How many whistleblowers did the Feds ignore? In the Wells Fargo case about 700.

How many whistleblowers did the Feds ignore? In the Wells Fargo case about 700.

File photo taken in 2010 shows a Wells Fargo sign outside a bank branch in Palo Alto, Calif.

Most tellingly, bank examiners assigned to review Wells Fargo were aware of approximately 700 whistleblower complaints related to "gaming of incentive plans" when they met with senior managers of the San Francisco-based bank in January2010, the report said.

Carrie Tolstedt, who at the time headed the community banking division that was ground zero for the scandal was dismissive of the complaints, attributing them toa corporate culture that encouraged valid claims "which are then investigated and appropriately addressed," the report said. Tolstedt also saidthe bank's sales incentive programs were capped at 10% to 20% of bank workers' total compensation "to keep motivation in check." Tolstedt no longer works for the bank and has had to give back millions in compensation in connection with her role in the scandal.

According to the report, there was "no evidence that examiners required the bank to provide an analysis of the risks and controls, or investigated these issues further to identify the root cause and the appropriate supervisory actions needed."

Additionally, Wells Fargo's board of directors received regular reports dating back to 2005 indicating that the highest volume of internal ethics complaints at the bank involved "sales integrity violations." The OCC's Wells Fargo team received the same reports as early as 2010. However, the report said records don't "indicate examiners investigated the root cause."

Recommending tighter OCC scrutiny, the report said the Wells Fargo oversight fiasco provided "meaningful lessons learned" about the importance of comprehensive analysis of complaints by bank employees and whistleblowers, as well as proper supervision of "controls around high-risk incentives."



Add Comment

all comments

  Other news

more
Lady Louise Windsor, 13, takes after grandfather Prince Philip carriage driving

Lady Louise Windsor, 13, takes after grandfather Prince Philip carriage driving..

26-Jun, 08:12

The young lady's grandfather Prince Philip fell in love with the sport in...

Jeep tops Cars.com list of American-made vehicles, ousting Toyota

Jeep tops Cars.com list of American-made vehicles, ousting Toyota..

26-Jun, 07:44

The 2017 Jeep Wrangler Chief Edition. Two Jeep sport-utility vehicles...

Jacqueline Jossa shares delight after tying the knot with Dan Osborne: 'Best day ever'

Jacqueline Jossa shares delight after tying the knot with Dan Osborne: 'Best day ever'..

26-Jun, 11:36

Huge congratulations to Jacqueline Jossa and Dan Osborne! The couple, who...

Foreign terrorists exploit human rights law to escape deportation  report

Foreign terrorists exploit human rights law to escape deportation report..

26-Jun, 09:24

Up to 40 foreign terrorists have exploited UK human rights laws to escape...

Bad weather hampers search for missing US climber

Bad weather hampers search for missing US climber..

22-Jun, 08:25

The Russian Emergencies Ministry says the search for a missing American...

Japan's Nikon sues ASML, Zeiss for using chip-making knowhow

Japan's Nikon sues ASML, Zeiss for using chip-making knowhow..

24-Apr, 06:08

Nikon Corp. says it has taken legal action in the Netherlands, Germany...

The Latest: Le Pen Vows to Pull France out of EU, NATO

The Latest: Le Pen Vows to Pull France out of EU, NATO..

05-Feb, 11:04

The Latest on France's far right conference Sunday in the southeast city...

Nepal celebrates anniversary of Mount Everest conquest

Nepal celebrates anniversary of Mount Everest conquest..

29-May, 04:13

Nepal's mountaineering community was celebrating the first conquest of...