What is so scary about huge bank CEOs

From Reuters here:

John Stumpf, the CEO who retired under pressure from the scandal in October, was criticized for failing to grasp the gravity of the sales abuses and their impact on the bank.

In the 110-page report, Stumpf was described as blinded by Wells Fargo’s cross-selling success. He refused to believe the model was seriously impaired and was full of admiration for Tolstedt, with whom he had a long working relationship. According to one director, Stumpf praised Tolstedt as the “best banker in America.”

Here we have a former CEO of a giant bank and he is calling one of his bankers the “best banker in America” while that very person has created and is running a fraudulent sales machine right under the dude’s nose.

He likes the results of what the fraud has produced but he assumes that everything is legal and ethically done.

Here I was thinking that a manager is supposed to question and manage a situation, including making sure that his senior employees are acting legally.

Apparently that is too much to ask in our society today.


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