100%(3)3 out of 3 people found this document helpful
This preview shows page 2 - 4 out of 4 pages.
small does not set off any flags.AftermathThe CEO of the Wells Fargo, John Stumpf, appeared before the Senate Banking Committee on September 21st, 2016. This was after the company had already been fined a total of $185 million. $100 million went to the Consumer Financial Protection Bureau, $50 million went to the Los Angeles City Attorney, and $35 million went to the Office of the Comptroller of the Currency. The Senate Banking Committee did not levy further fines, but did recommend thatStumpf resign. (Wikipedia, 2017)John Stumpf did resign a month after the hearing. He was replaced by COO Timothy Sloan. In April 2017, the board activated a clawback provision in Stumpf’s contract to take back$28 million from his earnings. 5,300 employees were fired for their role in the account fraud. InMarch 2017, Wells Fargo spent a total of $110 million compensating the victims of the account fraud. (Wikipedia, 2017)
EXPENSE & ASSET ANALYSIS3As a result of the account fraud, both the State of California and the City of Chicago suspended all activity with Wells Fargo. California’s suspension was placed in September 2016 for one year. Chicago’s suspension was also placed in September 2016, but for two years. Several other cities have switched from Wells Fargo to a different bank for their operations as well. (Wikipedia, 2017) Wells Fargo stock lost 12 percent during September and October of 2016, but has rebounded since then. (Whitehouse, 2017)
EXPENSE & ASSET ANALYSIS4ReferencesWells Fargo. (2016). Wells Fargo & Company annual report 2015. Retrieved from -reports/2015-annual-report.pdfWhitehouse, T. (2017, November). What happened inside Wells Fargo? Retrieved from ?vid=0&sid=00808c9c-f0a5-4c1e-a494-aa362d938c95%40sessionmgr101Wikipedia. (2017, October 4). Wells Fargo. Retrieved November 19, 2017, from