World’s largest bank fires 5300 for fraud. Exec in charge walks away with R1.7bn

Wells Fargo & Company – the world’s largest bank by market capitalisation – has been fined R2.6 billion ($185 million) for creating over 1.5 million checking and savings accounts and 500 000 credit cards that its customers never authorised.

The scandal was due to an incentive-compensation program for employees to create new accounts.

The bank has since fired nearly 5300 employees while setting aside R71 million ($5 million) for customer refunds of fees for accounts the customers never wanted.

Well Fargo made a profit of R286 billion ($20 billion) in 2015.

Carrie Tolstedt, who headed the department in question, will retire at the end of 2016 and receive more than R1.7 billion ($124.6 million) in stock, options and restricted Wells Fargo shares.

The Money Show’s Bruce Whitfield interviewed Vestact MD Paul Theron.

Scroll down for quotes from the audio below.

I’m a Wells Fargo shareholder and account holder.

Paul Theron, Vestact MD

Wells Fargo is not as problematic as some of the others.

Paul Theron, Vestact MD

I wonder if this sort of thing is going on in South Africa.

Paul Theron, Vestact MD

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.


This article first appeared on 702 : World’s largest bank fires 5300 for fraud. Exec in charge walks away with R1.7bn


Recommended

by NEWSROOM AI
Read More
Venezuela inflation rate expected to top 1 000 000% by year-end

Venezuela inflation rate expected to top 1 000 000% by year-end

Venezuela – once as rich as Norway – is suffering an apocalyptic collapse without precedent.

What is a hedge fund?

What is a hedge fund?

The Money Show’s Bruce Whitfield interviews Fairtree Capital Portfolio Manager Jean-Pierre Verster.

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

The Money Show’s Bruce Whitfield interviews Truworths CEO, Michael Mark.

We have made progress in delivering on our promises to Marikana – Lonmin CEO

We have made progress in delivering on our promises to Marikana – Lonmin CEO

The Money Show’s Bruce Whitfield interviews Lonmin CEO Ben Magara.

4 tips for safely investing right now when everything is so hectic

4 tips for safely investing right now when everything is so hectic

Bruce Whitfield asks Personal Financial Advisor Warren Ingram for advice on how investors can safely navigate this hectic time.

Transnet CEO Siyabonga Gama served with suspension notice

Transnet CEO Siyabonga Gama served with suspension notice

The Money Show’s Bruce Whitfield interviews Pieter du Toit, the assistant editor at News24.

Popular articles
[LISTEN] White callers debate privilege and response to apartheid

[LISTEN] White callers debate privilege and response to apartheid

Two white callers, Matt and Stephanie, disagreed on how white people should respond to apartheid as Eusebius McKaiser facilitated.

More than 30% of students go hungry

More than 30% of students go hungry

Dr Stephen Devereux says a large number of black students are more vulnerable than their white counterparts.

Water Warriors need help getting water to needy towns across SA

Water Warriors need help getting water to needy towns across SA

South African Water Warriors still delivers water in places that are experiencing severe drought and they need water donations.

[WATCH] Safari that could have gone horribly wrong as buffalo charges vehicle

[WATCH] Safari that could have gone horribly wrong as buffalo charges vehicle

Khabazela shares some tweets, Facebook posts and videos that have gone viral.

'There is no way Magnus Malan could've done the things he is accused of'

'There is no way Magnus Malan could've done the things he is accused of'

Former police minister Adriaan Vlok has rejected accusations that former minister Malan was at the centre of a paedophile ring.