4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Wells Fargo says Americans timid with investments

Retiring Wells CEO aggressive inside the bank

Yesterday (October 11) Wells Fargo released a study concluding that many Americans are investing too conservatively for their retirement.

Sponsored
Sponsored

Today (October 12) Wells Fargo announced that its chief executive, John Stumpf, will retire, effective immediately. Stumpf took the heat, including before Congress, for the bank's strategy of putting so much pressure on employees to fatten profits that they invented phony credit cards and bank accounts. Stumpf will walk away with $123.6 million in severance and stock value, according to USA Today. Some other publications have different numbers, but all agree Stumpf will walk off with a bundle of money.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Gonzo Report: Bang Bang’s Tokyo subway motif and Chicago house music

It’s a restaurant, it’s a nightclub, it’s a dope photo op

Yesterday (October 11) Wells Fargo released a study concluding that many Americans are investing too conservatively for their retirement.

Sponsored
Sponsored

Today (October 12) Wells Fargo announced that its chief executive, John Stumpf, will retire, effective immediately. Stumpf took the heat, including before Congress, for the bank's strategy of putting so much pressure on employees to fatten profits that they invented phony credit cards and bank accounts. Stumpf will walk away with $123.6 million in severance and stock value, according to USA Today. Some other publications have different numbers, but all agree Stumpf will walk off with a bundle of money.

Comments
Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Will high egg prices relax San Diego's poultry raising rules?

Eggs a hot commodity in food exchanges
Next Article

Sultan Baklava brings its kebob back to El Cajon

The Turkish bakery once again joined by its counterpart Mediterranean grill
Comments

Same kind of crap that John Moores and Peregrine Systems did to pressure sales reps to inflate sales figures and juice the stock prices to phony highs for their "pump and dump" schemes. It is quite common in business to keep "moving the goal posts" continually raising the quotas for sales people and business development management constantly that implicitly encourages fraud..by employees or the alternatives are that they cannot make their quotas, cannot make their bonuses and commissions, cannot make a decent living since most of their income is designed to be commission and bonus based...It is a system that encourages rampant fraud..

Oct. 13, 2016

SportsFan0000: Yes, there are similarities with Peregrine Systems, but there are stark differences, too. At Wells Fargo, mid-level employees were given such high sales goals, and pressured so much to produce, that they felt they had to create phony credit cards and bank accounts. So the actual commission of the fraud was pushed to lower level employees. Top management didn't have to say a word.

Peregrine's fraud was pulled off completely by top management and the board. Top officials did such things as making phony sales with other companies, keeping the books open long after a quarter was over to jack up sales, etc. The most repugnant aspect of the Peregrine swindle was that Moores and his board members got off the hook. All they had to do was make a payment. That's typical San Diego justice: don't touch the real villains, who are among the richest people in town. Best, Don Bauder

Oct. 13, 2016

Stumpf would not void the binding arbitration clause in Wells Fargo consumer banking contracts for those customers who had the bogus accounts created. What does that tell you? Quite a bit. Binding arbitration allows companies to become bad actors, because they can't be held accountable for their transgressions in a court of law with a jury trial. Decisions by the arbitrator are final, non-appealable, and do not affect precedent. It's a good thing the Consumer Financial Protection Bureau is considering prohibiting the use of binding arbitration in consumer banking contracts. Let's hope the CFPB's anti-arbitration push is not overridden by Congress. There needs to be the threat of lawsuits in a court with a jury to keep companies honest.

Oct. 13, 2016

hwstar: I agree. Binding arbitration clauses permit mischief by the corporation and often screw the customer. Banks, brokerages houses and other institutions use them and abuse them.

Incidentally, you may want to read a Reader column I did July 31, 2013, titled "Warning: Read the bank's fine print." This is about a dubious ripoff pulled off by Wells Fargo. Best, Don Bauder

Oct. 13, 2016

Why does the Federal Govt. think Wells Fargo is the only one? These ideas were not kept top secret in the banking community. .

Oct. 13, 2016

CRUCIAL point! "These ideas were not kept top secret in the banking community." I seriously doubt that thousands of employees came up with the same idea simultaneously.

Oligarchy, monarchy--what's the essential difference?

