Wells Fargo’s CEO is Facing Punishment, Thanks to Elizabeth Warren
Warren Nails Wells Fargo CEO John Stumpf
Information has emerged that indicates Wells Fargo’s CEO, John Stumpf will face financial punishment for his role in the 2008 financial crisis. This is the first time since the crash that a CEO of one of the major banks involved in the crippling of the US and global economy will face such punishment and it is in no small part down to the role played by Democratic Senator for Massachusetts, Elizabeth Warren.
Senator Warren has dedicated much of her political career to uncovering the truth behind the 2008 financial crisis and has undertaken years of work to ascertain what happened, why it did so and ultimately to bring those responsible to some degree of justice. This culminated in a senate hearing last week where Senator Warren castigated and publicly chastised Mr. Stumpf for his role in the crash with a frequency and weight of questioning that would reawaken even the most apathetic of political cynics to the virtues of representative democracy.
As per The Huffington Post, it has emerged that Stumpf is set to forfeit $41 million in unvested stock, forego his $2.8 million annual salary (for an unspecific period of time) and he will also receive no bonus this year. While this development is certainly very welcome, it does not mean that Stumpf will be at risk of going hungry anytime soon, as he has maintained his CEO position at Wells Fargo and also managed to hold onto $247 million worth of stock that he had previously accumulated.
Perhaps it is a sign of Senator Warren’s character and commitment to achieve real justice for the millions of Americans who suffered during the financial crisis that she is unwilling to regard this most recent development as a victory. Perhaps she is also cognizant of the fact that despite 5,300 low and mid level Wells Fargo employees losing their jobs because of their role in the crisis since 2011, the gross negligence, mismanagement and downright illegal behavior of Mr. Stumpf and his peers at the highest echelon of the company has, until now, gone unpunished. In a response to recent events, Warren took to twitter to state that:
This is a small step in the right direction, but nowhere near real accountability
While it is clear that this development is a drop in the ocean compared to the pain and hardship experienced by the millions of families who lost their home or the equity on their home during the financial crisis because of the actions of Mr Stumpf and others, it is nonetheless a first step on the road to achieving some type of justice for them and taxpayers across America. And for that, Senator Warren should be thanked.