. >> john stumpf faced a lot of criticism, too. what was his main short coming? >> john was not judged to have done anything improper. what john was criticized for, and he would admit this, he acknowledges this, is that he did not press hard enough on carrie for information and to address the issue quickly enough. and he didn't change the leadership of the bank quickly enough when that wasn't getting done. and he underestimated the magnitude of the reputation risk that this involved for wells fargo. so when the reputation damage occurred, as ceo, he's the guy that was in the driver's seat. >> he didn't just fail to press fast enough, he described her as the best banker in the world. how did i get that perspective so wrong? >> well, carrie and john had great regard for carrie based on her long tenure there and her good performance. and i think what he didn't fully appreciate was the degree to which sales goals and the sales culture had become distorted in the more recent years. >> he was interviewed as part of the process of this investigation and carrie declined t

bank has said john stumpf said the former c.e.o. at capitol hill, he said, customers will be made whole, every effort will be made. it is harder for the bank in terms of the credit card process people brought up mortgages, as well. there was a ding to the credit getting better rate on mortgage can be difficult. those are things harder for the know, i've and, you been trying to talk with them and others about how to do that, difficult.ttle i think branch is fine to go in and talk to people there. sure if they didn't know about you, how to address that, but there are ways, the bank has of information on the website and that might be a better place to try, but the fees themselves, you know, they have been trying to reimburse those, but in terms of balance, i don't know if you use the card, that is harder. talked about the fact customers have been leaving wells fargo over this. what has wells fargo been doing customers and reach out to those in the wake of this investigation? right. so wells fargo has actually had two different campaign

john stumpf, the former ceo, was her boss directly.through all those mergers and had been slow, this report found, to fire her and had not really given us guidance at that time. julie: she is essentially saying no, that's not the case. issue saying she didn't know what's going on? the report alleged that she turned a blind eye or that she was actively aware of some of these abuses that were happening? laura: really that she was aware of these things. the report actually specified meeting inpecific which you withheld how many people were actually terminated for all these practices over the years. later the board found out when the allegations came out with the cfp be that there were about 5300 people fired. they were told it was only between 200 and 300. there's a big difference. invest gators found anyway that it did not allow the board to have enough visibility into what was really happening. they kind of blamed her for that. what we got from her lawyer was very short. he did not participate in these investigations and did not fit for

at that point, she started to report to him, and instead of john stumpf. takes credit to end her tenure, something the board failed to do before that. in terms of other senior executives as we know, she and stumpf very much in the spotlight, tolstedt found to be improperly acting and terminated for cause, and stumpf did not go that far. the board, as a whole, getting a pass as well. >> curious, i'm curious, the chairman of wells fargo told you they could have claw back more, but chose what they did. what they were clawing back is 24% of the compensation during that five year period when they had these aggressive sales campaigns going on there was that a formula what it remitted or how did they get the amount? >> we pushed on that, 24% of a six-year period. 286 million received over that period and gave up 24% of the period. that feels like a relatively small amount as you suggested. that particular giveback today in april was an award in 2016, and it was after most of these conclusions had been now reached retroactively, but, no, all the chairman said was

wells fargo's board announced monday it took back $75 million from the former ceo john stumpf and formerls community banks. it said stumpf was too slow to investigate the tactics. $75 million. think of all that money they made over those years when the scandal was going on. >>> the situation in north korea is escalating. that country issuing a blistering statement against the u.s. warning it is ready to retaliation against any aggression. we'll go there next. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com. la quinta presents, how to win at business. step one: ask the presenter to "go back a slide." well played. you just tossed a mind grenade into into your colleagues' dulled senses. look at them, "what did i miss?" he one-upped me once again. step two: choose la quinta. and your la quinta reward points can be redeemed for everyday purchases on the go so you can win at business. learn more at lq.com today. could bounce back like it used to? neutrogena®

characters called the best banker in america by her boss, former ceo john stumpf. and an internal investigation released monday also blame stump for failing to realize the severity of the situation. billions spending $1.3 in its kentucky plant as part of a $10 billion investment over the next five years. the move comes amid uncertainty over looming u.s. trade policies that could influence foreign carmaker production plans. earlier u.s. president donald trump threatened to impose a hefty fee for markets in mexico. at&t is buying straight path communications and a one point two $5 billion stock deal. in january it agrees to pay the federal communications commission $15 billion for falsifying data. and the italian aerospace company audio began trading on the exchange for the first time monday. they have been called the competent answer to spacex. the first private space launch company to trade its shares on an open exchange. for the business report, buying a work of art is relatively common but it is not often you get to own a street art taken from the street. and rar

