Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices

Stock MarketsNov 13, 2020 03:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Wells Fargo CEO Stumpf testifies before Senate Banking Committee hearing on firm's sales practices on Capitol Hill in Washington

By Pete Schroeder

WASHINGTON (Reuters) - The Securities and Exchange Commission charged former Wells Fargo (NYSE:WFC) CEO John Stumpf and retail banking head Carrie Tolstedt with misleading investors, the watchdog announced Friday.

The agency claimed that the former executives misled investors about the widespread sales practice problems at the bank. Stumpf agreed to pay a $2.5 million penalty to settle the charges, while the SEC will litigate fraud charges against Tolstedt in court.

A lawyer for Stumpf did not immediately respond to a request for comment. An attorney for Tolstedt said she was an "honest and conscientious executive," and the SEC charges are "unfair and unfounded."

The new charges mark the latest in a long-running set of legal and regulatory woes for the bank and its former leadership, after the firm was embroiled in a massive scandal over the creation of fake accounts by employees. In February, the bank agreed to pay $3 billion to settle a joint probe by the SEC and Justice Department.

Stumpf and Tolstedt have faced individual sanctions as well. Stumpf was barred from the banking industry and fined $17.5 million by a banking regulator in January, and Tolstedt is facing a $25 million fine which she is fighting in court.

In the latest charges, the SEC said the pair misled investors about the health of their sales practices, and they should have known about deep-seated issues within the bank.

SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Luis Reyes
Luis Reyes Nov 19, 2020 5:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wells Fargo and other banks still haven't fixed the toxic mortgages used to fool the investors.  COVID forbearances will be another disaster.  Will see if Biden and Harris again help Wall St get off free
Junk Man
Junk_Man Nov 15, 2020 10:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He should be in jail...
alex perez
alex perez Nov 13, 2020 3:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
White collar blue collar crimes should be judged the same..They deserve 14 years in Jail plus fines..
m mori
m mori Nov 13, 2020 11:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
he and she were decreped human beings. But they basically got off scott free..no justice
Tony Coll
Tony Coll Nov 13, 2020 9:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
White collar crime is not considered real crime... now a starving human being, no job due to ravaged, robs a store for food and money, lock the person up throw away the key.
Ernie Keebler
Ernie Keebler Nov 13, 2020 9:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why wouldn't he settle for 10 percent of his annual salary? Thievery pays well. The bank makes tens of billions and he made tens of millions on misdeeds. Crime pays as long as you are wealthy. Doesn't spend one day in jail or any real consequence.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email