Monday, April 10, 2017

Executive Forfeitures at Wells Fargo

The Wells Fargo scandal has turned into one of the largest “claw back” cases ever, as the bank will recover another $73 million in bonuses and salary paid to executives held responsible for misconduct in the ghost account scandal during the years when the compensation was paid. The scale of the forfeiture is not excessive. The executives will still be wealthier than most of us can dream of. Their scheme resulted in the bank exaggerating its operating success for many years. It is too soon to say whether the bank will ultimately survive the scandal, in which employees were directed to open fake accounts on behalf of millions of customers.