a new internal report blames wells fargo ceo, john stumpf, and others for pushing unrealistic steals goals. the boarder director says they didn't do enough to address the culture at the bank leading employees to open 2 million fake accounts. wells fargo is facing $185 million in fines. >>> perfect day for baseball and even better for the giants home opener, kpix 5 sports director, dennis o'donnell is at at&t. how did it go? >> reporter: well, they survived the scare and bon a baseball game, giants were 2 and 5 limping home into the home opener while arizona was 6 and 1 and they were scoring almost 7 run as game. lets get to it. this afternoon at&t before the game, the team honored ryan owens, long-time giants fan and navy seal who was killed during a mission in yemen last january. following an emotional tribute to ryan, his wife, karen, and three children threw out the first pitch and received a standing ovation. as for the game, this is the scary moment i was talking about on the first arizona, walker hits posy in the side of a head with a 94 miles an hour fastball. he would leave t

the board will scale back more pay from john stumpf and $37 million from carrie tolstedt. sit down with wilford fork today at 11:00 eastern time. >>> intrawest is being bought for $1.5 billion. the buyout price is less than where intrawest closed on friday but the stock has soared over the past three months since it was first reported that intrawest was exploring a sale. >> now let's talk some politics. president trump considering his next steps on both syria and china and secretary of state rex tillerson taking his first diplomatic trip to russia this week. joining us now to talk about all of it, p.j. crowley former assistant secretary of state during the obama administration. good morning to you. he's also the author of "red line: american foreign policy in a time of fractured politics and failing states." let's first talk about syria, president trump's reaction, and what you think should come next. >> well i think it was the right thing to do. it re-established some boundaries in terms of the conflict in syria. but it doesn't necessarily change the reality -- the sad re

scandal that deemed it necessary to claim back an additional $28 million of pay from former ceo john stumpf after he agreed to forgo $41 million when he retired. an additional $47 million from kerry tollstead. she already having foregone $19 million last september. tolstead was also terminated retroactively for cause. here is chairman steve sanger. >> the root cause of the practices issue determined by the investigation, was the excessive sales pressure in the community bank, the excessive sales goals, and the failure to escalate the problem appropriately through the structure of the community bank. kerri is the leader of the community bank, is responsible for all that. >> tolstead refused to be interviewed as part of the board review. a statement from her lawyer said we strongly disagree with the report to lay blame with miss tolstead. tim sloan is given a pass. the report said that his direct involvement with the sales practices issue was limited, until he became president and coo in november 2015. despite that, i asked him if there could have been more he could have done earlier. >> in h

to takempted the board back millions of dollars from john stumpf.hat is the latest bloomberg business flash. vonnie: while much of the spotlight remains on the fed's massive balance sheet, there is one foreign threat. we will tell you what that is next. this is bloomberg. ♪ mark: this is "bloomberg markets." to the bonding out markets. it seems like everyone is assessed with what will happen when the fed will start to unwind the massive balance sheet but there is a development that could draw demand away from u.s. treasuries at the wrong time. joining us now to discuss that is brian chappatta. the treasury market is owned by foreign investors. this is what we should be focused on? brian: that's right. it is almost half. this is a pretty big chunk of the market that foreigners hold. and the issue is that the negative yielding bonds that we were obsessed with in july last year, suddenly that amount is shrinking. and i know it is like a 0% healed which seems arbitrary but for a lot of investors, that is the breaking point. if they invest below breaking

also had john stumpf, the former ceo, her boss directly.e had been slow to fire her and did not give enough guidance at that time. else are the additional consequences today? back $40oted to call million. in terms of other firings, the board found earlier in this investigation, they did fire for people, some were deputies, others worked in the bank less strictly. >> federal reserve chairman janet yellen said the fed is no longer putting the pedal to the metal but has shifted to gains in growth. >> what we want to make sure of is that we sustain the progress that we have achieved, and that the appropriate stance of policy now is something closer to what we call neutral. >> does the story matter? they tell us it is not timing, it is the removing of accommodation. does it count? >> a does count when you get into the markets. the set is still accommodating, putting stimulation into the economy, just less of it. what we should start to see as time goes on, the effect in the markets of rising interest rates stockss juice for the market. we have n

