Wells Fargo, the world’s second-largest bank has been destroyed in the public over news that its employees fraudulently created over 2 million fake bank and credit card accounts without the knowledge or consent of its customers in order to inflate sales figures and qualify for bonuses. The bank paid $185 million in fines and penalties and fired 5,300 employees involved in the scandal.The bank’s shares have fallen more than 7.5% and are inching into bear market territory.
Meanwhile, the Wells Fargo executive in charge during this scandal: Carrie Tolstedt- Chief of Community Banking, has made a fortune. Last year Tolstedt collected $9 million in total pay, and despite the shocking scandal at her division, Tolstedt is set to walk away with an even bigger fortune when she retires at the end of the year — a $124 million payday through a mix of shares, options and restricted stock.
U.S. Senator Elizabeth Warren of Massachusetts spoke to CNBC today about the problem with Wells Fargo and the even bigger structural problems on Wall Street.
Watch what she had to say below.
Dow Jones Industrial Average: 18,212.48 (+177.71 / +0.99%)
NASDAQ: 5,249.69 (+75.92 / +1.47%)
S&P 500: 2,147.26 (+21.49/ +1.01%)