In Wells Fargo Scandal, The Buck Stopped Well Short Summary

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TL;DR –The Wells Fargo Vice President who oversaw the retail division which was responsible for mass fraud should have been fired rather than allowed to retire.

The article “In Wells Fargo Scandal, the Buck Stopped Well Short” by Susan Ochs examines the behavior of Wells Fargo in regards to the Carrie Tolstedt. Carrie Tolstedt was the Wells Fargo Community Banking senior vice president during the time where thousands of fraudulent accounts were created by employees who directly or indirectly reported to her.

Starting last November, Wells Fargo was under investigation of fraud based on customer complaints concerning account being opened in their name without their knowledge. Ms. Tolstedt was in charge of over 94,000 employees in the Community Banking division during the five years of fraudulent activity. Ms. Tolstedt decided to retire in July, 2016 when the investigation was moving toward finality. Wells Fargo allowed Ms. Tolstedt to retire and take with her around $125 million in stock options while around 5300 of her former employees are getting fired for their part of the fraudulent activities. The author feels Wells Fargo did an injustice to society and Ms. Tolstedt’s former employees by allowing her to retire and take all of her stock options with her, since she should have been
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Tolstedt’s knowledge unless there was a drastic lack of leadership, which in either case should prevent her from taking her riches and running. The author believes the new rules which were created after the banking crisis would allow Wells Fargo to take back the stock options and possible some of her wages, due to her inadequate supervision and subsequent fraudulent activities of her employees. Would it be ethically responsible for Wells Fargo to pull back the monies, due to the fraudulent activities, from the author’s point of view it definitely would be ethical and

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