Oct. 13, 2016

Flapper: Creation of phony accounts was not invented by Wells Fargo. Best, Don Baudeer

Oct. 13, 2016

nostalgic: I am sure the federal government knows that the big banks, in particular, use such strategies to squeeze every nickel out of the business to come up with profits each quarter that please Wall Street. Often, however, regulators will go after one company and others in the industry have to fall in line. Best, Don Bauder

Oct. 13, 2016

FOREGO WELLS FARGO!

HOW FAR WILL WELLS FARGO GO?

A BLATANT FAR(RA)GO OF LIES!

ILLS FARGO

GO FAR, WELLS! FAR, FAR AWAY!

AUK! NAG A RAM!

(SUPERSTRIKE BUMPERSTICKERS)

Oct. 13, 2016

Flapper: Wells Fargo was loved by Wall Street. It kept coming up with steady profits, quarter by quarter. Hmmm. Best, Don Bauder

Oct. 13, 2016

What fraction of the profits were earned, and what fraction were not? Of the latter fraction, what fraction were the result of fraud and/or theft?

Oct. 13, 2016

Flapper: Luckily for Wells Fargo, analysis of banks' profit and loss statements and balance sheets is not easy. Best, Don Bauder

Oct. 13, 2016

How do the "fines" compare to the ill-gotten gains?

Oct. 13, 2016

Flapper: Government fines to Wall Street crooks are a bit of a joke. The fines, after the bank accountants and tax preparers play games, have little significance. Best, Don Bauder

Oct. 13, 2016

Of course Americans are hesitant to take risks with the piddly retirement funds. Most working folk can not afford to put aside the kind of money necessary to retire on. The 401k plans were never designed to be a be all end all retirement plan. When introduced they were to be part of the retirement plan. Part one was a defined benefit plan provided by the employer, part two was the 401k, and the third part was Social Security. Combined they provided a decent retirement. What happened is what always happens. Employers dumped their defined benefit plan and kept the 401k. Some provided a defined contribution plan. All of these plans relied on the average person to direct the investments. Many lost money when they invested aggressively, like Wells Fargo wants you to do, others discovered that the fees charged reduced their principle and many discovered that their defined contribution plan had less in it than they put in. With the high cost of living and the low wages in San Diego there is little chance that a worker will ever be able to retire. What we are investing in is future poverty. Who do you think will be supporting the Walmart workers when they are too old to work? The taxpayer will while the company reaps huge profit built on the backs of the workers.

Oct. 14, 2016

AlexClarke: The private sector for the most part eliminated defined benefit plans. The public sector by and large did not. Result: huge pension deficits in American cities. Best, Don Bauder

Oct. 14, 2016

"Many lost money when they invested aggressively, like Wells Fargo wants you to do, others discovered that the fees charged reduced their principle and many discovered that their defined contribution plan had less in it than they put in."

The principle is to get as much of your money as possible, even the principal. I don't know how much their principles can be reduced--they're lower than a snake in a wagon-rut already.

Punishment like that I could handle--a six-figure golden parachute studded with precious jewels.

Oct. 14, 2016

Flapper: "Lower than a snake in a wagon rut." Never heard the expression. Good one. Congratulations. Best, Don Bauder

Oct. 14, 2016

Trumped you AT LAST!

Oct. 14, 2016

Flapper: You have Trumped me many times, even though my first name is Donald. Best, Don Bauder

Oct. 15, 2016

Just stick with Don. As in don Don.

Oct. 15, 2016

Flapper: I have a sweatshirt with these words on the front: "The Don." When I wear it, invariably somebody cracks that he doesn't want me to take a baseball to his knees. With our loose gun laws, it's a bit of a surprise that somebody has not pulled out a pistol and put "The Don" away. Best, Don Bauder

Oct. 15, 2016

Just don't ad ald.

Oct. 15, 2016

Flapper: You wouldn't like to see me in a sweatshirt with the words "The Donald"? Best, Don Bauder

Oct. 16, 2016

You just made me regurgitate. And expectorate.

Oct. 17, 2016

Flapper: Regurgitating and expectorating at the same time would be a difficult feat. Best, Don Bauder

Oct. 17, 2016
This comment was removed by the site staff for violation of the usage agreement.
Aug. 21, 2019
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close