SEC fines former Wells Fargo board member for misleading investors
John Stumpf, also former president of the banking institution, must pay 2.5 million dollars to the Securities and Exchange Commission of the United States
The United States Securities and Exchange Commission (SEC) fined former Wells Fargo president and CEO John Stumpf $ 2.5 million for misleading investors.
According to SEC statements, Stumpf signed and certified statements between 2015 and 2016 that “he should have known they were wrong” regarding Wells Fargo’s retail banking division’s strategy and reported metrics.
On the other hand, the regulator also brought charges against the head of the division, Carrie Tolstedt, for having released between 2014 and 2016 a metric indicative of Wells Fargo’s financial success that was inflated by unused, unnecessary or unauthorized accounts and services.
“If executives are talking about a key metric to promote their business, they must do it completely and correctly,” said the director of the SEC’s compliance division, Stephanie Avakian.
K. Tovar
Source: dpa
