- US SEC charges Wells Fargo CEO for misdirecting its customers.
- The CEO of Fargo, an American banking giant, John Stumpf, was criminalized by the US Securities and Exchange Commission.
- Mr. Stumpf had to cough up almost three million dollars to appease the regulator while a former lead exec, Carrie Tolstedt, will be involved in a lawsuit in court.
US SEC charges Wells Fargo CEO
US SEC charges Wells Fargo CEO for misdirecting its customers. The CEO of Wells Fargo, an American banking giant, John Stumpf, was criminalized by the US Securities and Exchange Commission.
Mr. Stumpf had to cough up almost three million dollars to appease the regulator while a former lead exec, Carrie Tolstedt, will be involved in a lawsuit in court. Mr.Stumpf was the brains behind the scandal named one of the biggest in a decade.
By late 2016, it was clear that Fargo, no.4 in no. of total assets being monitored, was creating a multitude of fraudulent accounts without clients’ approval. The bank has a history of illegal activity that spans over 15 years.
An example of the legal activity performed by the bank was that they forged customers’ signatures. Wells Fargo went as far as to force its workers to adhere to harsh quotas.
The company also received a three billion dollar fine from the US Department of Justice (DOJ) and attempted to cover it. The former CEO was first penalized in January by the US Government.
The US Government banned Mr.Stumpf from ever practicing in banking again.
Wells Fargo and Bitcoin
Wells Fargo is notoriously known for not liking Bitcoin since July 2019 when it barred customers from buying crypto.
Later in the year 2019, the organization declared it had established its international digital asset. Wells Fargo’s decision to block crypto was mostly a strategic one, as the company is now known as a great innovator in regards to digital assets.
