ELIZABETH WARREN: Wells Fargo's CEO losing $41 million in stock is a 'small step' but not enough

Elizabeth warrenWin McNamee/Getty ImagesSen. Elizabeth Warren grills Wells Fargo CEO John Stumpf at a hearing in Washington, D.C.

Elizabeth Warren doesn’t think Wells Fargo went far enough by taking away $41 million in stock-based compensation from CEO John Stumpf. 

In a tweetstorm on Wednesday, the Democratic Senator from Massachusetts said that the clawback authorised by the Wells board of directors was a “small step in the right direction,” but not a complete solution.

“Wells Fargo CEO Stumpf will be just fine: he keeps his job & most of the money he made while massive fraud went on under his nose,” Warren tweeted.

She also reiterated her claim made during Stumpf’s testimony last week to the Senate Banking Committee that he should return all the money he has made since 2011, when the bank’s employees began opening accounts without customers’ knowledge. She repeated her belief that Stumpf should resign and be criminally investigated by the Department of Justice and the Securities and Exchange Commission.

Stumpf and Wells have been under fire for nearly a month after announcing the bank would pay $185 million in restitution to its regulators for opening 2 million accounts without the knowledge of customers. Senators alleged that the high stress environment at the bank led to the scandal.

Warren said that this high pressure culture lead to the firing of junior level employees, but Stumpf is only facing losing part of his pay.

Stumpf is scheduled to go before the House Committee on Financial Services on Thursday at 10 a.m. ET.

Here’s the full tweetstorm from Warren:

 

 

 

 

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