Wells Fargo CEO says bad employees were behind scandal over unsolicited accounts

By Emily Glazer

CEO John Stumpf says: ‘ There was no incentive to do bad things’

 John Stumpf, chief executive of Wells Fargo & Co., began to speak publicly Tuesday for the first time since the bank was slapped with a $185 million fine last week over its sales practices, defending the firm and the work he said it had already been doing to weed out bad behavior.

But Stumpf, in an interview with The Wall Street Journal, wouldn’t comment on who was ultimately responsible for the practices and sales-driven culture that led employees to open as many as two million accounts without customers’ knowledge.Stumpf said that at the bank, “There was no incentive to do bad things.”

Rather, Stumpf appeared to lay blame for the problems with the employees involved than with any flaw in Wells Fargo’s (WFC) ystems or culture. He said that some employees won’t “honor” the bank’s culture and that the bank had changed its sales goals to put in more discipline and to take “more risk off the table.”

“I wish it would be zero but if they’re not going to do the thing that we ask them to do — put customers first, honor our vision and values — I don’t want them here,” he said. “I really don’t.”

An expanded version of this article appears at WSJ.com (http://www.wsj.com/articles/wells-fargo-ceo-defends-bank-culture-lays-blame-with-bad-employees-1473784452?mod=mktw).

6 Responses

  1. Bad employees good management or perverse sales incentives with fails leading to termination. Seems management takes all the credit for the income produced but none for the methods employed.

  2. Wells Fargo has a history of setting unattainable goals that end up in the employee doing these types of actions to keep their jobs. In my affidavit utilized by DOJ in its reverse redlining settlement with Wells Fargo, I stated that WF’s policy was to require loan officers to close at least 3 subprime loans each month. If you went 1 quarter without meeting the goals, you were fired. That set up loan officers to put borrowers in subprime loans when they were otherwise qualified for prime loans. Wells Fargo also set a goal that the subprime loans would pay for the fixed costs of the company. Manager’s bonuses were tied to subprime volume. So once again, its Wells Fargo’s interest (its greed) not the customers that comes first. Stumpf is a liar. Upper management has been doing this at least since 2000.

  3. As usual passing the blame on someone else, just like they did to the borrowers

  4. I heard that they had some connections with law firms in India. Stop outsourcing and give American people jobs.

  5. Reblogged this on Matthews' Blog.

  6. Liar!

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