they also had john stumpf, the former ceo, her boss directly.had been slow to fire her and did not give enough guidance at that time. >> what else are the additional consequences today? or is that it for now? >> in terms of compensation, they also voted on friday to call back $40 million in compensation from her. in terms of other firings, the board found earlier in this investigation, they did fire for four people. some were deputies, others worked in the regional banks, less strictly under her. >> federal reserve chairman janet yellen spoke at the university of michigan and said the fed is no longer putting the pedal to the metal but has shifted to gains in growth. >> what we want to make sure of is that we sustain the progress that we have achieved, and that the appropriate stance of policy now is something closer to what we call neutral. >> does the story matter? they tell us it is not tightening. it is the removing of accommodation. do the words count? >> they do count when you get into the markets. the fed is still accommodative. it is sti

yesterday morning's board review in the sales practice scandal which was critical of former ceo john stumpfor failing to realize the miss ggivings of carrie tolstedt, i asked tim sloan how it was that he came to the decision to end her tenure. >> i worked with her on some things that i had asked her to improve on. and we just came to the conclusion within a few months that it made sense for her to move on. and what i saw was an executive that while having a successful career had some challenges in terms of working with others. had so the dealt as aggressively with some sales practices issues as she should have. >> though the board review gave sloan a relative pass relating to the saga, i asked if he could have done more sooner. >> when i look back, i should have and could have done some things differently once the issues made its way to the corporate leadership level. and in hindsight i wish we would have moved more quickly. we would have made decisions, for example, that we made last fall, which was to end the incentive compensation plan in the community bank. >> finally we asked whether t

practice scandal that deemed it necessary to claim back additional $28 million of pay from former ceo john stumpf after he had already agreed to forgo $41 million when he resigned in october of 2016 and an additional 47 million from carry tolstedt, she had already forgone 19 million last september. to tolstedt was also terminated retroactively for cause. >> the root cause of the sales practices issue, as determined by the investigation, was the excessive sales pressure in community bank, the excessive sales goals, and the failure to escalate the problem appropriately through the structure of the community bank. carrie as the leader of the community bank is responsible for that. >> tolstedt refused to be interviewed but a statement from her lawyer says we strongly disagree with the report and the attempt to lay blame with ms. tolstedt, current ceo tim sloan is given a pass. the report says 'tis direct involvement with the sales practice issue was limited until he became president and coo in november of 2015. despite that i asked him if there was more he could have done earlier. >> when i looked ba

the banks board issued a scathing report accusing former ceo john stumpf of dragging their feet for yearscomplaints that the bank promoted a toxic culture. the board is already recovering $60 million from stumf and tollstead recommending an additional $75 million for negligence and poor management. that would be the largest so- called clawback at wall street history. >>> a big honor for bay area newspapers, which won the pulitzer prize today for their coverage of the ghost ship warehouse fire in oakland. staffers at the east bay times gathered to celebrator their achievement -- celebrate their achievement today. the paper also took time to tell them there are about each of the 36 people who lost their lives. >> it is a horrible tragedy. we can't lose sight of that even though we have won this prestigious award. we are all aware of it, 36 families who have lost their family of the loved ones. >> and the paper said their staffers were motivated to track down the reasons for the deadly fire and they hope a similar tragedy would never happen again. >>> still ahead tonight a bay area man accus

john stumpf and community bank executive carrie tolstedt stocks finished flat on wall street today. dow jones industrial average gained nearly two points to close at 20,658. the nasdaq rose three points, and the s&p 500 added more than a point. the 2017 pulitzer prize winners were announced today in new york. author colson whitehead won the prize for fiction, for his book, "the underground railroad." david fahrenthold of "the washington post" won in the "national reporting" category for investigating president trump's philanthropy claims. and the "breaking news reporting" prize went to the "east bay times" in california, for its coverage of last year's deadly oakland warehouse fire. and, spain's sergio garcia has ended his golf major drought. the 37-year-old won the coveted green jacket at "the masters" last night. garcia rallied to beat englishman justin rose on the first hole of a sudden death playoff. it comes 18 years after he joined the professional golf tour. still to come on the newshour: i sit down with former chairman of the joint chiefs of staff mike mullen to discuss the

millions of dollars in bonuses from former ceo john stumpf, who led the bank during the time wells fargo tricked millions of customers into signing up for accounts they did not want or in many cases didn't even know they had. stumpf retired as the scandal broke. a news release says wells fargo is recalling $69 million from trump. >> futures call for a good open on the market. investors still enthusiastic despite friday's shocker of a jobs report, showing less than half the jobs created than experts expected. so few in fact, doesn't cover the number of 18-year-olds entering the job market for the month. the dow fell just six points on friday. take a moment, lift your morning mug of coffee to salute this man. this is neal hunt, i know you don't have any nide who he is, but he's the guy who more or less invented netflix streaming. he took the company from dvds to show you use netflix now. he's leaving netflix after nearly 20 years. the company hasn't said why, but now he has free time. maybe he can go to today's home opener at at&t park. >> the giants trying out new tech. their headphones f

