Wells Fargo is facing more pressure to make changes at the top, with a group that advocates for labor union pension funds calling for two new board directors and taking back compensation from the executive that ran its community banking unit. It joins USA lawmakers and other labor activists demanding senior-level accountability after the San Francisco-based bank opened accounts without customers’ authorization.
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A Wells Fargo shareholder from the Peninsula sued 17 directors and officers of the bank in San Francisco Superior Court Thursday, seeking a clawback of improper profits they allegedly gained for allowing the creation of up to 2 million phony accounts. Mr. Stumpf has been under enormous pressure due to the scandal, and he is not able to provide concrete answers to the investors and the senate members.
Wells Fargo was fined $US185 million ($A242 million) by USA and California regulators earlier this month. “The senior executives who are ultimately responsible – and who benefited financially – appear to be walking away unscathed”. The bank fired 5,300 employees over a five-year period and earlier this month entered into an enforcement action and paid a $185 million settlement to two regulatory agencies and the Los Angeles City Attorney’s Office.
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Mr. Stumpf said at the Tuesday hearing that the board committee had already met on the matter. “Move your accounts over where you can actually trust your banker”, she said. It also was among groups that successfully sought the removal of Moynihan predecessor Kenneth Lewis in 2009 over his handling of the Merrill Lynch acquisition during the financial crisis.
