WELLS FARGO REGIME OF FRAUD
WELLS FARGO CEO PRESIDES OVER CUSTOMERS ABUSES, LEAVES WITH FULL PAY
After a tumultuous stay as CEO of Wells Fargo, Tim Sloan is finally out as Chief Executive after his initial appointment in 2016. Sloan has presided over a tenure marked by consumer rip-offs and criminal investigations that cover nearly every Wells Fargo business line. Mr. Sloan has been unable to move the bank forward after scandals that involved hundreds of thousands of Wells Fargo customers and the creation of “fake accounts” at bank branches throughout the United States at America’s fourth largest bank.
Despite investigations by the Federal Reserve, the Justice Department, the Securities Exchange Commission, the Office of the Controller of Currency, and the Consumer Financial Protection Bureau, Sloan received a 5% pay increase in 2018 and leaves with his full pay intact. Sloan was rebuked by Democrats and Republicans in a combative exchange with the House Financial Services Committee earlier last month. But the real cause for alarm was probably not a history of rampant customer fraud. Instead, it was most likely the pocketbooks of big bank shareholders as Wells Fargo stock drastically under-performed overall bank stocks by nearly 400%.
Like all matters at Wells Fargo, the reason for Mr. Sloan’s exit isn’t the thieving deception of customers and continual criminal investigations, it’s stock prices pure and simple – Rob your customers but don’t disappoint your shareholders.
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