Page 37 - Wells Fargo Bank (C) Case Study
P. 37
The Fine
the House Financial Services Committee, lawmakers who
interrogated Stumpf were typified in their condemnation by
Representative Michael E. Capuano, Democrat of
Massachusetts question to Stumpf:
“How long does this stuff have to go on before you
get outraged and take action?”
Capuano noted that the $185 million fine against Wells
Fargo, which had $1.9 trillion in assets, “is barely a footnote
in their annual report.”
Stumpf forfeiting $41 million in pay represented one of the
first times since the 2008 financial crisis that a chief
executive had been forced to give up compensation. WFB
later clawed back an additional $75 million from Stumpf and
fellow director.
In the weeks following the Senate and House hearings
further fines for WFB began to emerge:
Wells Fargo agreed to pay $50 million to settle a
class action lawsuit alleging that the bank
overcharged hundreds of thousands of
homeowners for appraisals ordered after they
defaulted on mortgage loans.
In April 2017 Wells Fargo was ordered to provide
$5.4 million in back pay, damages and legal fees to
a bank manager who had been terminated in 2010
after reporting suspected fraudulent behavior to
superiors and a bank ethics hotline.
