Copyright © 2020 CBS Interactive Inc. All rights reserved. Analysts and congressional leaders called for the bank to claw back Tolstedt’s compensation, but Wells Fargo's board members refused. 1 spot this year on U.S. Banker magazine's list of … Ms. Tolstedt is the individual described as “Executive A” whom the Justice Department singled out in a document detailing its evidence against the San Francisco-based lender in February, one of the sources said. The football game that explains everything. , head of Wells Fargo’s community banking division from 2007 to 2016, when the abusive sales practices and unauthorized accounts scandal reached their zenith. She said the experience also drilled in her the importance of constantly checking that customers are happy. Rounding out the top 10 are Mary Callahan Erdoes, the CEO of JPMorgan Asset Management; Cara Heiden, co-president of Wells Fargo Home Mortgage; Peyton Patterson, chairman and CEO of NewAlliance Bancshares Inc.; Julie Monaco, North American managing director of Citigroup Inc.'s global transaction services business; and Donna Demaio, chairman, president and CEO of MetLife Inc.'s bank unit. Carrie didn't know for sure but she knew how to move things. “They treated him with respect.”. The branches, she enthused in one interview, were laboratories for experimenting. “So you never ever want to let your customer down.”. View the profiles of professionals named "Tolstedt" on LinkedIn. 4. For example, “hurricane” & “loss”. From: Independent Directors of the Board of Wells Fargo & Company Sales Practices Investigation Report, April 10, 2017 (page 7). She could make people dress in costumes and "run the gauntlet" to whiteboards whenever they sold a solution. In its charges, the OCC said Tolstedt was “directly and significantly” responsible for the business model that incentivized the misconduct. In 2017, Wells Fargo retroactively fired Tolstedt for cause. This will limit your search to that combination of words. Now the Board has the nerve to decry aggressive sales goals and cross-sells as if they're something bad, calling her "obsessed with control", "insular and defensive" and mentioning her name in their report 142 times. The development marks a rare instance of a senior bank executive facing criminal inquiry as a result of their job. The rule has faced a host of criticism from investors, environmentalists, asset managers and others. The Justice Department’s statement of facts paints an unflattering picture of Carrie Tolstedt, head of Wells Fargo’s community banking division from 2007 to 2016, when the abusive sales practices and unauthorized accounts scandal reached their zenith. She didn't flaunt her wealth and worked hard, like her father worked. Watching her own father at work, Tolstedt told U.S. Banker magazine, she came to appreciate the difficulties of running a small business, how owners have to juggle finance and marketing and so many other tasks at once. Stumpf knew Carrie produced results and wasn't terribly interested to find out how she did it. If there's one unifying quality among the group, it's their desire to help other women achieve great things, Kline said. Wells doubled its branches in recent years, increasing the opportunities for cross-selling ideas to spread across the company, including bad ones like opening accounts for customers without their approval. , Tolstedt was with Wells Fargo for 27 years during which she led the effort to build out a massive branch network after Wells Fargo took over Wachovia. "It's pretty clear that mentoring is pretty important, to make sure that these women who show a lot of promise don't fall off their career path," he said. Hub taps former Gallagher exec for health care specialty role, 5. © 2017 The Associated Press. Carrie grew up in Kimball Nebraska, the daughter of a baker. She would earn numerous awards, draw praise for blazing a path for other women and take home millions a year before a sales scandal at the bank threw those accomplishments into damaging light. 7 last year. To search specifically for more than one word, put the search term in quotation marks. Even with those challenges, rep productivity and client cash balances expanded in the third quarter. Tolstedt's title is somewhat misleading, Kline said. That’s where Wells Fargo failed. Carrie's Community Banking created half of Wells Fargo's sales and profit helping make Wells Fargo the most valuable bank on Earth. Most policyholders see rates hikes across multiple lines: Report, 6. Overseeing more than 100,000 employees and 6,000 branches that Wells Fargo called "stores" like they were Victoria's Secret outlets selling solutions to sexiness rather than custodians of trust, Carrie used rankings and scorecards to motivate managers who "lived and died" by their numbers. “Executive A” helped cultivate a high-pressure sales culture, in which "onerous" sales goals led thousands of employees to engage in unlawful and unethical conduct, they wrote. Carrie Tolstedt, Wells Fargo & Co.'s senior executive vice president for community banking, has been awarded the No. I keep coming back to that accusation — that Tolstedt and others blew smoke up the board’s backside, so corporate directors wouldn’t give sufficient scrutiny to what was really happening at the bank — because I hear that complaint from compliance and audit professionals all the time. And therefore it couldn’t maintain the proper balance over that fundamental tension we mentioned earlier, between lofty ethical values on one side and grubby business practices on the other. , we looked at flaws in the bank’s strategy that slowly, inexorably peeled company behavior away from its values and mission statement. Ms. Mainigi has previously said that Ms. Tolstedt acted “appropriately and in good faith at all times.”, “Throughout her career, Ms. Tolstedt acted with the utmost integrity and concern for doing the right thing,” she said in January in response to the OCC’s charges. Carrie didn't do it for the money. Ms. Tolstedt and Enu Mainigi, Ms. Tolstedt's counsel at Williams & Connolly LLP, did not respond to several requests for comment about the criminal inquiry. Tolstedt will also speak at the event, along with Lifetime Achievement