Sharjah Islamic Bank wins Wells Fargo "Straight-Through Processing Award"
- Author: Anthony Vega Sep 16, 2016,
Sep 16, 2016, 8:32
To regain the trust of its customers, the company has announced to eliminate its product sales goals in its retail banking segment.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation.
In an interview with The Wall Street Journal, Stumpf said there was no problem with the culture at the bank, and that the blame should be placed on individual employees. The New York Times said regulators estimate about two million such accounts - 1.5 million bank accounts and 565,000 credit-card applications.
All told, Wells Fargo paid a total of $185 million in fines, but didn't admit any wrongdoing. Wells Fargo has said that about 10 percent of the 5,300 workers fired were at the level of branch manager or higher, but it's not clear whether top-level executives will be held accountable for the problematic practices. 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.
The allegations have tarnished Wells Fargo's reputation and threatened a key money-maker for the company: the ability to sell customers multiple accounts, also known as "cross-selling". Although the bank has eliminated sales goals for retail staff, Stumpf said "cross-selling" products from various businesses to customers is still important to growing its business. The financial expert thinks Buffett most likely shares the sentiment of disgruntled employees and would be all in favor of "tying Stumpf up to the Wells Fargo stage coaches and letting the horses run", Schiffer tells TheDCNF.
As first noted by Fortune Magazine, Tolstedt, 56, retirement package is expected to reach almost $125 million, including thousands of shares of Wells Fargo stock, options, and restricted shares.
The Wells Fargo case could be used to further galvanize criticism that the Obama administration has not done enough to banking industry executives responsible for bad behavior, consumer advocates say.
As a parting gift, Tolstedt will earn a purported $125 million payday, the lion's share of which stems from the exercise of stock awards that she received from the bank along the way.
Wells Fargo shares closed down almost 1% at $46.52 Wednesday.
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.
"We're going to do this in a way that protects our business model", he said to an audience of investors and analysts.
Elizabeth Warren will get her chance to rip into Wells Fargo one week from today when the Senate banking committee holds a hearing on what the senator has called "a staggering fraud".