I’ve been avoiding blogging during the election cycle to stay away from turning my blog into another pile of steaming bile.
The more I learn about Strumpf(any coincidence to John Olivers #makdonalddrumpfagain purely coincidental), the former CEO of Wells Fargo, the more he becomes the poster boy for everything wrong with the “too big to fail” banks.
The head of any organization sets the strategy, and the tone of the implementation of the organizations strategy. Bad ones do only one, or neither. Strumpf seems to be in the later category based on his testimonial to a House panel on the recent Wells Fargo creation of unwanted accounts, charges etc. When a major corporation has to fire over 5,000 lower level employees, the is no way the CEO wasn’t responsible for the culture that allowed this to happen.
As if that wasn’t bad enough, this morning I read Kathy Kristofs article about Strumpfs stock sale, prior to announcement of the settlement over the illegal activities. While reading this it’s worth making a mental note of the numbers and sheer scale. Remember that ordinary bank customers were charged around $2.4-million in charges related accounts they hadn’t asked for. Apart from this at least having the appearance of insider dealing/trading it reveals the absurd and clearly unjustified amounts of money in the system.
Stumpf sold nearly 3 million Wells Fargo shares in 2016, which is almost 10 times the 351,991 shares he sold the previous year, according to SEC filings. His profit on the 2016 sales amounted to $65.4 million.
Strumpf must be investigated for this, and an example made of him. Otherwise, the country and it’s leaders are sending the same message to the financial industry titans, as they would be sending to their organizations, bending and breaking the rules is OK.
For more on Strumpf, Nomi Prins has a list of his “crimes” and failings while CEO.