Page 64 - Flip Banks TG

Introduction

During the financial crisis, Wells Fargo was not a major

player in the creation toxic and complex mortgage

securities. It emerged from the crisis with a relatively good
reputation. But one, which obscured its aggressive

foreclosure activities.

The bank was led by John Stumpf during this period first as

president from 2005 and in 2007 as CEO. In 2010 he added

chairman to his duties as CEO.

The Wells Fargo cross-selling scandal demonstrates the

importance of financial incentives not just at the senior

management level but at all levels of an organization.

Wells Fargo said its top executives learned in 2013 that

some employees were systematically creating illegal

accounts to meet sales goals. But former employees who

tried to blow the whistle on the fraudulent activity years

earlier tell a different story.

For decades, courts have been

largely pro-bank when hearing

foreclosure cases came before

them, they tended to accept what

the financial institutions produced

in documentation and amounts
owed by borrowers.