Headline of the day: A bankster’s clawback

Following in the wake of Elizabeth Warren’s devastating examination of Wells Fargo CEO charging him with one of the biggest scams in modern banking history, Wells Fargo CEO John Stumpf is giving back some chump change from the more than $200 million he pocketed from the scam.

From the London Daily Mail:

Wells Fargo CEO gives up $41m of his own stock options as the crisis hit bank launches investigation into crooked accounts scandal that has seen them hit with $7.2 BILLION lawsuit

  • John Stumpf, the executive who was grilled on Capitol Hill last week, will have his salary frozen during company probe
  • Wells Fargo has fired some 5,300 employees for opening as many as 2 million accounts in customers’ names without their authorization
  • Board of directors announced that Carrie Tolstedt, the executive who headed the division responsible for the fake accounts, was forced to quit
  • Tolstedt was expected to retire and take home a large severance package, but the company said that there would be no such payout 
  • On September 8, a federal regulator and Los Angeles prosecutor announced a $185 million settlement with Wells
  • Now six ex-staff members have filed a lawsuit seeking at least $7.2bn in damages
  • Suit claims Wells Fargo set unrealistic sales quotas and fired employees unwilling to set up fraudulent accounts
  • Accuses bank of wrongful termination, unlawful business practices and failure to pay wages, overtime, and penalties under California law

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