I received a few inquiries today on my thoughts about the current debacle unfolding at Wells Fargo™ and in-particular, their now embattled CEO John Stumpf. I thought I’d share them with you for you never know if they’ll be run or not. And I know some of you just like to know. So here was my reply:
Question: What is your current thought pertaining to Mr. Stumpf and his appearance today before congress?
Me: His appearance today will probably be seen as much worse than his first, if that’s even possible. The reason for that is two-fold. First: He did himself absolutely no favors in his first appearance for it seemed all he did was try to hide behind some form of Human Resource inspired gobbledygook. It was both painful, as well as pathetic to watch.
A CEO, any CEO in my opinion, that does not have the moral footing as to come out and denounce such revelations both vociferously, as well as, having (or at least insinuating) the moral standing as to denounce these revelations with forceful, and believable righteous indignation, does nothing more than show themselves to have been nothing other than a “Don’t ask question, if it’s not hurting the bottom line” facilitator.
If he takes to the congress today resembling or stating anything like that as he did last week? Regardless of how much they have said will now be clawed back from him and others? The congress will be looking for not only his head but probably quite more.
The panel will be far more prepared to go after him for they know there’s “blood in the water.” The problem for Mr. Stumpf is: it is his – not some underling’s further down the chain of command. It’s quite possible like many times in history where one’s name can suddenly become a moniker. For the offense is so large it not only marks that single event, but marks where others (“others” being further banking allegations or investigations toward others) may follow. e..g., A Minsky Moment. The Madoff Moment, and now, quite possibly The Stumpf Moment, but we shall see.
Question: Are you saying you think this is the beginning of something larger?
As much as I don’t like the idea of private businesses being called before politicians in an open forum where allegations and more can be thrown about resembling kangaroo court antics. The banks as well as their CEO’s have pretty much brought this all upon themselves with the bailouts and more resulting in the 2008 financial crisis. In effect the banks pretty much abdicated their “private” entity when they decided as to accept more congressional intervention or oversight since. And for one of the largest banks to be caught red-handed in a scandal such as this? All I can say is: How foolish can you be? Oh wait they answered that, didn’t they?
Question: Thanks for your responses.
Me: You’re welcome.
© 2016 Mark St.Cyr