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Old 09-21-2016, 07:16 AM   #41
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Why did this take so long to come into light ? I watched the CEO being grilled by Lizzy Warren yesterday and I can't say I disagree with anything she said. These things will only continue until these executives are held accountable, have to pay back their bonuses and are given hard time.
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Old 09-21-2016, 08:47 AM   #42
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The story doesn't sound complete. Employees created unauthorized accounts using your name and address. You would've received the paperwork and debit card or credit card the bank sent. If you didn't want them you would call the bank and close them. If you kept them open you would've received statements. How can you be charged overdraft fees if you never use them? Among all the unauthorized accounts, how many accounts generated how much fees the bank didn't reverse? I doubt the consumers affected actually paid much in fees.
Agree. Hard to see how WF could benefit from these phantom accounts? Clearly sounds like a case of poorly designed employee incentives. Question wil be who knew what and when. 5,300 people getting fired is remarkable. Will be interesting to see how high the "rot" goes. Let's hope other banks have reviewed their controls and this hasn't happened elsewhere. Inconceivable that senior people would knowingly endorse this practise. But who knows?
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Old 09-21-2016, 08:55 AM   #43
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The big problem is trying to prove that they caused the fraud... or knew about it and did nothing... most laws require intent to put someone in jail... as I used to say to coworkers when one company I worked at went under 'it is not against the law to be stupid'.... (then again, one of the top execs was taking kickbacks and did go to jail)....

I would think that the lady exec that ran the retail unit that walked away with millions would be more liable than the CEO...

I also would like to see some go to jail.... but if you remember Enron, where they did much worse than here, it was difficult to prosecute... but, the did put a number of people in jail...

Now, if they can find a 'smoking gun' on one of the execs.... or flip a lower level manager, they might be able to do something... I just do not think the Justice Dept really cares....
Agree. Except for the part about the JD not caring. Most politicians love to see execs go to jail. Especially bankers. I would think the CEO is toast.
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Old 09-21-2016, 10:02 AM   #44
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Employees that reported the bad/illegal things they were being asked/told to do to the Ethics hotline, were fired soon afterwards.
One even emailed the CEO directly to report the bad things, and of course the CEO claimed he couldn't remember it.
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Old 09-21-2016, 10:12 AM   #45
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Did anybody see any of the testimony from the CEO today

Man, did he look bad... Warren skewered him.....
Absolutely took him apart. Appears he got his hand caught in the cookie jar. Maybe that's why he had his right hand all bandaged up.

If this is "mostly" true, he (and maybe others) should be sent to jail and forfeit "some" of their net worth. Maybe he could share a cell with Bernie Madoff. Bernie has a lease that doesn't expire until 2139.
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Old 09-21-2016, 11:42 AM   #46
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Agree. Except for the part about the JD not caring. Most politicians love to see execs go to jail. Especially bankers. I would think the CEO is toast.

Since few (if any) went to jail over the 2008 financial disaster I do not see people going to jail over this...
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Old 09-21-2016, 11:47 AM   #47
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Why did this take so long to come into light ? I watched the CEO being grilled by Lizzy Warren yesterday and I can't say I disagree with anything she said. These things will only continue until these executives are held accountable, have to pay back their bonuses and are given hard time.
Yes, I have to agree that she was spot on... and I am not a fan of her...

I have not looked, but she must have been a prosecutor... how she would cut him off when he was going off line or making up some BS answer... how she would say "I take that as a no" when he would not answer a question...


I do not feel sorry for Wells.... and do hope somebody goes to jail... at a minimum lose a big part of their bonus...


BTW, I saw one guy on TV who said they had opened up 17 accounts in his name and was taking out money from his main account to fund them... I think it was over time, but still... how long does it take to say "I am outta here"...
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Old 09-24-2016, 08:11 AM   #48
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Since few (if any) went to jail over the 2008 financial disaster I do not see people going to jail over this...
Agree but nevertheless the desire to send them there is growing.
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Old 09-24-2016, 08:28 AM   #49
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Agree but nevertheless the desire to send them there is growing.
Not so sure the desire to see bankers punished is increasing - but it is more determined. This unlawful activity seemed pretty widespread. The Bloomberg headline this morning caught my attention
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Wells Fargo Sued Over Firings for Missed Account Quotas
Wells Fargo Sued Over Firings for Missed Account Quotas - Bloomberg

At this stage there is no way to know if that lawsuit has merit, but it seems (to me, at least) appropriate that this additional aspect of the wrongdoing also figure in the story. If employees were let go on a regular basis for not meeting quotas, it will be more difficult for the bank to show that this was not systemic and senior management not aware.
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Old 09-24-2016, 09:04 AM   #50
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I have a 401K with Wells Fargo, and they added a blurb about the recent scandal, and the blurb has prevented my computer from accessing my account. Perfect.
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Old 09-24-2016, 12:01 PM   #51
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Just went to a local WF branch this morning to close one my account. Seems pretty friendly to me. I have enough bank accounts else where, the WF I opened was only for temp use.
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Old 09-24-2016, 07:45 PM   #52
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I wish I had an account with them just so I could close it.
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Old 09-24-2016, 08:10 PM   #53
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I wish I had an account with them just so I could close it.
And, just what makes you think you don't have an account with them?
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Old 09-24-2016, 09:03 PM   #54
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And, just what makes you think you don't have an account with them?
Ha, made me laugh.
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Old 09-24-2016, 09:36 PM   #55
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Since few (if any) went to jail over the 2008 financial disaster I do not see people going to jail over this...

Another thing is the bad behavior in 2008 was so widespread it was tough to focus blame. This time it's a lot easier to focus on WF management


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Old 09-24-2016, 10:32 PM   #56
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And, just what makes you think you don't have an account with them?
Good one!!!
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Old 10-12-2016, 04:37 PM   #57
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Bloomberg reports Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts - Bloomberg

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John Stumpf, who led Wells Fargo & Co. through the financial crisis and built it into the world’s most valuable bank, stepped down as chief executive officer and chairman, bowing to public outcry over legions of accounts opened by his employees for customers who didn’t request them.
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Old 10-12-2016, 10:55 PM   #58
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He has to hang his head in shame, walking away with up to $137 Million

Hey, now he has time to join this forum
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Old 10-16-2016, 11:33 AM   #59
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Firing 5,300 employees is a smoke screen! Not only that, I would be willing to bet that not all of these where fired for this specific reason.

You would have to be pretty naive to believe that 5,300 employees came up with this scam on there own. It had to come from higher and was taught as business as usual.
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