Wells Fargo & Company – the world’s largest bank by market capitalisation – has been fined R2.6 billion ($185 million) for creating over 1.5 million checking and savings accounts and 500 000 credit cards that its customers never authorised.
The scandal was due to an incentive-compensation program for employees to create new accounts.
The bank has since fired nearly 5300 employees while setting aside R71 million ($5 million) for customer refunds of fees for accounts the customers never wanted.
Well Fargo made a profit of R286 billion ($20 billion) in 2015.
Carrie Tolstedt, who headed the department in question, will retire at the end of 2016 and receive more than R1.7 billion ($124.6 million) in stock, options and restricted Wells Fargo shares.
The Money Show’s Bruce Whitfield interviewed Vestact MD Paul Theron.
Scroll down for quotes from the audio below.
I’m a Wells Fargo shareholder and account holder.— Paul Theron, Vestact MD
Wells Fargo is not as problematic as some of the others.— Paul Theron, Vestact MD
I wonder if this sort of thing is going on in South Africa.— Paul Theron, Vestact MD
State-run newspaper The Herald carried 26 pages of full-colour advertisements congratulating him.
That’s 6000 per minute… 360 000 per hour… 8.64 million per day… You get the idea. Shoprite is rocking!
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