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 THE NEWSROOM
Read More
Economic researcher slams anti-poor VAT hike

Economic researcher slams anti-poor VAT hike

The Money Show’s Bruce Whitfield interviews Wits economic researcher Gilad Isaacs.

Anglo American profits soar. Pays highest dividend in a decade

Anglo American profits soar. Pays highest dividend in a decade

The Money Show’s Bruce Whitfield interviews Anglo American CEO Mark Cutifani.

Woolworths, pummelled in Australia, loses R4.86 billion

Woolworths, pummelled in Australia, loses R4.86 billion

The Money Show’s Bruce Whitfield interviews Woolworths CEO Ian Moir.

How to capitalise on an environment that has suddenly turned for the better

How to capitalise on an environment that has suddenly turned for the better

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator’s Pavlo Phitidis.

How to plan financially, considering you’re poorer after Gigaba's hectic Budget

How to plan financially, considering you’re poorer after Gigaba's hectic Budget

The Money Show’s Bruce Whitfield interviews Galileo Capital Financial Advisor Warren Ingram.

'Budget is excellent under the circumstances. I give it 9 out of 10'

'Budget is excellent under the circumstances. I give it 9 out of 10'

The Money Show’s Bruce Whitfield interviews Investec Asset Management Economist Nazmeera Moola.

Popular articles
[LISTEN] DA objects to Gigaba delivering #Budget2018 speech after court order

[LISTEN] DA objects to Gigaba delivering #Budget2018 speech after court order

Members of Parliament object to Finance Minister Malusi Gigaba delivering budget 2018.

Saps: Attackers spared 5 female cops in Ngcobo police shooting

Saps: Attackers spared 5 female cops in Ngcobo police shooting

E Cape Saps says they are investigating the murder of five police officers and one retired soldier at Ngcobo Police Station.

Missing Cape Town couple's vehicle found north of Durban

Missing Cape Town couple's vehicle found north of Durban

Hawks spokesperson says the couple has not yet been located and their names will not be released as yet.