Watch Elizabeth Warren strip Wells Fargo Chairman and Chief Executive John Stumpf alive at a Senate hearing enquiring into Wells Fargo’s ‘cross-selling’ of bank products customers didn’t need. Wells Fargo, one of the US’ biggest banks, was fined $185million and 5300 employees at branch and teller level were sacked. The senior executive in charge was allowed to retire with nearly $100million in stocks. Warren thinks the top management should be held accountable. See what you think.
The full story is outlined here. “Cross-selling” of unwanted bank products is similar to what Australian-owned New Zealand banks did to sell interest-rate swap insurance to New Zealand farmers, for which they settled out of court after 256 farmer customers were compensated in 2015 by Westpac, ASB and ANZ bank to the tune of $23.67million. This represented a small number of farmers affected.
Labour Party primary industries spokesman Damien O’Connor hit out at the Commerce Commission following news of the Westpac settlement saying settling out of court removes the Commission’s obligation to protect the rights of farmers.
“From a farming perspective, the Commerce Commission is about as useless as tits on a bull,” O’Connor says.
“This deal means, along with agreements struck with ANZ and ASB, that banks have financed their way out of court action with nominal payments to a few hundred farmers, a small number of those affected. Many farmers were forced to sign confidentiality agreements when refinancing with the banks. The reluctance of the Commission to follow through with court action undermines the integrity of our legal system and reinforces the growing view that money buys justice,” O’Connor says.