• Wells Fargo scam latest in a string of infractions

    Millions of counts of fraud and identity theft committed continuously and regularly over a period of years. Yet not a single person goes to jail.



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    1. oyarde's Avatar
      oyarde -
      I have a line of credit there , fairly low interest . I do not use it . I did use it once for about 12K , I was making a payment back ea month of about 10 percent of it . They called me halfway through wanting to know if I would be interested in paying it off sooner . I got off the phone and was wondering what was wrong with them , if I wright a check for the whole thing they will get no interest . I have known since then there was something wrong there .
    1. timosman's Avatar
      timosman -
      http://www.npr.org/sections/thetwo-w...rs-record-fine

      September 13, 2016



      A federal agency used her Wells Fargo unit as a cautionary tale, imposing the largest fine it's ever levied. Her bank fired some 5,300 employees for acting "counter to our values." But questions are now circulating about Carrie Tolstedt, the unit's leader, who's set to depart her post with $124.6 million in stock and options, and whose compensation for the five years targeted by the Consumer Financial Protection Bureau included a yearly incentive bonus of $5.5 million in stock, to go along with her base pay and other bonuses.

      Many of those questions were raised in a Fortune story Monday that wondered whether the situation was ripe for Wells Fargo to try to "claw back" some of the stock options it had awarded Tolstedt, who exits after years of heading Wells Fargo's huge community banking division.

      If you're catching up to this story, here's how NPR's Yuki Noguchi reported it today for our Newscast unit:

      "When Carrie Tolstedt's retirement was announced in July, Wells Fargo CEO John Stumpf called her a 'dear friend,' 'role model' and 'standard-bearer for our culture.'
      "Less than two months later, the bank agreed to pay the largest penalty ever imposed by the Consumer Financial Protection Bureau — $185 million — for creating more than 2 million unauthorized customer accounts over five years. Wells Fargo says Tolstedt's retirement was a personal decision, and that her stock holdings were earned over her 27-year tenure."

      The Fortune article seemed to hit a nerve: One day later, Wells Fargo announced it will eliminate all product sales goals in retail banking, as of the start of 2017.

      That drastic change was announced just two months after Wells Fargo said Tolstedt would retire at the end of 2016. Weeks after that announcement, Tolstedt handed off her duties to another executive.

      When we contacted Wells Fargo to ask about the situation Tuesday, senior vice president Mark Folk said Tolstedt is remaining with the company through December to help the transition process.

      Folk says Tolstedt's $124.6 million comes from "stock that she either owns outright" or in the form of options.

      As for the size of Tolstedt's holdings, Folk noted that she was at the company for nearly 30 years. When we asked about a potential "claw back" of millions in compensation for Tolstedt, Folk said Wells Fargo isn't talking about that today.

      Wells Fargo saw a number of changes during Tolstedt's tenure — particularly at the end of it. Consider that in 2014, around the middle of the roughly five-year period reviewed by the CFPB, Wells Fargo set a record in reporting net income of $23.1 billion, on revenue of $84.3 billion. Tolstedt's unit accounted for around $14 billion of that year's net income.

      In that year, as in every year in the 2011-2016 period that the CFPB covered in its consent order, Tolstedt collected $5,500,000 in stock as her portion of the performance share award that's split among Wells Fargo's top executives, according to the bank's proxy reports. That stock normally takes a three-year period to vest fully.

