The embattled Wells Fargo community banking head is going to forego the teary farewell at this year’s Christmas party. Oh yeah, and also $19 million. To start.
The bank said that independent directors, working with law firm Shearman & Sterling LLP, will investigate the retail banking sales practices of the bank. The bank also said that the company's head of community banking, Carrie Tolstedt, had left the company and would not receive any severance nor $19 million in unvested equity awards…. "These initial actions will not preclude additional steps being taken with respect to Mr. Stumpf, Ms. Tolstedt or other executives as a consequence of the information developed in the investigation," the company's announcement said.
Also making an early exit? Tolstedt’s life’s work.
Wells Fargo & Co. plans to eliminate sales goals for employees of its retail banking business on Oct. 1, three months earlier than originally planned, Chief Executive John Stumpf is planning to say in congressional testimony Thursday.
The move is an attempt to address criticism over the bank’s high-pressure sales culture following a $185 million enforcement action.
Yea, good luck with that:
Wells on Tuesday agreed to pay a $400,000 penalty after the CFTC found “inaccurate [large-trader reports]” that had “both missing data and data presented in a format inconsistent with CFTC requirements.”
Wells Fargo executive departs as probe into scandal launches [MarketWatch]
Wells Fargo to Eliminate Retail Business Sales Goals on Oct. 1 [WSJ]
Wells Fargo Joins Roster of Banks Dinged for Swaps Trading [WSJ]