On Thursday January 23rd, 2020 the Office of the Comptroller of the Currency, American banking’s number one federal regulatory agency, slapped former Wells Fargo Bank’s Chief Executive Officer John G. Stumpf with a substantial $17,500,000.00 fine the largest fine ever imposed upon one individual by that federal regulatory agency. John G. Stumpf was also banned for life from ever again working in the banking industry in any capacity. Other former Wells Fargo Bank executives were also fined but none as severely as John G. Stumpf. I consider this to be great news with the only downside being that it seems to have taken far too long.
In 2015 I wrote and published the book “Hell’s Bank”. In that book I revealed that since taking office as Chief Executive Officer in 2007 Wells Fargo Bank was caught up in an ever expanding web of deceit, misrepresentations, securities law violations and even a pattern of racist conduct that was still going on as I wrote the book. In my research I learned that Wells Fargo Bank under the leadership of John G. Stumof had settled claims in excess of $38 billion dollars all while paying John G. Stumpf a staggering $160 million including stock options and other forms of compensation. Based on my extensive research, I determined and suggested that the time had come for Wells Fargo Bank to dump Stumpf, About one year later they finally did dump Stumpf, Now, roughly five years later, the Office of the Comptroller of the Currency seriously dumped Stumpf. But then again – really?
Under John G. Stumpf’s horrid leadership hundreds of thousands if not millions of Americans were damaged by the misguided actions of Wells Fargo Bank under John G. Stunpf. Racism ran wild under John G. Stumpf causing many African American customers to pay significantly higher interest rates than the Caucasion customers even when they had the same credit scores and income parameters. Under the failed leadership of then CEO John G. Stumpf, Wells Fargo Bank had to pay in excess of $38 billion dollars in fines and penalties, all while then CEO John G. Stumpf was receiving millions of dollars in compensation.
Another dreadful part of the management style of John G. Stumpf was the practice of telling subordinate employees that they had only two choices. They could either do as instructed even when they knew their actions which among other things included opening unrequested and unneeded accounts for many Wells Fargo Bank customers or they could and would get fired.
Such was the management style of former CEO John G. Stunpf.
As all of this was going on John G. Stumpf was paid in excess of $160 million dollars so given that is a $17.5 million fine truly adequate? Does if even come close to true justice? I don’t think so. But if this interests you then you may want to read my book “Hells Bank.” It is only a mere 130 pages but each one is packed unbelievable tales of fraud and corruption under the horrid leadership of former CEO John G. Stumpf. You can order here: http://www.lulu.com/shop/ron-irwin/hells-bank/paperback/product-22302956.html . It is less than $12.00 and it will mesmerize you. But I am not saying that all banks and bankers are evil people. John G. Stumpf simply took it to a whole new level and in so doing he indeed did cause damage to hundreds of thousands of Wells Fargo Bank customers during his tenure of about nine years. Happily there are very few tales from American banking as horrific as the one created by John G. Stumpf and looking at the whole picture is absolutely captivating.