Wells Fargo’s Political Sacrifice - CEO John Stumpf is offered up to the Beltway gods.
The political class got its second ritual sacrifice for the sins of Wells Fargo, as the bank’s chairman and CEO John Stumpf resigned Wednesday, effective immediately.
Mr. Stumpf had already forfeited $41 million in unvested equity grants as recompense for the sales tactics that caused employees to open accounts that customers hadn’t asked for. Now he’s paying with his job, as the bank tries to appease the political lords who under Dodd-Frank have become more or less co-owners of our largest banks. The politicians claim to want compensation clawbacks, but what they really want are heads on pikes.
You won’t read this elsewhere, but Mr. Stumpf has been one of the most successful American CEOs of recent times. Our colleague Dennis Berman reports that in nine years he produced some $149 billion in profits and saw an increase in market cap of $124 billion. Wells Fargo tried to turn down the government’s rescue funds during the 2008 financial panic because it didn’t need the help, only to be forced by Treasury to take the money.Comments: Oh the selective outrage in DC. Dump on Trump (he deserved it) and demand clawbacks (deserved and delivered). Why not demand clawbacks from Secretary of the Treasury Jack Lew for his Cayman connections or his tenure at Citi when it received taxpayer bailouts of $45 billion in cash, and hundreds of billions more in loans and guarantees. See Rep. Garrett Says Democrats Have Double Standard for Clawback Rules . Oh the outage over Trump (this is more the media, I suppose (and deserved)) but none for Hillary for her campaign's mocking of Catholics, Southerners, ‘needy Latinos’