Friday April 20, 2018
After paying a $185 M fine, Wells Fargo now faces a billion dollar fine.
Well okay, but so what. Former CEO Stumpf and Head of Community Banking Carrie Tolstedt were denied about $75 M in bonuses.But they still rode into the San Francisco sunset as multi millionaires many times over.
So a bank with over a trillion in assets pays a billion dollar fine, that is one thousandth of the assets. The only people who really lost their jobs were the ones fired for not
defrauding the customers, and most of them made less than 60K.
This seems to send the message that if you can stand the cost of fraud, a billion dollars in this case, hey, so what?
Is this justice? Or should the bank be sold off to other smaller banks?
Once again if an entity can pay a hefty fine, it seems to pass the Too Big to Fail Test.
Professor Elam 
Leave a comment