Tuesday, September 20, 2016

Warren questions Wells Fargo CEO

Too bad Warren is not the Democratic nominee for President. She wants to rightly know why he is not taking any responsibility for how his workers created false accounts and moved around client money into them without client knowledge. The workers claimed they had outrageous quotas to meet or lose their jobs. And yet the CEO claims no responsibility for the corporate culture that creates such quotas under pressure of unemployment. That's exactly where corporate culture comes from, the CEO and Board, making impossible quotas to further enrich themselves while putting the fear of starvation into their workers.

This is exactly why I retired early from my insurance underwriting job. The owners of the company, a hedge fund subsidiary, wanted rapid growth at any cost so that they could sell off the company while its numbers still looked good. As a senior underwriter I was pressured time and again to write business I knew was bad and would cost claim losses down the line. The heads of underwriting and claims both left the company before me because of this. Things then only progressed for the worse so I left shortly afterward.

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