Former Wells Fargo boss Stumpf blamed by board for sham account debacle

Former Wells Fargo boss Stumpf blamed by board for sham account debacle

The report put much of the blame on Tolstedt, who grew up in Kimball and graduated from the University of Nebraska-Lincoln. A full examination of the facts will produce "a different conclusion", the attorneys said. However a year ago during same quarter Wells Fargo & Co (NYSE:WFC) reported $0.99 EPS. However, Sloan said that the bank was still reviewing records and some management has been fired in recent months.

"We accept the Board's findings as a critical part of our journey to rebuild trust", Sloan said.

It's another example of how Wells Fargo executives repeatedly proved unable - or unwilling - to take the hard actions required to fix major flaws the bank's cultural and incentive problems that fueled the scandal.

"The Board was regularly engaged on the issue; however, management reports did not accurately convey the scope of the problem", the board's report said. A sufficiently large "no" vote might be embarrassing enough to prompt the bank to make changes on its own, however. Wells Fargo previously acknowledged that aggressive sales incentives and pressure from management prompted many employees to cheat to meet their goals and keep their jobs.

"There's a tremendous amount of pressure from regulators to throw someone under the bus", said Duke Law School professor James Cox, who specializes in corporate and securities law. Wells was aiming for as many as eight financial "products" per household.

Carrie Tolstedt, community bank unit head, also is being terminated retroactively for cause and giving up an additional $47.3 million of pay. The stock touched its high share price of $59.99 on 03/01/17 and the stock also touched its Lowest price in the last 52-weeks of trading on 10/04/16 as $42.90.

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It said Mr Stumpf had been "too slow to investigate or critically challenge sales practices" at the bank, or to "appreciate the seriousness of the problem". Stumpf's long history with Tolstedt "influenced his judgment" and even led him to ignore doubts about her from directors. The bank and its board both declined to comment. Since taking that position, Sanger has clawed back tens of millions of dollars in stock awards and compensation due to Stumpf and Tolstedt. Royal Bank of Canada reaffirmed a "buy" rating and issued a $52.00 price target on shares of Wells Fargo & Co in a report on Wednesday, January 11th.

As for the board, the report noted that "members believe they were misinformed" by a presentation made to the risk committee in May 2015.

"Tolstedt never voluntarily escalated sales-practice issues and, when called upon specifically to do so, she and the community bank provided reports that were generalized, incomplete and viewed by many as misleading", the authors wrote.

The report criticized the board for not centralizing the risk functions at the bank earlier, for not requesting more detailed reports from management and for not insisting Stumpf get rid of Tolstedt sooner. The board said Carrie Tolstedt, former head of community banking, was sacked with cause. So employees opened additional accounts without customers knowledge or consent, and moved money around customers' accounts to create the impression they were real. There was no joined-up effort by either the bank's human resources or legal divisions to track and analyze the problem.

In a report released on 4/06/2017 Jefferies & Co increased the stock price target of Wells Fargo & Company (NYSE:WFC) to $62.00 indicating a possible upside of 0.12%. Instead, she reinforced the high-pressure sales culture.

Still, Sanger said the board has "total confidence in Tim" and is "very, very encouraged" by the actions he took once he became CEO, including replacing Tolstedt. Wells Fargo's vision is to satisfy our customers' financial needs and help them succeed financially. The OCC's goal is to see whether the problems at Wells were isolated.