Wells Fargo Scandal: Where Was The Board?

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Wells Fargo
Wells Fargo Scandal: Where Was The Board?
Wells Fargo is an American bank founded in 1852 and today operates internationally all around the world with more than 270K employees. In July 2015, Wells Fargo became the world’s most valuable bank with $301.6 billion market capitalization. In the same time company ranked the 22nd in the list of Fortune’s “World’s Most Admired Companies” ranking.
In September 2016, company appeared on the breaking news about the phony/ghost accounts opened by Wells Fargo employees without permission or even knowledge of customers. This was shocking! World’s most valuable bank’s name was on the news; and it was about a fraud case.
Wells Fargo employees were accused of opening or applying for more than 2 million bank accounts or credit cards without customers’ knowledge or permission.
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In return company made more than $2.5 million in fees. These fake accounts were noticed first by the help of an investigation report which held by the LA Times. Soon after this report City of Los Angeles and federal regulators involved in the case and Wells Fargo announced that they are paying $185 million to settle the allegations. But it did not help the top management to close the case and continue their c-suite life. Senator Elizabeth Warren crushed CEO John Stumpf in front of the Banking Committee Hearing. Senator personally questioned the John Stumpf for his accountability for the scam. She asked about why he didn’t resign, did Stumpf give back his bonuses which earned in this period and did he fire any senior executives who is in charge of compliance or retail sales departments. Stumpf and all of the senior executives earned millions of dollars of bonuses but they have fired 5300 branch employees for their actions and he was talking about accountability. This was

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