wells fargo former ceo john stumpf, and the former head of community banking carrie tolstedt are forced to return a combined $75 million in pay, making it the largest clawback in u.s. banking history. wells fargo has fired a staggeringng 5300 lolow-level workers over the creation of the fake accounts. people nationwide also continue to protest wells fargo over its role in funding the $3.8 billion dakota access pipeline. united airlines is facing widespread criticism after video surfaced of a doctor being forcibly dragged off a plane by security officers on after united overbooked the sunday flight and then demanded some passengers disembark. when no one volunteered, they chose four people to get off the flight. the 69-yeaear-oldan was selelecd to be forcrced off the plane. he protesteted, saying he was a dodoctor whoho needed to b be ae hospital in kentucucky the following morning. "the washington post" reportsts fellow passengers that he said more or less, i'm being selected because i am chinese. multiple chicago department of aviation security officers then began dragging him through

offense, trying to root out the identity of a whistleblower. , $28 millionoard from former ceo john stumpfe bogus customer account scandal and even more from one of his deputies. we are on with bloomberg's bank editor michael moore. first, let's talk about what jeff daly will lose. we talked about a significant pay cut, how significant is it in comparison to the clawback we saw at wells fargo from those two executives? fargo one iswells in a different league at this point. jeff daly was given a $1.3 million pound bonus last year and some portion, even all of that could be taken away. the bank is going to wait and fca comes up with before deciding how much of that bonus to take back. guy: where does this leave bank ceos? weare in a place now where saw a huge rotation of bank ceos, a lot of bank ceos seeing clawbacks. they are in a different place right now. what is their motivation? their motivation changed as a result of what the regulators are doing? michael: i think it has and you have seen, because you have this sort of change and new generation of ceos come in, there certainly is a mor

fargo, share over that account scandal resulting and a $185 million settlement and resignation of john stumpfhe u.s., they reported sluggish economic start to the aar, analysts forecasting 1.2% rise in gdp in the first three months when it releases first-quarter numbers on friday. this will be our first look at these numbers. bring up this chart that shows you historically has a signaled by these yellow circles that the first quarter of most years in have been softer than the rest of the quarters, and there are a couple of reasons. one might be that we are coming off seasonal highs in the prior quarter. it is also the winter months, therefore that first-quarter tens to be a little bit more sluggish, so i don't want to say it is a throw quarter, but there is a big asterisk every time that number comes out. likely to be something the markets will die just to see whether or not there is in fact any justification for more rate hikes this year. right, and we have talked about the gdp figures and janet yellen as welker at she said the first quarter numbers are pretty noisy. of course, alliance to l

wells fargo's board of director has opted to take back 28- million dollars from former c-e-o john stumpfstumpf was too slow in investigating the bank's sales tactics. it also took 47- million from former community bank chief- carrie tolstedt.. for refusing to change the bank's sales model. in total.... wells fargo senior executives are returning 180- million dollars in pay. last year ... wells fargo admitted that its employees created millions of unauthorized customer accounts .. in order to reach unrealistic sales goals. ( vicki ) new york has become the first state to offer free tuition for in state students, but there is a catch. while they can go to state schools, they will have to pick up the costs if they decide to live on campus. and there is one more thing. the students must remain in state following graduation for the same number of years they received funding. if they leave, they have to be repay the state in the form of a loan. only students from families whose income is no more than 125- thousand are eligible. you may recall, the city college of san francisco will state offer

as we are seeing from the report, a lot of actions being taken on former ceo john stumpf.d, carried still had, clawing more money from her as well. alix: how much of a black eye is this for banks in the u.s.? gina: broader banks are trading away from this issue at this point. it is more of what is happening with the yields curve. alix: i'm talking more about the overhang of scandal and overhang of that payment. gina: i think the sector has contended with it for so long that it's another bullet point in a long list of bullet points for the banks. i don't want to minimize the issue at all, but when you look is traded,sector wells fargo underperformed on issue, but the sector at large didn't. the sector at large bounceback regular t relatively quickly. there are other issues driving bank performance. for banks specifically involved in a scandal or headline risk, it's an issue, but for the sector at large, i'm not sure that's what's driving trading. alix: think you so much, laura keller for wrapping that it. if you have bloomberg terminal, check out tv . interact with us d

