Wells Fargo Fake-Accounts Scandal

 

By Eve Tahmincioglu

"Wells Fargo board gets black eye in shareholder vote,” was the glaring headline from Reuters following the financial giant’s annual meeting earlier this year.

The contentious meeting included an investor shouting at directors about whether they were complicit in the fraud or just incompetent, and a largely anemic shareholder vote of support for the 15-member board.

“Wells Fargo stockholders today have sent the entire board a clear message of dissatisfaction,” said Stephen Sanger, Wells Fargo’s board chairman in a statement after the vote. “Let me assure you that the board has heard that message, and we recognize there is still a great deal of work to do to rebuild the trust of stockholders, customers and employees.”

The Wells Fargo scandal, which including thousands of employees creating fake customer bank accounts, led to a $142 million government settlement, congressional hearings and the ouster of the firm’s CEO and chairman, John Stumpf.


Issue: 
2017 Annual Report

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