On Monday Wells Fargo finally aired all the dirty laundry from its seemingly endless sales scandal, detailing in a lengthy report the governance failures and management lapses that led to thousands of firings and millions of sham accounts in its community banking division over the past 15 years.With the report's publication, the board yanked even more pay from former executives John Stumpf and Carrie Tolstedt; the latter was retroactively fired.
Wells Fargo would like you to believe this is the final chapter in the phony account saga. But there's one thing the board has fully acknowledged or made right.
Shelley Freeman was a regional president in the troubled Los Angeles region and later in Florida. The report describes her as “an aggressive sales manager who created significant sales pressure.” She told subordinates to “encourage customers to sign up for products regardless of need.” She was also responsible for this:
Freeman was particularly aggressive in her Jump into January campaigns; witnesses described the practice of “running the gauntlet,” in which district managers dressed up in themed costumes, formed a gauntlet and had each manager run down the line to a whiteboard and report the number of sales they achieved.
Forget the fake account openings, the firings, all of it. This is where the real scandal is. This is what we should all be talking about. This demands answers. Elizabeth Warren, are you listening?