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.

Read More
How to create more time (and how to spend it wisely)

How to create more time (and how to spend it wisely)

Make no mistake; strategizing to grow your business takes time. Yet, few business owners seem to have enough of it.

Some investments are more attractive after Budget 2017 (some not so much)

Some investments are more attractive after Budget 2017 (some not so much)

Personal Financial Advisor Warren Ingram gives advice on where to put your money; considering changes brought by Budget 2017.

Cricket SA guns for international superstars to play in new #T20 Global League

Cricket SA guns for international superstars to play in new #T20 Global League

Best. News. EVER! South Africa is getting its own global T20 league. Bruce Whitfield interviews Cricket SA CEO Haroon Lorgat.

Budget 2017 and tax: The good (there is some), the bad and the ugly

Budget 2017 and tax: The good (there is some), the bad and the ugly

The Money Show’s Bruce Whitfield interviews TaxTim cofounder Marc Sevitz.

Meet Zibusiso Mkhwanazi; CEO of “Digital at the core marketing agency” AVATAR

Meet Zibusiso Mkhwanazi; CEO of “Digital at the core marketing agency” AVATAR

Mkhwanazi – son of an entrepreneur – founded a web design firm (Csonke.com) with R2000 when he was 17 and still in school.

5 most important ways Budget 2017 will tighten your belt for you

5 most important ways Budget 2017 will tighten your belt for you

The Money Show's Bruce Whitfield interviews Personal Finance Journalist Maya Fischer-French.

Popular articles
Police shoot at crowd of immigrants with rubber bullets (arrests 136 people)

Police shoot at crowd of immigrants with rubber bullets (arrests 136 people)

"As we speak there’s another standoff in Sunnyside, " says EWN's Barry Bateman.

Letters show Moyane refuses to account to Gordhan, turns to Zuma to intervene

Letters show Moyane refuses to account to Gordhan, turns to Zuma to intervene

M&G reports that Sars Commissioner Tom Moyane declared an intergovernmental dispute against Finance Minister Pravin Gordhan.

How Airbnb has made renting in Cape Town even more pricey

How Airbnb has made renting in Cape Town even more pricey

Property management company PayProp argues that Airbnb has driven down rental availability and driven up rental prices in the CBD.

Orange River water for Cape Town not an option - Water Affairs #WaterWatch

Orange River water for Cape Town not an option - Water Affairs #WaterWatch

At R2 million per km, pumping water from the Orange River over 600 km to Cape Town is prohibitively expensive.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.