Wednesday, October 12, 2016

Scandal of fake accounts: Wells Fargo CEO – Handelsblatt

John Stumpf

The Chairman and CEO of Wells Fargo, seen here at a hearing of the Senate Banking, Housing and Urban Affairs Committee, resigned on Wednesday with immediate effect.

(photo: Reuters)

resigned, The chief Executive of US Bank Wells Fargo is with immediate effect. In the place of John Stump of the operational managing Director Tim Sloan, a step the company said on Wednesday. In September, the Executive Board of the because of the controversial sales practices in the headlines stricken Bank, the Stump was removed a stock bonus of $ 41 million (EUR 37 million).

Stump had to previously answer in a hearing before a Senate Committee, in the course of which his resignation and a criminal investigation were called for. Wells-Fargo-employee had opened without the permission of the customers millions of Bank accounts and Online Banking activities feigned, in order to achieve the of the company’s management set sales goals. As this became known, fired the Bank of approximately 5300 employees. She agreed, in the meantime, the payment of 185 million dollars as compensation.

How often, in such cases, was associated with the criminal payment a Deal that the Bank did not make any admission of guilt. The Board of Directors believed, therefore, to be able to back to business move. But this Time, did not want to put the outrage on the political side. Several States have ended their business relationships with the Bank or with a freeze you temporarily. The stump itself was always stronger in the criticism, because to him, the business policy was blamed for the misconduct of employees almost out I called. The officers of the division at the Board level was not released, but the 63-Year-old controlled, sent into retirement, which was a two-digit million amount in bonuses to keep. Also had to be taken care of after is known for a massive upset in policy and shareholders. The latter had to see a price fall of almost 50 dollars to last 45 dollars and lost about $ 20 billion in market capitalization after trading hours, the share price rose by around two per cent 46.25 dollars.

“I think it’s Best for the company, if I abdanke,” said Blunt in a Statement. During the Senate hearings, he had rejected the resignation demands and stresses that he will Remain and the implementation of the Transformation of the Bank was to take over a part of the “responsibility”. According to calculations by financial analysts to be quiet is likely to have had and still have, in spite of the cancelled bonuses is still in the order of magnitude of $ 130 million. The Details are not known. On Friday, the Bank will announce their Numbers to the course of the past quarter.


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