I
would imagine “exasperation” would appropriately describe
my emotion each time I read about corporate malfeasance gone amuck. I
can’t recall too many things I’ve described as “gone
amuck,” but Wells Fargo setting up fake customer accounts
counts as a “gone amuck” circumstance. (I said Well Fargo
because I refuse to use mainstream media’s culprit, “Wells
Fargo employees” because they were just doing what they were
instructed to do.) My exasperation comes, not necessarily at the
unauthorized act, but at the disparity in rewards and punishments the
players received.
In
social media parlance, I’d SMH (that’s “shake my
head”); but instead, I’m SMF (shaking my fists)
throughout this whole commentary. You know. It’s comparable to
saying, “That’s a doggone shame” whenever you sigh
at learning about a tragic news story or a society or cultural
travesty.
Two
Wells Fargo executives who were publicly chastised over the company’s
opening of millions of bogus accounts must give back millions more
dollars in pay, according to the bank’s board of directors. The
board is clawing back an additional $47 million from Carrie Tolstedt,
who headed the sales division, and $28 million from former CEO John
Stumpf. Oh, let me insert a sidebar here: don’t you find it
funny that it’s only in times like these—punishment—that
women are put in the lead? Reminds me of New Jersey Governor Chris
Christie’s “Bridgegate” incident, where the most
severe punishment was meted out to a female.
Another
indignity of which I am compelled to remind you is the continuous
drumbeat of conservatives to “let the market police itself,”
referring to the incestuous desire of right-wing activists to push
for deregulation of corporate markets and industries. This principle
(and demonic desire) of self-policing is the
reason ineffective pharmaceuticals harm and maim sick, trusting and
vulnerable patients and
it’s why passengers in the case of the United Airlines incident
get brutalized and literally dragged off planes to accommodate
seating for crew members. Everyday Americans get screwed and the
perpetrators know that they’ll face minimal, if any, negative
consequences. Corporations run amuck. We cannot embrace the ideal -
and pipe dream - that the market can or should police itself. If you
blink too long, corporations like Wells Fargo will steal your trust,
your confidence and surely, your money.
The
compounded indignity is that corporations - and yes, governments too
- deny their culpability, role and/or guilt until it’s no
longer tenable or fiscally sustainable to do so. The power elite deny
that their failures are failures. Corporations cry uncle only when
customers galvanize campaigns that nowadays, thanks to the viral
nature of social media, threaten serious damage to the corporate
bottom line.
How
did Wells Fargo find itself embroiled in the fake-accounts scandal?
According to a 110-page report released by its board, Stumpf “was
too slow” to see problems in sales practices that brought a
$185 million punishment from the Consumer
Financial Protection Bureau
(CFPB).
By
the way, the CFPB is another oversight entity that conservatives have
convinced both Republicans and a few idiotic Democrats, to
deconstruct. The report says he also failed to protect the bank’s
reputation from what the CFPB has called “the widespread
illegal practice of secretly opening unauthorized deposit and credit
card accounts.”
Look,
we, the general public, didn’t need a 110-page report to know
that companies like Wells Fargo are greedy thieves and rob the bottom
90% blind. We know the report was a public relations effort to cover
their sorry asses! The saddest part of any of these incidents is that
the very people affected by any of these thefts don’t speak out
against or even boycott these financial products or institutions, nor
do they see a need to. We cannot continue to make rich the very
people who are keeping us poor.
What
I’ve come to learn is commonplace: whenever the big fish get
caught stealing out of the tank, it’s the little fish that get
left with no water. Wells Fargo fired over 5,300 employees over the
fake-accounts scandal — (the bank’s board played its
‘trump’ card, claiming it was led to believe the number
was far fewer). The report says Stumpf “did not appreciate the
scope and severity of the problem” and that he “continued
to publicly support the appropriateness of Wells Fargo’s sales
goals and to highlight that the vast majority of Wells Fargo
employees ‘got it right.’” It’s clear from
that statement that the Wells Fargo board knew that Stumpf knew that
the underlings at the company were stealing for the top 10%. What’s
not clear is why the bank’s upper crust and its oversight
henchmen are not serving jail time.
The
disparity alone in assessing blame and penalty should be enough for
you to do an about-face if you felt the tiniest grain of sympathy for
Wells Fargo, United or any one of that ilk. In the words of Sen.
Bernie Sanders, “re-look” at the Panama Papers (the
unprecedented leak of 11.5 million files from the database of the
world’s fourth biggest offshore law firm, Mossack Fonseca). In
2016, an anonymous source leaked the files to the
German newspaper Süddeutsche
Zeitung,
that, in turn, shared them with the
International Consortium of Investigative Journalists
(ICIJ). The ICIJ then shared them with an impressive network of
international partners, including the Guardian
and the BBC.
The
Panama Papers showed the myriad ways in which the rich exploit
secretive offshore tax regimes. Twelve national leaders are among the
143 politicians, their families and close associates from around the
world known to have been using offshore tax havens. Not paying your
taxes is theft to the country that grants licenses to individuals to
do business in that country. That’s one reason why the
so-called US President, Donald Trump, hasn’t released his
taxes.
Both
Stumpf and Tolstedt had previously been forced to return $69 and $67
million, respectively. What kind of individual needs that kind of
money? Though Stumpf resigned in October 2016, he ran it ‘til
the wheels fell off!; ‘til he got caught!
In
another Wells Fargo scandal, an estimated $5.4 million will be
awarded to a former manager who was fired after reporting suspicions
of fraudulent behavior, and the manager will be reinstated. In its
largest whistleblower case as of this publication, the federal
Occupational Safety and Health Administration (OSHA) will be in for a
fight because Wells Fargo has stated its intent to appeal.
Wells
Fargo’s behavior is not
unusual.
Corporate malfeasance has become the norm. Last Fall, it was Wells
Fargo; this month it’s United, etcetera. Social media can be a
powerful tool for fighting corporate and government abuses, and we
need to remember that. So before you so willingly share of yourself
on FaceBookInc,
take a few minutes to initiate and respond to a call for action - to
protest and boycott. When we stop corporations from exploiting us,
they will
STOP - if only to pause from the abuse. If we step into that gap
permanently, we permanently stop the abuse. That’s our only way
forward.
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