      As the Fortune piece notes, Tolstedt wasn't singled out in the CFPB's actions, and it's not clear what if any involvement she had with her unit's use of the tactic of creating fake accounts to trigger incentive bonuses. But the magazine also spoke to a banking reform advocate who asked about claw-back policies: "If they don't apply here, when will they apply?"
    1. AZJoe's Avatar
      AZJoe -
      Millions of counts of fraud and identity theft committed continuously and regularly over a period of years. Yet not a single person goes to jail.
    1. dean.engelhardt's Avatar
      dean.engelhardt -
      After Wells Fargo pays the government fine and give Tolstedt a nice $125M retirement bonus, they still turn a hefty profit. I wonder about the 5,300 employees being fired? How many were low wage earners, knowing nothing of the fraud, and got fired to make Wells Fargo look good? Crony capitalism at it's finest.
    1. Brian4Liberty's Avatar
      Brian4Liberty -
      Quote Originally Posted by AZJoe View Post
      Millions of counts of fraud and identity theft committed continuously and regularly over a period of years. Yet not a single person goes to jail.
      Good summary. Front page.
    1. oyarde's Avatar
      oyarde -
      If you are working some place that screwed up , you are better off they let you go .
    1. timosman's Avatar
      timosman -
      Quote Originally Posted by oyarde View Post
      If you are working some place that screwed up , you are better off they let you go .
      The problem is most places are screwed up.
    1. oyarde's Avatar
      oyarde -
      Quote Originally Posted by timosman View Post
      The problem is most places are screwed up.
      True , but ya do not want to end up working at one that is so screwed up people start thinking about wanting to jail you for fraud after you quit or get fired.
    1. timosman's Avatar
      timosman -
      Quote Originally Posted by oyarde View Post
      True , but ya do not want to end up working at one that is so screwed up people start thinking about wanting to jail you for fraud after you quit or get fired.
      That is something you do not know until you start working there.
    1. osan's Avatar
      osan -
      Quote Originally Posted by oyarde View Post
      If you are working some place that screwed up , you are better off they let you go .

      Unless you have a wife and three children to feed, clothe, house, keep healthy, etc. and so on...
    1. oyarde's Avatar
      oyarde -
      Quote Originally Posted by osan View Post
      Unless you have a wife and three children to feed, clothe, house, keep healthy, etc. and so on...
      Yeah you have to have some money put back .
    1. timosman's Avatar
      timosman -
      Quote Originally Posted by osan View Post
      Unless you have a wife and three children to feed, clothe, house, keep healthy, etc. and so on...
      In that case just suck it up and take it like a man.
    1. osan's Avatar
      osan -
      Quote Originally Posted by timosman View Post
      In that case just suck it up and take it like a man.
      Tell that to your hungry children.
    1. oyarde's Avatar
      oyarde -
      I am trying to figure out where the restitution to customers comes from . If the accounts were all fake , would that not be created with the banks money ?
    1. timosman's Avatar
      timosman -
      Quote Originally Posted by osan View Post
      Tell that to your hungry children.
      I was not suggesting leaving the job if your are not in a position to do so. Which part of suck it up did you not understand?
    1. osan's Avatar
      osan -
      Quote Originally Posted by timosman View Post
      I was not suggesting leaving the job if your are not in a position to do so. Which part of suck it up did you not understand?
      I guess you lost me somewhere with that. Probably not important enough to bother explaining it to my thick self.
    1. Brian4Liberty's Avatar
      Brian4Liberty -
      Quote Originally Posted by oyarde View Post
      I am trying to figure out where the restitution to customers comes from . If the accounts were all fake , would that not be created with the banks money ?
      I believe that the real customers were charged various fees on the fake accounts created in their names. So the damages to customers would be the nickel and dime (or $20-$50) charges, plus time and stress trying to resolve the problems.
    1. oyarde's Avatar
      oyarde -
      Quote Originally Posted by Brian4Liberty View Post
      I believe that the real customers were charged various fees on the fake accounts created in their names. So the damages to customers would be the nickel and dime (or $20-$50) charges, plus time and stress trying to resolve the problems.
      Ahh , so the fake accounts were real people and not fictitious . Oh yeah, that is bad .
    1. oyarde's Avatar
      oyarde -
      So , then , there really were very many thieving people involved in this . That is a helluva lot of thieving culture in an area where you try and hire honest people to avoid it . So Wells is like a Cult ?
    1. timosman's Avatar
      timosman -
      Quote Originally Posted by oyarde View Post
      So , then , there really were very many thieving people involved in this . That is a helluva lot of thieving culture in an area where you try and hire honest people to avoid it . So Wells is like a Cult ?
      In case you did not know most companies are cult like at the moment. Let's say thinking is heavily discouraged.


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