November 20, 2020

Ex-Wells Fargo CEO John Stumpf misled investors in accounts scam: SEC

first_imgJohn Stumpf, chief executive officer of Wells Fargo & Co., waits to begin a House Financial Services Committee hearing in Washington, D.C., U.S., on Thursday, Sept. 29, 2016.Andrew Harrer | Bloomberg | Getty Images Wells Fargo was later found to have inflated that metric by putting millions of customers into products without their consent, a scandal that cost Stumpf his job in 2016 and even that of his successor Tim Sloan. Current CEO Charlie Scharf took over a year ago and has been tasked with overhauling the fourth biggest U.S. bank and satisfying regulators’ demands for better controls.“If executives speak about a key performance metric to promote their business, they must do so fully and accurately,” said Stephanie Avakian, director of the SEC’s Division of Enforcement.The SEC’s complaint, filed in California, charges Tolstedt with fraud and seeks penalties and to ban her from being an officer or director of a public company.- Advertisement – Ex-Wells Fargo CEO John Stumpf and former deputy Carrie Tolstedt were charged by the Securities and Exchange Commission with misleading investors about the bank’s success in selling multiple products to customers.Stumpf agreed to pay a $2.5 million civil penalty to resolve the matter, allowing him to avoid admitting or denying the charges, the SEC said Friday.The two executives had certified in 2015 and 2016 investor disclosures that touted the firm’s supposedly robust “cross-sell” metric, despite knowing it was misleading, the SEC said in a statement. The metric is an industry term for how many products a single customer has.- Advertisement – According to the SEC’s complaint, Tolstedt publicly endorsed the firm’s vaunted cross-sell metric from 2014 through 2016, despite the fact that it was “inflated by accounts and services that were unused, unneeded, or unauthorized.”In an e-mailed statement, Tolstedt’s lawyer Enu Mainigi called his client “an honest and conscientious executive.”“It is unfair and unfounded for the SEC to point the finger at Ms. Tolstedt when her statements were not only true but also thoroughly vetted by others as part of Wells Fargo’s policies, procedures and systems of controls,” Mainigi said. “Ms. Tolstedt acted appropriately, transparently and in good faith at all times.  We look forward to setting the record straight and clearing her name.”Earlier this year, Wells Fargo paid $3 billion to settle several U.S. probes into its operations, including a $500 million deal with the SEC. The regulator said it will distribute money collected from Stumpf and the bank to investors.center_img – Advertisement – – Advertisement –last_img read more

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Man City Beats Chelsea on Penalties to Win Carabao Cup …

first_imgArrizabalaga refused to come off and Sarri backed down in a rage, before his misery was completed as City won the shootout, with Raheem Sterling scoring the winning penalty.Ilkay Gundogan, Sergio Aguero and Bernardo Silva scored from the spot for City and even though Arrizabalaga saved from Leroy Sane it was to no avail.Jorginho’s spot kick was saved by Ederson and David Luiz hit the post as Chelsea were sunk, despite Cesar Azplicueta, Emerson and Eden Hazard converting their kicks.Manchester City retained the trophy but Arrizabalaga’s insubordination will be the headline story.The scenes inside Chelsea’s dressing room hardly bear thinking about after the chaos of those closing moments at Wembley.Arrizabalaga’s point-blank refusal to be replaced by Caballero led to furious exchanges between Sarri and his technical staff, with the Italian looking at one stage as if he would storm away and leave his Chelsea players to it for the conclusion.He eventually returned but blazing with fury. Antonio Rudiger then restrained Sarri as he appeared set on confronting Arrizabalaga after his one-man rebellion.Of course, the goalkeeper was seriously at fault, showing his manager a complete lack of respect in ignoring his demands.What, however, does this say about Sarri’s authority and rule at Stamford Bridge that he backed down instead of demanding the goalkeeper obey his demands?The sad aspect was that this was a tactically sound and spirited Chelsea display, in sharp contrast to the 6-0 mauling at Manchester City on 10 February.Chelsea grew into the game and consider themselves unfortunate to lose in this manner – but the ramifications of those closing moments will reverberate around Stamford Bridge and could have very serious consequences for both Sarri and his goalkeeper. Manchester City won the Carabao Cup 4-3 in a penalty-shoot out at Wembley yesterday after Chelsea goalkeeper Kepa Arrizabalaga defied manager Maurizio Sarri’s attempt to substitute him.City claimed the first major trophy in their four-pronged assault on silverware but this stale final, which was goalless after extra-time, will be remembered for an almost unprecedented challenge to Sarri’s authority by Arrizabalaga.The £71m Spanish keeper, Chelsea’s club record signing, had been struggling with cramp in the closing stages of extra-time and Sarri decided to send on substitute Willy Caballero, who saved three penalties in a shootout to help Manchester City win this trophy against Liverpool in 2016. Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more

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