When asked by the media1 why anyone would risk their career by engaging in the misconduct chronicled at Wells Fargo, former CEO John Stumpf voiced a frustration that is common in C-suites and boardrooms among many firms, and in most industries, worldwide: “I don’t know how to explain human behavior."
That inability cost Mr. Stumpf his job, tens of millions of dollars in punitive fines, cries of derision from the public and Congress, and a lifetime ban from the financial industry. It has cost his firm billions in fines and continuing stock price impairment vis-à-vis peers. Recently announcing a new $3 billion dollar fine and deferred prosecution agreement, US Justice Department attorneys said the case against Wells Fargo illustrated, “a complete failure of leadership2 at multiple levels within the bank.”
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