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Four senior managers fired in Wells Fargo sales scandal

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Four senior managers at Wells Fargo’s community banking division have lost their jobs. The four were fired as a result of the sales scandal that came to light last year and cost 5,300 employees their jobs.

The fired employees are the head of the company’s consumer credit-card business and three other senior managers. These are the most senior people that have been fired in relation to the fraud scheme.

“None of these executives will receive a bonus for 2016 and they will forfeit all of their unvested equity awards and vested outstanding options,” the company states in a press release.

Earlier reports revealed the board is also considering holding back bonuses for 2016 for both the CEO and CFO of the company. Last year, CEO John Stumpf categorically denied that the fraudulent activities were condoned or spurred on by the bank’s management and working culture.

Between 2011 and 2015, Wells Fargo fired 5,300 employees who were part of an enormous fraud scheme at the American bank.

Under pressure from unrealistic sales targets, staff secretly opened fake bank accounts, made up debit card PINs, and created dummy email addresses. All without customers’ knowledge or consent.

The news came to light as the bank was fined US$100 million by the Consumer Financial Protection Bureau (CFPB) in September 2016. By creating accounts and signing consumers up to financial products without their authorisation, Wells Fargo employees were able to collect an estimated $2.5 million in bogus fees and charges from their customers.

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Photo / iStock

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