Wells Fargo fires executives over banking fraud
All the terminated managers worked in Community Banking. Head of the unit, Carrie Tolstedt, lost her 2016 bonus, forfeited approximately $19 million in unvested equity awards and did not receive severance pay when she was fired.
Former Community Bank Chief Risk Officer Claudia Russ Anderson, Arizona Lead Regional President Pamela Conboy, former Los Angeles Regional President Shelley Freeman, and Head of Community Bank Strategy and Initiatives Matthew Raphaelson were terminated for cause by the Wells Fargo board of directors.
“None of these executives will receive a bonus for 2016,” Wells Fargo said. “They will forfeit all of their unvested equity awards and vested outstanding options.”
In addition to the latest employee terminations, the bank's former CEO John Stumpf was forced out after federal officials announced that bank employees had opened accounts without customers' permission. Up to 2 million bogus accounts were opened. The bank was fined $100,000 for the fraudulent accounts.
Wells Fargo terminated 5,300 other employees for opening the unauthorized checking and credit accounts.
The board's independent investigation should be completed by April, when the bank will hold its annual shareholders meeting. The results of the investigation and any following actions will be made public before the meeting.
Wells Fargo is one of the largest commercial bank agricultural lenders in the nation.