World’s largest bank fires 5300 for fraud. Exec in charge walks away with R1.7bn

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

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.

Read More
Downgrade to ‘junk’ ruins Sanral plans to borrow more

Downgrade to ‘junk’ ruins Sanral plans to borrow more

The Money Show’s Bruce Whitfield interviews Sanral Chief Financial Officer Inge Mulder.

How to figure out who your ideal customer is (the one you can profitably serve)

How to figure out who your ideal customer is (the one you can profitably serve)

Small businesses have limited resources. You have to focus your efforts, says Aurik Business Accelerator’s Pavlo Phitidis.

'Gigaba will have limited effect; the elephant in the room is the President'

'Gigaba will have limited effect; the elephant in the room is the President'

The Money Show’s Bruce Whitfield interviews Standard Bank Chief Economist Goolam Ballim.

5 year-olds may never get a car licence

5 year-olds may never get a car licence

Cars might not only be autonomous by 2030, new drivers will probably not be allowed to drive.

Looking for a dev job? Need a developer? OfferZen brings you together!

Looking for a dev job? Need a developer? OfferZen brings you together!

The Money Show’s Bruce Whitfield interviews OfferZen cofounder Malan Joubert.

5 reasons why asset manager Citadel is not using the word ‘junk’

5 reasons why asset manager Citadel is not using the word ‘junk’

The Money Show’s Bruce Whitfield interviews Citadel Chief Investment Officer George Herman.

Popular articles
'Land restitution failed because Government is the biggest owner of land'

'Land restitution failed because Government is the biggest owner of land'

Bruce Whitfield interviews Finance Minister Malusi Gigaba's advisor Chris Malikane and Business Leadership SA's Bonang Mohale.

Winter blues got you down? What you must know about Seasonal Affective Disorder

Winter blues got you down? What you must know about Seasonal Affective Disorder

Don't brush off that yearly feeling or a seasonal funk. Here's how to help keep your mood and motivation up throughout the year.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

ANC MP Makhosi Khoza writes about "leadership injudiciousness" in the party

ANC MP Makhosi Khoza writes about "leadership injudiciousness" in the party

Concerned ANC MP Dr Makhosi Khoza writes a heart felt Facebook post detailing immoral leadership and personal challenges.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

NSFAS to reopen 2017 applications

NSFAS to reopen 2017 applications

National Student Financial Aid Scheme says it will reopen 2017 loan applications after receiving requests for deadline extension.

'Collect experiences, NOT possessions!' - Paul Theron (Vestact MD)

'Collect experiences, NOT possessions!' - Paul Theron (Vestact MD)

Bruce Whitfield interviews the razor-sharp tongued Vestact MD Paul Theron about his money hopes, fears, successes, failures, etc.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 reasons why the tourism industry is sceptical about the latest numbers

5 reasons why the tourism industry is sceptical about the latest numbers

The tourism industry is questioning the veracity of the surprisingly upbeat tourism figures and the timing of their release.