Wells Fargo is opening an independent investigation into the company's retail banking practices, following the revelation that employees trying to meet sales targets opened as many as 2 million phony accounts for customers without their knowledge, the firm announced Tuesday.
During the investigation, Wells Fargo CEO John Stumpf will not receive a salary and will forfeit equity awards valued at around $41 million. Carrie Tolstedt, the former head of retail banking, has also left Wells Fargo, and will not receive a severance package. The firm says it has fired 5,300 people, mostly low-level employees, in connection with the fraudulent practices, and has paid a $190 million fine. It also will eliminate sales goals in retail banking on Jan. 1, 2017.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Flying into dangerFeature America's air traffic control system is in crisis. Can it be fixed?
-
Pocket change: The demise of the pennyFeature The penny is being phased out as the Treasury plans to halt production by 2026
-
Time's up: The Democratic gerontocracyFeature The Democratic party is losing key seats as they refuse to retire aging leaders
-
Crypto firm Coinbase hacked, faces SEC scrutinySpeed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress codespeed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirementspeed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff displaySpeed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loomSpeed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pausesSpeed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
