Wells Fargo sales scandal points to industry-wide problem

Wells Fargo’s independent directors are punishing two top executives after the bank’s scandal over sales practices. Chairman and CEO John Stumpf is forfeiting $41 million dollars in stock awards and will forgo his salary during the investigation. Former executive Carrie Tolstedt, who oversaw retail banking during the scandal, is also forfeiting $19 million in stock awards, and both will not collect their bonuses this year.

The clawbacks follow revelations that Wells Fargo employees opened about two million unauthorized accounts in customers’ names to meet lofty sales targets.

Wells Fargo fired more than 5,000 bank employees for opening the sham accounts, and there’s now a class action lawsuit in California on behalf of workers who claim the bank fired or demoted them, for not bending the rules to hit those aggressive sales targets. But this is a catch-22 that employees at other banks say they’ve also experienced, reports CBS News correspondent Omar Villafranca.

Read the rest at CBS News.