This is Jim Sawyer for Capitalism in Crisis.org
Wells-Fargo Bank, in April, clawed back an additional $75 million from two executives it now holds accountable for the bank’s five-year sales scandal. As many as two-million fake customer accounts were opened at management’s behest.
Since September, government oversight has forced Wells to walk back blame-shifting onto 5300 employees who had been scapegoated, then fired. This most recent financial claw back, accompanied by a scathing 113-page internal report, blames former Wells chief executive John Stumpf, and former community banking head Carrie Tolstedt.
See the link to the New York Times article, below.
It is a unique story at Wells-Fargo, but same-old, same-old regarding one more way in which the American financial system is gamed by elites who take the money and run. If you saw Michael Lewis’s film—The Big Short—you saw Great Recession-era mortgage bankers rigging America’s finances for their self-interest…far too often, to get something for nothing.
Of course, gaming the system redistributes resources from most everyone else’s pockets—to theirs. When this happens, capitalism’s productivity—and effectiveness—diminishes.
How do they get away with it; and what can be done to stop it?
Check out links to some helpful Capitalism in Crisis Podcasts on fraud, below.
From Boulder, Colorado, this is Jim Sawyer for Capitalism in Crisis Dot Org.