board into the sales practice scandal has deemed it necessary to get back $25 million of pay from john stumpf he agreed to forego $40 million when he resigned in 2016. cork to data from equilar, the total pay was $286 million. so he's handed back around 24% of that amount. stumpf was made aware of the systemic nature of the sales practices from 2012 but he was first aware of specific cases as early as 2002. yet, he didn't initiate any follow-up investigation or inquiry until 2015. moving on, one of the main issues levelled his way was his inability to criticize carrie tolstedt who he once praised as being the best banker in america. the review singles out tolstedt for far more criticism than anyone else. tolstedt resisted change to the community bank sales model even when confronted with evidence that it led to low quality sales and improper sales programs. instead, she reinforced the high pressure sales culture. thus tolstedt has been terminated retroactivity for cause and giving up $47 million of pay, having already forgone $19 million in september of last year. tolstedt's total pay over th

that resulted in the resignation of john stumpf. leslie picker has more. >> reporter: i'm told votes are still being tallied. we are told, this is according to a person familiar with the matter, that several directors are actually close to that 50% threshold. anything below that 50% threshold would cause them to need to submit resignations. wells fargo clawed back hundreds of millions of dollars. they had hundreds of millions of dollars worth of settlements. executives have resigned but some share holders want more flesh, and the influential proxy advisory firm such as iss are urging shareholders to vote against 12 out of 15 of the directors, including the chairman, steven sanger. this is extremely rare. in the last five years iss has done this seven over times. in this type of situation where there's no shareholder putting up a competing slate, their sway, the proxy advisory firms sway can be more powerful. that's what one proxy solicitor told me. >> my sense is that management and the board are treating the recommendations serious

result, it wants to claw back 75 million dollars from two former executives, there is one of them john stumpfearnings season getting under way this week the major barngs reporting earnings today all week j.p. morgan ci group wells fargo on docket markets up dow industrials up about 12 points, it has been a flat morning in terms of performance, and a flat showing in europe as well take a look at indices ft 100 down three points dax index town 12 points cac quarante worse down one and a half 1% 25 points lower, asia overnight the one winner was japan, nikkei average up 3/4 of one percent others lower to flat on session. 2017 masters in the books, check it out. >> whoa, a nailbiter until tend sergio garcia winning first ever major tourney during 18-year career highlights from augusta this morning, then mickey and minnie meet terminator disney's plan for hug biohuman annoid robot in the park. going to disneyland. >> president trump's stance against assad regime chemical weapons attack senator lindsey graham praised the decision watch this. >> i have never be bebeen encouraged i am glad trump did

newly-released internal report, pinned most of the blame of the scandal on former chief executive john stumpf and carrie tolstedt. aggressive sales management that created pressure on employees to sell unwanted or unneeded products to customers. last year, wells fargo acknowledged its employees opened up 2 million checking and credit card accounts without authorization to meet sales goals. >> it was very frustrating. these are accounts i never opened. >> reporter: the bank agreed to pay $185 million in fines and said it had fired 5,300 employees. >> we recognize now that we should have done more sooner. >> reporter: in september, stumpf was grilled by congress. >> your definition of accountable is to push the blame to your low-level employees who don't have the money for a fancy p.r. firm to defend themselves. it's gutless leadership. >> reporter: tolstedt's attorneys released this statement. "we strongly disagree with the report and its attempt to lay blame with ms. tolstedt. a full and will fair examination of the facts will produce a different conclusion." >> we have more work to do in reb

the initial days leading, of course, eventually to the scalp of the ceo and chairman at the time john stumpfthink is possible for united? is oscar munoz's place under threat? >> look, one of the first things that happens in a crisis is somebody dives in front of a camera and says the thing that has to happen here is the ceo has to resign. that's absolutely nonsense. i think the idea that in every crisis you have to sacrifice a virgin in the volcano to appease the gods is really a ridiculous thing. the truth is, is that a lot of the ceos, and the teams that are managing a crisis are the right team to stay on and resolve it. and firing people just to appease short-term anger accomplishes absolutely nothing. >> but you don't think, eric -- >> a lot of business from companies today? >> you don't think if he had come out within 24 hours and said, wow, i looked at that, and i was horrified. i couldn't believe it happened on my airline. and i'm going to figure out why it happened on my airline and i'm going to figure out how it never happens again on my airline. you're all right to be just as horri