Wells Fargo ups sales practices settlement to $142 million

Marco Green
May 8, 2017

That's on top of the $185 million that Wells Fargo was fined by federal and local authorities back in September.

While all 15 board members kept their positions for another year, four directors received backing of 60 percent or less.

A preliminary tally announced by Wells Fargo (WFC) indicated that each nominee won a majority of the shareholder votes. The shareholder said the bank and board's response was "not good enough", and he wanted more details from each director. "We're focused on fixing what was broken, making sure that we're making things right by our customers", Wells Fargo CEO Tim Sloan told CNN this week. Some customers who came to speak pleaded for mortgage relief.

A few Wells employees also spoke positively about the bank, one saying that Wells is "not perfect" but he was proud to work there.

During their presentation, Wells Fargo executives vowed to banish the culture of high-pressure sales tactics that unleashed the banking scandal.

Brandon Rees, representing the AFL-CIO labor union, said he saw a pattern of “mushroom management” by the board.

"There is no doubt that the last seven months have been one of the most hard periods in our company's 165-year history", Sloan said at the start of the meeting Tuesday. Wells' board has advised shareholders to vote against a proposal calling for yet another internal investigation into the bank's sales practices.

"There is no one in the country that makes more loans to people of color than Wells Fargo", said John Taylor, CEO of the National Community Reinvestment Coalition, an alliance of 600 activist groups that pushes banks to loan to underserved communities.

The gathering was initially halted for several minutes after Bruce Marks, a consumer advocate who founded a group to help low- and moderate-income home buyers, began shouting without a microphone, asking that directors individually explain what they knew about improper sales.

Sanger tried to get Marks to sit down and wait until a specific Q&A session, telling him he was "out of order".

The meeting was halted and Marks was removed by security. But in practice, directors who win with less than 80 percent support should consider exiting the board, said Charles Elson, a University of DE expert on corporate governance."If they're below 80 (percent) I'd say they have a lot of soul-searching to do", he said.Sanger noted that six of Wells Fargo's directors are expected to leave over the next four years. Also, CEO Timothy J. Sloan bought 39,000 shares of the business's stock in a transaction on Monday, April 17th.

Nevertheless, after the meeting was reconvened, other shareholders stood up to hijack it.

(AP) - Shareholders irritated by the fallout from Wells Fargo's sales practices scandal sent a warning to the bank's executives and board, with some directors barely holding onto their jobs Tuesday in what is typically a symbolic vote.

Wells Fargo said the revised settlement, which is subject to court approval, will cover "all customers" claiming that without their consent the bank opened an account in their name, enrolled them in a product or service or submitted credit card or other applications.

Now the shares of Wells Fargo & Company (WFC) has a trading volume of 26.16 Million shares, with an average trading volume of 29550 shares - with shares dropping to a 52 week low of $42.90, and the company's shares hitting a 52 week high of $ 59.99.

Wells' almost three-hour long shareholder meeting was interrupted several times by protesters, with one man, Bruce Marks with the Neighborhood Assistance Corporation of America, effectively dragged out by armed security guards.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER