Wells Fargo Claws Back Millions in Compensation

By City News Service

LOS ANGELES  – Los Angeles City Attorney Mike Feuer said Monday the Wells Fargo board’s decision to claw back $75 million in compensation from two ex-executives it blames for much of the company’s sales scandal is a “positive step,” but falls short.

Feuer’s office last year settled a lawsuit it brought against the bank after some of its employees created more than two million unauthorized accounts as a way to meet aggressive sales goals set by management.

The settlement resulted in $50 million in civil penalties for the city of Los Angeles and $135 million for two federal agencies, and Wells Fargo was ordered to provide restitution to affected customers.

“From the moment we sued Wells Fargo over fake accounts through the time we resolved the case, the bank seemed determined to blame and fire low-level employees, rather than take responsibility at the top,” Feuer said in a prepared statement.

“While clawing back outrageous bonuses from people in charge when the scandal erupted is a positive step, providing full restitution to affected customers is imperative,” he said. “Pursuant to our settlement, next month Wells will report to me on its progress toward doing just that. My office and
our federal partners will continue to watch closely and take any further action necessary to hold Wells or other big banks accountable.”

Wells Fargo is seeking a total of $75 million from former chief executive John G. Stumpf and its former head of community banking, Carrie L. Tolstedt.

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April 12, 2017  Copyright © 2012 Eastern Group Publications, Inc.

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