After nearly a decade of systematic fraud, multiple investigations, Congressional hearings, and billions in penalties, the Wells Fargo fake accounts scandal concludes with a stark scorecard that defines two-tiered justice in American finance: 3.5 million fraudulent accounts affecting millions of …
Wells FargoJohn StumpfCarrie TolstedtDepartment of Justicecorporate-fraudwells-fargotwo-tiered-justicecorporate-accountabilitysystemic-analysis
The Department of Justice announces it will not bring criminal charges against any Wells Fargo executives for their roles in the fake accounts scandal, instead accepting a deferred prosecution agreement with the corporation. Despite Wells Fargo’s admission that “top Community Bank …
Department of JusticeWilliam BarrWells Fargocorporate-fraudwells-fargodojprosecutorial-discretiontwo-tiered-justice
The Federal Reserve Board imposes an unprecedented enforcement action against Wells Fargo, restricting the bank from growing beyond its total asset size as of December 31, 2017—approximately $1.95 trillion. The asset cap represents the most severe punishment the Fed has imposed on a major bank in …
Federal ReserveJanet YellenWells Fargo Boardbanking-regulationwells-fargofederal-reservecorporate-accountability
Wells Fargo announces that its fake accounts scandal affected approximately 3.5 million accounts—a 67% increase from the initial estimate of 2.1 million accounts disclosed during the 2016 settlement. The revised analysis covers January 2009 to September 2016, nearly twice the timeframe of the …
Wells Fargo CEO John Stumpf resigns effective immediately, ending his 34-year career at the bank amid the fake accounts scandal. Despite calls from Senator Elizabeth Warren and others for him to forfeit his compensation and face criminal charges, Stumpf departs with approximately $130-137 million in …
John StumpfWells Fargo BoardTimothy Sloancorporate-fraudwells-fargoexecutive-compensationcorporate-accountability
Following intense Congressional pressure and public outrage, Wells Fargo announces that CEO John Stumpf will forfeit $41 million in unvested stock awards and his 2016 salary and bonus. The clawback represents the board’s first attempt to impose financial consequences on senior leadership for …
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Wells Fargo CEO John Stumpf testifies before the Senate Banking Committee in a hearing titled “An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response.” Senator Elizabeth Warren delivers a devastating confrontation, accusing Stumpf of “gutless …
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The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, and Los Angeles City Attorney announce a combined $185 million settlement with Wells Fargo for the systematic creation of more than two million unauthorized deposit and credit card accounts. The CFPB assesses a $100 …
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The Los Angeles Times investigates Wells Fargo’s aggressive sales practices, revealing systematic pressures on employees to create unauthorized accounts. The investigation exposes a corporate culture that incentivized fraud, with employees opening fake accounts to meet impossible sales quotas. …
Wells Fargo BoardJohn StumpfScott Reckard (LA Times Reporter)corporate-fraudbanking-regulationregulatory-capturewells-fargo
An enforcement branch chief in the SEC’s San Francisco office left the agency in May 2010 to become in-house counsel at Wells Fargo & Co. Less than two weeks after joining Wells Fargo, she filed six disclosure statements indicating she would be representing the bank in connection with …
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