Ducks in a Row: John Stumpf — Abdicating Leadership/Passing the Buck
by Miki Saxon“Corporation, n. an ingenious device for obtaining individual profit without individual responsibility.” — Ambrose Bierce, The Devil’s Dictionary, 1911
Bierce’s words ring truer today than any time since he first wrote them; as shown most recently by Wells Fargo CEO John G. Stumpf.
But Mr. Stumpf — whom the members of the House committee personally blamed for the persistent and widespread misdeeds — stuck to the same script he has used throughout the crisis. The problem, he explained, was an ethical lapse among the 5,300 employees, most of them low-level bankers and tellers, who had been fired for their actions since 2011.
But he again rejected lawmakers’ attempts to cast the scandal as a consequence of broader failings in Wells Fargo’s leadership and corporate culture.
A rejection that is the purest bull poop I’ve heard recently.
Having been a customer long before Norwest acquired it in 1998 (acquired, although it was called a merger) I can honestly say that Wells attitude towards customers hasn’t changed — they are a necessary evil with no other purpose than to enrich Wells coffers.
At that time, Wells was known for its cutting-edge technology and lousy customer relations, while Norwest was famous for its customer-centric culture. Analysts predicted that as the acquirer Norwest’s culture would be ascendant.
So much for those predictions.
In case you think I’m exaggerating, there are $10 billion in recent fines to prove I’m not.
As Mr. Stumpf testified, a video screen on the hearing room’s wall displayed a scroll of more than a dozen fines Wells Fargo has paid in recent years, totaling more than $10 billion. The list included penalties for subprime loan abuses, discriminating against African-American and Hispanic mortgage borrowers, and foreclosure violations, among others.
Mr. Hensarling asked whether such fines are simply the “cost of doing business.”
Mr. Stumpf answered no, adding, “I don’t want our culture to be defined by these mistakes.”
Then how else should the culture for which Stumpf is responsible be defined?
Obviously, Stumpf doesn’t have the same sign on his desk as President Truman had on his, let alone buy into its meaning.
Wells Fargo — where the buck stops at the bottom.
Image credit: Wikimedia Commons
