Page 37 - Wells Fargo Bank (C) Teaching Note

2011

Account activity will be reviewed back to this year, the bank announced on
Sept. 8, 2016. (Nearly two weeks later, it revised the date to 2009.)

2016

The bank said it would drop the aggressive sales goals that employees said
led to illegal accounts being created. It first said that it would end those goals
by Jan. 1, 2017, but subsequently changed the date to Oct. 1, 2016.

2016

September 8:

Fake account scandal breaks. Federal regulators reveal Wells Fargo
employees secretly created millions of unauthorized bank and credit card
accounts without their customers knowing it. The bank is hit with a $185
million fine. Wells Fargo says 5,300 employees were fired for related reasons.

September 14:

A government official tells CNN the Department of Justice has issued
subpoenas in a probe related to the fake account scandal.

September 27:

Wells Fargo CEO John Stumpf forfeits pay. Stumpf says he will give up much
of his 2016 salary, including a bonus and $41 million in stock awards. The
first major executive leaves the company over the scandal. Carrie Tolstedt,

who headed the division that created the fake accounts, steps down and
forfeits some pay.
September 28:

Wells Fargo is accused of illegally repossessing service members' cars. The
company agrees to pay $24 million to settle charges. The DOJ claims the
bank took 413 cars without a court order, which violates federal law. The
company apologizes and commits to refunds.

September 29:

Wells Fargo promises to abandon unrealistic sales goals. Wells Fargo
employees blamed their bosses for effectively encouraging fake accounts.
Before lawmakers on Capitol Hill, CEO John Stumpf is accused of running "a
criminal enterprise."