Wells Fargo exec who headed unit involved in scandal due $125 million in retirement

[WestVirginiaRebel]

Fox News:

The Wells Fargo executive who oversaw a unit that created almost 2 million unauthorized customer accounts is set to retire from the company with a nearly $125 million payday, and reports say the bank isn’t likely to cut the strings on her golden parachute as she walks out the door.

 

Carrie Tolstedt, 56, announced her retirement in July, effective at the end of the year, and is set to receive $124.6 million via stock, options and restricted shares accrued during her 27 years at Wells Fargo, Fortune reported Monday. Tolstedt headed the infamous community banking unit where employees created unauthorized deposit accounts and credit accounts in an effort to meet sales goals. The dummy accounts charged individual customers up to $50 in fines for a service they never requested, The New York Daily News reported.

 

"There are two possibilities: Customer abuse was part of business model, in which lots of high-ranking people need to go to prison," Bart Naylor, a financial policy advocate for Public Citizen, told The Washington Post. "Or the bank is too big to manage, and folks high up don’t even know that laws are being broken a few levels down."

 

It’s unclear when Tolstedt became aware of the scam and she was not named in any Consumer Financial Protection Bureau paperwork. The fallout from the scandal resulted in the firing of 5,300 employees and a massive $185 million fine levied by various regulators.

 

“Those issues should have been caught sooner and dealt with more forcefully,” Mike Mayo, an analyst at CLSA Ltd., wrote Monday in a client note obtained by Bloomberg.

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Just because you're a crook, doesn't mean you can't get your golden parachute...