Despite the hefty payouts, the banking giant admits no wrongdoing
Wells Fargo Carrie Tolstedt Exec Who Headed Phony Accounts Unit Collected $125 Million
Wells Fargo was fined $185 Million. This money will be taken from the shareholders and will not affect employee bonuses.
Ladies and gentlemen, this is a bulls eye as to what’s terribly wrong in the USA, why so many people no longer trust our republic, our leaders, and the entire system.
Please share widely!
If there was no wrongdoing, why were 5,300 workers fired? If there was no wrongdoing, why pay a $185 Million Dollar Fine? Oh, I get it, that’s a payoff to your pals in government so that you and your “innovator, top of their class, Rhode Scholar, Ivy League” pals can keep things going, collect a $125 Million dollar parachute, and use that money to “contribute” to political campaigns.
The 5,300 workers who were central to this improper behavior that was not a wrongdoing but wrong enough to get them fired happened over a period of FIVE YEARS while Ms. Tolstedt was in charge. It’s not like one day she opened the books and said “Wow, would you look at that!”. She knew about it for FIVE YEARS and she gets $125,000,000 while Bernie Madoff is in prison?
If there was no wrongdoing…..here it is folks: The management at Wells Fargo fired employees who falsified sales reports ad ripped off Wells Fargo at bonus time. Screw with management and get fired. Screw the customers and get a promotion, hell, get a $125,000,000 parachute!
one of you is asking and which is answering?
I’m talking to myself!
Honestly, this stuff needs to be shouted from the rooftops. Poor Americans are getting their credit scores raised because of this sort of thing and as a result, paying higher interest fees….which wind up sewing up the fabric of $125,000,000 parachutes for 56 year old “innovators” ……
…poor Americans are getting their credit scores LOWERED (and don’t get me started on the things that should never result in a lower credit score)?
I had no idea that even checking ones score will sometimes lower it. I’m an odd duck in that I have not borrowed money since the 1980’s, not that I am wealthy, just frugal. I’ve never known or cared what my credit score was but I do understand that it’s critical to most Americans.
Others checking you score might (like when you apply for loans, mortgage etc) But n looking at pretty much all the sites – checking ones own score is a soft inquiry which does not effect score.
What I find funny is the fact that after many many years we paid off our mortgage and save to pay cash for cars – so no car loan – does effect out score – lowering it due to lack of recent installment loan information. So being diligent in paying off the mortgage and thrifty lowers a credit score.
…just like there’s often no reason for the score to be checked in the first place (most job applications, for example).
I am surprised by how little coverage this story is getting and also how small the fine is. (Maybe there are some limits or restrictions under the law being used; I don’t know). It seems that this fine should easily be one to two zeros larger than it is. As a consumer issue, in terms of widespread deception willingly committed by a large number of employees, this is much worse than what Volkswagen did with their diesel cars. That issue is costing VW about $15B.
The employee firings almost make it worse. The company is saying that what those people did was wrong and not what the company stands for. If it is was 5 people or even 100, that would be ok. With 5,300, those actions are the fundamental core of the culture of the company. Almost all the executives should be fired.
I agree with John here. This really does show the special treatment the banks get to our detriment.
…when people tell me we have a “Liberal Media”. We have a corporate media and that’s why this story is getting so little coverage. Wells Fargo got caught doing want so many corporations do. Nothing to see here people, move along. Dancing With The Stars is on, look at Ryan Lochte!
…of the shareholder/director system of corporate governance, but I wouldn’t mind it as much if shareholders actually provided some oversight and kept their directors and executives honest. If I were a shareholder I’d be upset that I’d be the one feeling the pinch when it was people actually managing the joint that allowed these things to happen.
According to public sources, a “Carrie Tolstedt” lives at:
340 Corrie Pl, Alamo, CA 94507
(925) 820-0690
Since this is public information, I see nothing improper about posting it here. Perhaps it is time for a grass-roots political movement to show its “appreciation” for her behavior.
https://www.google.com/maps/place/340+Corrie+Pl,+Alamo/@37.845865,-122.0193314,159a,20y,76.31h,44.94t/data=!3m1!1e3!4m2!3m1!1s0x0:0xba4fcf146487b2f6
1. Wells Fargo employees actively engage in dishonest practices that help them reach sales targets. These practices abuse the accounts of Wells Fargo clients, sometimes resulting in lowered credit scores and other financial losses. This activity went on for at least five years with the knowledge of Wells Fargo management.
2. Wells Fargo management, when it discovered some of these bad actors, dismissed as many as 5,300 individuals over the course of five years.
3. When discovered by the federal government, Wells Fargo admitted no wrongdoing and presumably to avoid any criminal charges, agreed to pay a fine of $185,000,000.
4. $185,000,000 may seem like a lot of money, but the reality is that this fine will ultimately cost the company much less that that, because of their ability to write off the payment as a tax deduction.
5. Finally, $185,000,000 is a relatively small amount of money to Wells Fargo when one considers the fact that the same company was pay one person a a retirement bonus of $125,000,000. This person was also in charge of the division that contained all these bad actors. So why pay her $125,000,000 if she is leaving? My hunch is to keep her quiet.
In the end, we as citizens get a “feel good” headline and say WOW $185 Million, that will show them whose boss…while in truth, the bankers are laughing so hard, they are wetting the pants of their Dolce & Gabbana suits.
Population of the USA is about 318.9 Million.
Wells Fargo paid “us” $185 million, so that’a about 58¢ per citizen.
On the same event, they paid one of their people $125,000,000.
Don’t spend your 58¢ foolishly. All we need is to prosecute 173 more banksters and we can get that up to $100, or what Ms. Tolsted probably spend on lunch today.