism pushed by Republican President Donald Trump's second White House term.

Keep ReadingShow less
Rep. Al Green
WIN MCNAMEE/POOL/AFP via Getty Images

Democrat Who Was Kicked Out Of Trump's Speech Posts Defiant Message In Face Of Censure Vote

Before facing a censure vote for disrupting Republican President Donald Trump's address to a joint session of Congress, Texas Democratic Representative Al Green vehemently expressed that he would not back down from his fight against the injustice facing constituents relying on Medicaid.

On Tuesday, Green stood up during Trump's mostly partisan congressional address and heckled Trump after the President claimed he had won a governing mandate from voters, to which Green yelled, “You have no mandate!"

Keep ReadingShow less
Cassandra Peterson as Elvira, Elon Musk
Michael Tran/FilmMagic; Andrew Harnik/Getty Images

MAGA Fumes After Elvira Donates Tesla To NPR With Blunt Message For Musk In Viral Video

Actor and activist Cassandra Peterson—best known for playing the gothic horror character Elvira, Mistress of the Dark—had social media users cackling after she mocked billionaire Elon Musk by painting "Elon sux" on the side of her Tesla before donating it to NPR, angering Trump supporters in the process.

In her debut video, Peterson steps away from her iconic Elvira persona. Gone are the signature brunette wig and the plunging black gown — instead, she sports a casual black beanie.

Keep ReadingShow less
Back view shot of a young guy, dressed in a suit. He looks out into Times Square.
Photo by Saulo Mohana on Unsplash

People Debate Which Professions Will Die Out Within A Decade

With the rise of AI and automation, many careers feel like they could be on the chopping block.

As much as some life advancements in science and labor have been brilliant, many human-based positions are deemed irrelevant.

Keep ReadingShow less
ghost town in western United States
Nadia Jamnik on Unsplash

Americans Describe The Creepiest Town They Ever Visited On A Road Trip

I've lived in a small town in far Northern Maine for most of my life.

Let me just say, there's a reason Stephen King bases most of his horror stories in rural Maine.

Keep ReadingShow less