Former Wells Fargo CEO John Stumpf.
I doubt that when Well Fargo CEO John Stumpf left his office earlier this week it was one of those scenes of a guy emptying his desk into a banker’s box and walking past a line of cubicles.
Wells Fargo says he got no severance package when he left.
But it is reported that he has accumulated $137.1 million in company stock, deferred compensation and a pension.
Stumpf headed a company that cheated people out of millions. He fired those who blew the whistle on the corrupt practices of his company. They received no company stock when they left. Thousands of low-level employees were fired for doing what they were ordered to do.
It was a huge crime. Nobody will do time.
As I wrote the other day, John Stumpf is small potatoes compared to Leon Black of Apollo Global Management.
Black steals from public pension funds.
Illinois’ Teacher Retirement System has been heavy into Apollo funds. I asked TRS board member and elected annuitant representative Bob Lyons how heavy were we into Apollo.
We have a past history investing with Apollo Global Management finishing with $62 million in Apollo V (01).
$141 million in Apollo VI (06), and $125 million in VII in (08) and finished (10).
In August 2013 we invested $300 million in Fund VIII. It is now $369 million.
“Since my first review I want back and looked at more recent minutes. I found in February 2014 we gave them $500 million divided between $250 million in Global Fixed Income and $250 million in Credit Investment with high return.”
Bob added, “Fred, these investments are separate from their private equity funds. Last, in our May minutes I found that we did a co-investment with Apollo in Fund VIII for $30 million.”
I expect I will be writing more about this.
Because I don’t understand why we would continue to do business with a guy we know cheats and steals from folks like us.
Fred Klonsky 
This information comes from CNN:
“…Stumpf made $19.3 million in 2015. But amid the scandal, he agreed to forfeit much of his 2016 salary, including his bonus and $41 million in stock awards, as the bank launched an internal investigation into the phoney accounts…
Stephen Sanger, the board’s lead independent director, said Stumpf and another top bank executive could face further penalties, depending on the results of the investigation. On Wednesday, the person close to the matter said the board will continue its probe, and that Stumpf’s retirement does not preclude further action against him.
..CEO Stumpf had been widely lauded as an everyday guy from middle America. He was one of 11 kids, and grew up getting his hands dirty working on his family’s dairy farm in Minnesota.
“We had tough times, and we were poor, but we got through it because we were in it together,” he told Fortune, adding that he shared a bed with two of his brothers until he was 18.”
……..
Obviously Stumpf didn’t learn anything from his tough times as a kid. Money is all that matters. How sad that someone who has such potential to help mankind fails as a decent human being.
And that past, Carol, deems his greedy actions to be the unkindest cut of all.
Yet again (& too many times in recent years), a case of “Have you no decency? Have you, at last, no decency sir?” (As said to Joseph McCarthy.)
Fred thanks for exposing pension investments in teacher retirement funds. I wonder whats going on in the LABF fund aside ftom Melody Hobson’s Ariel Investments with a big slice of my fund
From The Hill
Hellmann writes: “Following news that John Stumpf would retire immediately, Elizabeth Warren demanded he face investigation for a scandal that involved the creation of fake accounts for unwitting customers.”
…….
Where are the voices of the rest of the Senate? Are they all afraid of loosing campaign contributions from BIG MONEY?
http://www.nakedcapitalism.com/2016/10/earth-to-regulators-if-youre-going-to-ding-john-stumpf-how-did-you-miss-henry-kravis-leon-black-et-al.html