Warren Buffett blames former Wells Fargo CE in scandal
Seattle/New York — Former Wells Fargo CE John Stumpf bears blame for an incentive system that encouraged staff to set up bogus accounts and made matters worse by not fixing the problem, Warren Buffett said. Stumpf is a "very decent man" who "made a helluva mistake", the billionaire said in an interview posted on CNN’s website on Friday."And he didn’t correct it. That’s the thing." Buffett’s comments were his most extensive public remarks on the bank since it agreed in September to pay $185m to settle allegations that employees set up credit card and deposit accounts without customers’ permission. Staff have said they were encouraged by cross-selling targets to open as many accounts as possible. "It was a dumb incentive system," said Buffett, whose Berkshire Hathaway is the largest investor in Wells Fargo. "When they found out it was dumb, they didn’t do anything about it," he said. Stumpf, 63, stepped down in October and was replaced by Tim Sloan, 56, who was promoted from chief ope...
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