honorees Yasmin Bates-Brown, former executive vice president of community affairs and economic development at Bank of Montreal's Harris Bank in Chicago and Diane Thormodsgard, former vice chairman and head of wealth and securities services at U.S. Bancorp. Carrie Tolstedt ran Wells Fargo's Community Banking division like it was her own. A Nebraska market manager came up with a “sales road map,” a cheat sheet of what order to pitch accounts and services to increase the likelihood that customers would sign up. The determination to do it, and to make doing it a priority, comes from savvy board directors and CEOs who have a strong ethical backbone and a nose for management baloney. degree in business administration and completed the Pacific Coast Banking School, University of Washington. Lease agreements would sit for months on her desk awaiting her scrutiny yet she never delved into the messy details of tellers' lives. The women on the 2010 list are noteworthy not only for their prominent roles within the financial services industry, but also for their commitment to mentoring. (Reuters) — U.S. prosecutors are investigating the former head of Wells Fargo & Co’s community banking division for her role in the lender’s product mis-selling scandal, two sources said. Prosecutors had been probing Ms. Tolstedt as one among a short list of people with a view to bringing criminal charges, the sources said. Her father ran the local bakery, and she would join him on his visits to the local bank after a day’s work. And experiment they did and to great success -- for a while at least. In December of 1998, she became regional president for Central California for Wells Fargo & Company after the merger of Norwest Corporation and Wells Fargo. They didn't try to cross-sell him eight solutions because eight is great. The report released Monday by the bank’s board of directors accused Tolstedt of downplaying problems at the branches and bucking at scrutiny over fraudulent sales practices under her aegis. In mid-2002, she became head of regional banking which included the retail segment across Wells Fargo’s 23-state footprint, small business and business banking. In his grilling before Congress last year before he stepped down in disgrace, Stumpf said he was “deeply sorry” the bank didn’t act sooner to stem the misconduct. Read the John Lothian Newsletter. We can say the same for everyone else at Wells Fargo charged by the OCC: the bank’s former general counsel and former chief auditor; plus the former chief risk officer and executive auditor for the community bank division that Tolstedt ran. Carrie Tolstedt, Wells Fargo & Co.'s senior executive vice president for community banking, has been awarded the No. ICE Limitations. In our first post about Wells Fargo earlier this week, we looked at flaws in the bank’s strategy that slowly, inexorably peeled company behavior away from its values and mission statement. We can dive into the specific allegations against Wells Fargo executives some other day, and frankly, the specifics of how a mega-bank misleads its customers and investors might not be applicable to your company and its own travails. Wells Fargo will clawback millions from former CEO John Stumpf and Carrie Tolstedt. The tension between desire for growth and ethical business conduct, on the other hand — that’s universal. To the end, Stumpf was full of compliments for her. Tolstedt Architects | 17 followers on LinkedIn | Tolstedt Architects is a client oriented architecture firm specializing in commercial architecture, planning and custom residential. Learn how to hone your skills here. Tolstedt left Wells Fargo in 2016 just before regulators took their first big sanction against the bank, and the Office of the Comptroller of the Currency filed civil charges against her in January. As for firing Tolstedt, though, he said he never even considered it. "From: "Wells Fargo's pressure-cooker sales culture comes at a cost" Los Angeles Times December 21, 2013. Today we continue to examine the misconduct at Wells Fargo by examining the failures of leadership that allowed its unauthorized accounts scandal to happen. But your programs are only instruments to get that job done. She could move employees to drink hand sanitizer, solicit accounts outside blood banks and continue to "dial for dollars" after a robbery with police swarming around a thwarted bank robber who just "crapped his pants". John Stumpf loved the cross-sell. The prosecution of Wells Fargo executives who oversaw the bank’s activities is seen by lawmakers and investors as one of the final pieces of the scandal’s fallout for the bank. Her upbringing in Kimball, Nebraska, was prized at a bank that sees itself as more Main Street than Wall Street and long run by executives with similarly modest, small-town roots. The OCC accuses all four of acting hapless, helpless, complicit, or all three; as Tolstedt kept up the pressure for impossibly high sales goals that drove so many employees to abusive sales practices. Powered and implemented by FactSet. Tolstedt, one of five former Wells executives facing civil charges in connection with the bank’s phony-accounts scandal, could be fined as much as $25 million. There are 50+ professionals named "Tolstedt", who use LinkedIn to exchange information, ideas, and opportunities. Carrie L. Tolstedt is the former senior executive vice-president of community banking for Wells Fargo & Co. She began in that position in June 2007 and resigned from the company in July of 2016. The 'LA issue' was a distraction, but Carrie knew she could manage around it if she remained safe inside the fortress of Community Banking with John Stumpf on her side. In May of 1998, after leaving to work for FirstMerit Corporation (May 1995-May 1998), she rejoined Norwest Corporation.. Be in the know. If you are not familiar with these principles, here are some quick tips. The report is a stunning rebuke for an executive who had received nothing but praise from the bank until recently. The executive also ignored repeated complaints about the practices, prosecutors wrote. This material may not be published, broadcast, rewritten, or redistributed.
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