Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

The Stumpf Example a Big-Shot CEO Resigns in Shame. about Time

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

The Stumpf Example a Big-Shot CEO Resigns in Shame. about Time

Article excerpt

The bigger they are, the harder they fall, so the resignation of Wells Fargo CEO John Stumpf created quite a thud Wednesday on Wall Street. Let's hope that other CEOs were unnerved by the sound. They should take heed.

Thousands of low-level employees at Wells Fargo tried to meet sales quotas by creating as many as 2 million new accounts for customers without authorization. In some cases, the new accounts created fees for the unsuspecting customers, and employees debited authorized accounts in setting up the phony ones.

When this scandal came to light, Wells Fargo executives put on their dancing shoes and cued up the old corporate waltz: They minimized the impact, fired 5,300 employees, expressed regret and promised to behave in the future. This time, though, the performance fell flat.

During a Sept. 20 hearing, Sen. Elizabeth Warren, D-Mass, said Mr. Stumpf should resign and face a criminal investigation. Other senators assailed him for pinning blame on junior employees making peanuts and for presiding over a culture that nurtured misconduct. …

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