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BadGimp

(4,019 posts) Sat Oct 15, 2016, 04:24 PM Oct 2016

CEO sold millions in Wells Fargo stock before fraud revelations

Source: CBSNews.com

Former Wells Fargo Chairman and CEO John Stumpf sold $61 million worth of Wells Fargo (WFC) shares in the month prior to settling a long-running investigation that charged the bank with falsifying millions of customer accounts to boost sales and fees.

The following month, when regulators announced on Sept. 8 that they’d fined Wells Fargo $185 million for falsifying more than 2 million customer accounts to meet aggressive sales goals, the company’s stock price plunged and Stumpf was called on the carpet before Congress before finally resigning this week.

Stumpf pocketed $26 million in proceeds from that August sale -- the shares in question were “incentive stock options” purchased at a discount to Wells Fargo’s current market price and then immediately sold at a profit -- reflecting a small piece of the rich incentive pay that Stumpf collected during his tenure at the top of the bank.

Read more: http://www.cbsnews.com/news/wells-fargo-ceo-john-stumpf-sold-millions-in-company-stock-before-bank-fraud-revelations/

How can this not be insider trading?

21 replies

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Highlight:

CEO sold millions in Wells Fargo stock before fraud revelations (Original Post) BadGimp Oct 2016 OP

I think it probably is n/t TexasBushwhacker Oct 2016 #1

But what about Martha Stewart? n/t SleeplessinSoCal Oct 2016 #12

For one thing, Martha Stewart's case was about far less money TexasBushwhacker Oct 2016 #13

Don Siegelman is still in prison. Bush years were dark times. SleeplessinSoCal Oct 2016 #17

An immoral banker ... Jopin Klobe Oct 2016 #2

Insider dumping! Grrrrr.... eom InkAddict Oct 2016 #3

Sen. Warren will not be happy. Laurian Oct 2016 #4

It's curtains for you, Rocky! Curtains! longship Oct 2016 #5

It doesn't count Staph Oct 2016 #6

Oh that would be sweet if he ended up in jail, where he belongs! nt SunSeeker Oct 2016 #7

Don't forget! AlbertCat Oct 2016 #8

While messy and carry the appearance of impropriety, "insiders" are allowed to sell stock melm00se Oct 2016 #9

So the question is, how long ago did he report his sale? TexasBushwhacker Oct 2016 #14

This is the definition of Insider Trading and against the law! PuppyBismark Oct 2016 #10

No actually, it isn't. A HERETIC I AM Oct 2016 #18

No Surprise Firestorm49 Oct 2016 #11

He belongs in jail!!! Only hard jail time will control these corrupt CEOs. n/t RKP5637 Oct 2016 #16

well isn't that special Skittles Oct 2016 #15

how can he not be in jail? ellenrr Oct 2016 #19

This explains why he so easily walked away. He already cashed out. (nt) apnu Oct 2016 #20

TexasBushwhacker

(20,219 posts)

1. I think it probably is n/t

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 04:26 PM

Oct 2016

SleeplessinSoCal

(9,145 posts)

12. But what about Martha Stewart? n/t

Reply to TexasBushwhacker (Reply #1)

Sat Oct 15, 2016, 07:10 PM

Oct 2016

TexasBushwhacker

(20,219 posts)

13. For one thing, Martha Stewart's case was about far less money

Reply to SleeplessinSoCal (Reply #12)

Sat Oct 15, 2016, 08:31 PM

Oct 2016

I found it a bit ludicrous to believe that a woman worth of hundreds of millions of dollars would do something as stupid as insider trading to avoid a $45K loss. I think it was a witch hunt, but that's JMHO.

SleeplessinSoCal

(9,145 posts)

17. Don Siegelman is still in prison. Bush years were dark times.

Reply to TexasBushwhacker (Reply #13)

Sun Oct 16, 2016, 02:28 AM

Oct 2016

Martha was a billionaire on her own. She was taken down by the boys.

Jopin Klobe

(779 posts)

2. An immoral banker ...

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 04:31 PM

Oct 2016

... once, again, I shall have to alert the "Media" ...

InkAddict

(3,387 posts)

3. Insider dumping! Grrrrr.... eom

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 04:34 PM

Oct 2016

Laurian

(2,593 posts)

4. Sen. Warren will not be happy.

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 04:38 PM

Oct 2016

longship

(40,416 posts)

5. It's curtains for you, Rocky! Curtains!

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 04:45 PM

Oct 2016

Witness!

The whole episode:

Staph

(6,253 posts)

6. It doesn't count

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:03 PM

Oct 2016

unless you're Martha Stewart!

SunSeeker

(51,724 posts)

7. Oh that would be sweet if he ended up in jail, where he belongs! nt

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:38 PM

Oct 2016

AlbertCat

(17,505 posts)

8. Don't forget!

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:44 PM

Oct 2016

It was the little banks that caused the financial crisis.

Or something....

melm00se

(4,996 posts)

9. While messy and carry the appearance of impropriety, "insiders" are allowed to sell stock

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:45 PM

Oct 2016

in their own companies but there are specific rules that surround those sales.

Like many of the SEC rules, they can be pretty arcane but the simple explanation is that an "insider" has to announce and schedule the sale of their shares far enough in advance that they (in theory) couldn't have non-public information that would influence their timing of the sale.

TexasBushwhacker

(20,219 posts)

14. So the question is, how long ago did he report his sale?

Reply to melm00se (Reply #9)

Sat Oct 15, 2016, 08:37 PM

Oct 2016

But I imagine the investigation took many months, so proving that he did something improper might be tough.

PuppyBismark

(595 posts)

10. This is the definition of Insider Trading and against the law!

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:48 PM

Oct 2016

He needs to be reported to the Securities and Exchange Commission for investigation of Insider Trading. A real low life. Clearly he has enough money to retire for a 1,000 years, what does he care?

A HERETIC I AM

(24,379 posts)

18. No actually, it isn't.

Reply to PuppyBismark (Reply #10)

Sun Oct 16, 2016, 02:35 AM

Oct 2016

He needs to be reported to the Securities and Exchange Commission for investigation of Insider Trading.

The SEC likely knew the trade was going to happen, as those are the rules.

http://www.investopedia.com/terms/r/rule-10b5-1.asp

You might not like it, you clearly don't fathom how these things work, but understand that even though it looks like shit and smells like shit, it is still perfectly legal shit.

Firestorm49

(4,037 posts)

11. No Surprise

Reply to BadGimp (Original post)

Sat Oct 15, 2016, 05:57 PM

Oct 2016

It comes as no surprise that the " former" CEO of Wells Fargo made out like a bandit prior to the fraud revelations. Since he resigned, he also probably got his mega golden parachute as well.
This country has two standards - one for the rich, and one for the rest of us poor slobs. This asshole defrauded millions of consumers by his quota directives, forcing his staff to create at any cost, more revenue for the bank. 5300 of those poor working fools got fired, probably with a bad review so as to make it even harder for them to find future employment, while this jerk CEO avoids any kind of meaningful punishment for being the perpetrator of major fraud. Had this been a small corporation, the owner would be crying his eyes out in front of a judge by now.
So, he ran up his net worth before personally forfeiting 41 million dollars in "punishment". Clever. He walks out a free man, albeit little poorer but still rich as hell, and will probably now go to Goldman Sachs and start screwing poor people all over again.
WHAT A CROCK! DEMAND EQUAL JUSTICE!