“You should resign, you should give back the money, and you should be criminally investigated.” a fiery Senator Elizabeth Warren told Wells Fargo’s chief executive, John G. Stumpf, during Senate hearings last month.
In September, Wells Fargo reached a $185 million settlement with federal regulators and acknowledged that thousands of employees, under intense pressure to meet aggressive sales targets, opened as many as two million bogus accounts without customers’ knowledge, in some cases forging signatures. John G. Stumpf, the bank’s former chief executive, declared that the actions were an ethical lapse involving 5,300 low-ranking workers, who have since been fired.
The resulting scandal forced Chairman and CEO John Stumpf to resign on Thursday, “effective immediately“… “I have decided it is best for the company that I step aside,” he said in a statement. The bank’s board said it would claw back compensation from himvalued at $41 million. Overall, when you consider that Wells Fargo is the nation’s second-largest bank, the financial punishment it paid out is basically what amounts to chump change.