October 12
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Stumpf announces he will be stepping down from his positions as CEO and Chairman.
Tim Sloan becomes CEO and Stephen Sanger becomes Chairman.
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The Players and
Their Punishments
Who are the leaders?
Who are the followers?
September 27
The bank's independent directors announce that Stumpf will forgo $41 million worth of promised compensation, his bonus, and his usual salary as they launch an independent investigation.
•Wells-Fargo customers
•branch employees
•executives and the CEO
•firm as a financial institution
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September 22
Who is culpable?
September 29
A group of Senate Democrats ask the U.S. Department of Labor (DOL) to open an investigation into whether Wells Fargo violated the Fair Labor Standards Act (FLSA).
Stumpf resigns from his position on the Federal Advisory Council
Stumpf begins a hearing with the House Financial Services Committee
over the
scandal.
September 26
Two former employees of the bank file a lawsuit against the bank to represent employees, who have worked for the bank during the last ten years and who suffered for not meeting “impossible” quotas the bank set.
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September 16
The House of Representatives' Financial Services Committee opens an investigation into the bank's alleged misconduct.
September 14
September 20
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FBI and federal prosecutors in New York and California begin to probe the bank over the alleged misconduct.
This development opens the possibility of criminal charges.
Stumpf appears in front of the Senate Banking Committee.
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Elizabeth
Warren
(D-Mass.)
calls for his
resignation.
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September 8
September 13
The Consumer Financial Protection Bureau (CFPB), the Los Angeles City Attorney, and the Office of the Comptroller of the Currency (OCC) fines Wells Fargo $185 million.
The bank announces it will be ending its controversial employee sales goals program effective Jan. 1, 2017.
Stumpf appears on CNBC, stating that he will not resign.
When does goal-setting go beyond transformational leadership?
The "Gr-eight" Fall
of Wells Fargo
Are incentives a form of trade, or an exercise of power?
- serve a legitimate purpose
- voluntary in nature
- effect on character of individuals
Doing vs. allowing to happen
What Would Do?
Erin Dunstan & Megan Hill
•Confucius •Lao Tzu •Aristotle
•Plato •Kant •Rand •Mill
1) Timeline of Events
2) Circumstances
3) Ethical Analysis
What do you think?