Who Knews?

Description “It’s hard to believe that thousands of employees could have created over a million fake accounts without anyone in senior management knowing about it.” Senator Elizabeth Warren – Democrat, Massachusetts September 2016 On September 6th, 2016, Wells Fargo Bank N.A. agreed to pay $185 million in fines and to refund customers $2.6 million in fees. The settlement related to the creation of over 2 million unauthorized accounts by Wells Fargo employees for existing bank customers. In addition to the fine paid by Wells Fargo, 5,300 employees have been fired for their involvement. Some, including Senator Warren, have begun to suggest that Wells Fargo Chief Executive Officer, John Stumpf, should resign. On October 12th, John Stumpf did in fact resign: Wells Fargo CEO John Stumpf Steps Down (Links to an external site.) Please read the article “Wells Fargo Fined $185 Million for Fraudulently Opening Accounts” that appeared in the New York Times on 9/9/2016: http://www.nytimes.com/2016/09/09/business/dealbook/wells-fargo-fined-for-years-of-harm-to-customers.html (Links to an external site.) (Links to an external site.) Using management concepts, you are to indicate "Do you think the Wells Fargo board of directors should have allowed John Stumpf to retire or should they have been more aggressive in their actions - such as a dismissal.. Why or why not?" Please note that your task is NOT to just restate the facts of the article. Instead, you are to take a position on Stumpf’s potential resignation and defend that position.