How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
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Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#2Look I love Elizabeth Warren but this whole article is really over the top.
> leaders of financial institutions are painfully aware that there are consequences
They were fined lousy 280m and the CEO was allowed to resign a full 3 years after it was first reported. Really, REEAAALLLY painful stuff there.
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#3Can we remove:
-"Why x matters" -"What we know" -"Slammed" and -"Number x will shock you!"
from all news headlines?
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#4This is good. Articles like this however always seem to recall the subprime mortgage crisis, when "too big to fail" sheltered CEOs and banks from much fallout.
I would like to express to Sen Warren, and others, that a more fragmented & transparent financial system is important-- but much less than the broadband & tech sector.
Google has 1.6B[0] users of a total of 3.8[1] internet users.
too big to fail is 42% of the world using "core" services from one institution.
The data is hard to find and I am on mobile but the consolidation of global broadband & wireless provideres attempted or closed between 2015-2016 was nearly 1 Trillion. A rollup of unprecedented levels.
[0]http://m.wolframalpha.com/input/?i=+total+active+users+googl... * While this is Alexa's visits total, subsets of Google's 10-k (which doesnt break this out because they are facing heavy competition) adjust to uniques. If someone finds better data, I will adjust, but this seems to be the accepted active user base of google.
[1]http://m.wolframalpha.com/input/?i=total+internet+users&x=0&...
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#5Look I love Elizabeth Warren but this whole article is really over the top. > leaders of financial institutions are painfully aware that there are consequences They were fined lousy 280m and the CEO was allowed to resign a full 3 years after it was first reported. Really, REEAAALLLY painful stuff there.
Its becoming cases of the wheels of justice turn, they turn slowly but they turn. The rate they are turning has become much faster (never --> 3 years is a big speed improvement) and the people that are getting caught in those wheels is a much higher level. 5 years ago clerks, now a CEO.
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#6Look I love Elizabeth Warren but this whole article is really over the top. > leaders of financial institutions are painfully aware that there are consequences They were fined lousy 280m and the CEO was allowed to resign a full 3 years after it was first reported. Really, REEAAALLLY painful stuff there.
Its becoming cases of the wheels of justice turn, they turn slowly but they turn. The rate they are turning has become much faster (never --> 3 years is a big speed improvement) and the people that are getting caught in those wheels is a much higher level. 5 years ago clerks, now a CEO.
Then maybe we should ditch the wheels and use Hammers of Justice instead?
The ceo PERSONALLY made more money during the scam than entire bank was fined. really epic stuff here, I mean, Really, way to dish out the pain!
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#7I absolutely love Senator Warren. That being said, the notion that the stock price of Wells Fargo could be significantly impacted by this scheme (which is central to Ms. Warren's argument) is not well founded.
Wells Fargo makes 86 billion in revenue per year. Even if 10 million accounts were made and each made a thousand dollars -- (incredibly generous) ... over the course of 5 years this accounts for 1 billion in revenue or 200 million dollars per year. Annualized it is much less than 1% and would not inflate the stock price.
These guys definitely made a mistake. It wasn't calculated fraud. It was bad incentive setting. Politicians like Warren don't intuitively understand how hard it is to actually control a group of thousands of middle-class workers and get them to do things.It is not easy to govern ... sadly politicians are the least knowledgable in what it takes and they hurt good people like Stumpf (I trust his leadership and qualities because he was appointed by Buffett).
WF stock dropped a bit prior to the hearing and I bought as much as I could. Luckily most of Wall Street is smarter than such politicians and it paid off. Thanks Senator Warren.
What I would like to see is politicians be held to the same accountability as these guys. That would be hilarious. I wonder how well Obamacare would do if we could actually measure results based on metrics.
Our society needs people that can blend business acumen with the spirit and heart of people like Elizabeth Warren. Only Buffet or Gates come to mind.
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#8Look I love Elizabeth Warren but this whole article is really over the top. > leaders of financial institutions are painfully aware that there are consequences They were fined lousy 280m and the CEO was allowed to resign a full 3 years after it was first reported. Really, REEAAALLLY painful stuff there.
And keep his stock valued at $109million..... I am sure he is quite distraught.
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#9I appreciate that Warren didn't let Stumpf talk his way out of taking any responsibility for the actions of his employees and made a clear argument as to why he should be held accountable. Unfortunately, it seems the primary reason he resigned was because the public outrage was loud enough. It seems that until CEOs are personally held accountable via fines or prison (as Warren suggests) we won't see a very big change in their actions. He benefited personally from the policy he implemented, but ignored the negative consequences. The bank is fined, but he is not and keeps his bonuses.
Re: How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
#10Im too lazy to look, but I'm pretty sure this same thing was reported many times before.