Wells Fargo CEO John G. Stumpf is a GMF
Take the Free Bailout Money and Give Yourself a Raise - Business as Usual
Do you know what an Acronym is?
It’s kind of like an abbreviation, but with a little more emphasis on the first components. For example CEO is an acronym for Chief Executive Officer.
Now what is a GMF? Think you know? Well lets just hope that Hubpages lets me exercise my first amendment right to freedom of speech in the form of an Acronym.
You probably already figured out the G stands for “Greedy”… and I’ll give you a hint about the “F”… then you will probably be able to put the rest together.
The “F” kind of rhymes with TRUCKER!
Wells Fargo received 25 Billion Dollars in Bailout money. They claimed they didn’t want the money but they took it. And then what did they do with the money? They used it to acquire Wachovia. They have not paid any of the money back, but they have once again increased executive pay. Why not? Steal from the tax payer legally while you can! But only the select few privileged bankers get to steal legally.
Follow along with me now from these Excerpts from CNN Money
Wells Fargo reports record profits
West Coast banking giant rakes in $3.2 billion in the latest quarter, nearly double what it made just a year ago.
"Third quarter results again illustrated the company's ability to profitably grow, even through the downward cycle despite elevated credit losses," said Howard Atkins, Wells Fargo's chief financial officer in a statement.” – Editors note: Howard Atkins is a GMF!
Still, some analysts worried that the bank was hardly keeping up with the pace at which loans were deteriorating. During the quarter, the number of loans in which Wells was not collecting interest or principal payments climbed 28% to $23.5 billion from the previous quarter.
"For two consecutive quarters, they have been using their reserves they put up at the end of last year as a kind of ATM to report earnings," said Thomas Mitchell, an analyst who covers the company for Miller Tabak.
Mortgage banking income nearly quadrupled from a year ago, to $3.1 billion.
"They had blow-out mortgage earnings for the second-straight quarter," said Mitchell.
Still, the company did not mention any plans to repay $25 billion in taxpayer aid it received last fall as part of the Troubled Asset Relief Program, or TARP.
Wells has been portrayed by analysts as one of the healthiest of the large banks. Last month, chief executive officer John Stumpf indicated that Wells intended to pay back TARP money "shortly", adding that it would be done in a "shareholder-friendly way."
Of course it does. It’s free money… first we have to figure out how to increase our pay at the expense of the American Public! Sorry I was interpreting that statement for the benefit of people who don’t understand how GMF’s operate.
You don’t think John Stumpf is going to pay the money back without first taking a bigger piece for himself do you?
Wells Fargo Press Release August 6th 2009
Editors Note: Notice how this press release precedes the quarterly profit statement… full steam ahead raises for the executives regardless.
=============== Press Release Start ======================
SAN FRANCISCO — August 6, 2009
Wells Fargo & Company’s (NYSE: WFC) Board of Directors approved increases in the 2009 annual base salaries of President and CEO John G. Stumpf and three other executive officers. These increases will result in total annual compensation close to the average pay for similar executive roles at peer group companies and are payable, after taxes and other withholding, entirely in Company stock which the executives cannot sell until Wells Fargo repays the U.S. Treasury’s Capital Purchase Program (CPP) investment in the Company.
The cash salary for Stumpf will remain at $900,000 and he will receive an annual salary in stock of $4,700,000. Stumpf received a grant of 108,528 restricted share rights (RSRs), which will begin to vest in 2011, also subject to prior repayment of CPP funds by the Company. Upon vesting, each RSR will entitle him to one share of stock. The Board also approved increases in 2009 annual salaries in stock for:
- Dave Hoyt, senior executive vice president (SEVP) and head of Wholesale Banking, of $3,166,667, with his cash salary remaining at $700,000;
- Mark Oman, SEVP and head of Home and Consumer Finance, of $3,266,667, with his cash salary remaining at $600,000; and
- Howard Atkins, SEVP and chief financial officer, of $2,639,156, with his cash salary remaining at $700,000.
The Board took these actions after considering recent U.S. Treasury guidance; the developing pay practices at Wells Fargo’s peers (10 large publicly traded financial services companies); the Company's consistent ability to grow revenue, market share, net income and profitability over the short and long term; and the need for these executives’ continued leadership while integrating Wachovia into Wells Fargo and directing the Company through the economic recession and beyond.
“We believe Wells Fargo’s leadership team is the finest in financial services,” said Steve Sanger, Chair of the Human Resources Committee (HRC) of Wells Fargo’s Board and retired chairman and CEO of General Mills, Inc. “They’re leading the Company through the largest merger integration in U.S. banking history, and earned record profits in the first two quarters of 2009, despite the challenging economy. This is something no other financial company is achieving and few, if any, companies in any industry are achieving. Wells Fargo’s compensation philosophy has always been to pay competitively, to reward performance relative to its peer group and to align management’s interests with those of our shareholders. We must balance the need to appropriately pay and retain our top performing team members with the responsibility we have as a recipient of an investment from the U.S. Treasury on behalf of U.S. taxpayers. We believe that these increases in compensation adhere to both the letter and spirit of the new executive compensation rules that apply to companies that received a U.S. Treasury investment.”
The Board’s actions will set the total compensation for these executives close to the average pay for similar executives at Wells Fargo’s peers, even though the Company’s growth in revenue, market share, net income and profitability have been consistently at or near the top of its peer group. In February 2009, the HRC did not award stock options to any executive named in Wells Fargo’s proxy statement because of restrictions on such awards for the Company as a recipient of a CPP investment, and did not take any compensation actions for Stumpf in anticipation of rules governing executive compensation from the U.S. Treasury.
Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.
================== Press Release End ===================
John Stumpf’s behavior is not the exception. It’s the rule! Wells Fargo has not paid back anything but the interest due on the money. No principal has been returned. Is the Government going to give you an open ended loan on your house at 2% interest with not fixed payment dates?
Do you have a mortgage loan from Wells Fargo? Can you just tell them you “intend” to pay it back shortly? Can you? Can you just borrow as much as you want and not ever pay it back? It’s an open checkbook for these people to keep paying themselves and with no plan for repayment.
Is this bailout creating jobs? Where are they? Is this bailout preventing foreclosure? Where is that occurring?
All that is happening is the wealthy GMF’s are paying themselves more. It’s free money for them. Then they are using the excess to acquire additional assets.
There you have it just one of 100’s of examples of GMF’s using taxpayer money for their own benefit.
American Taxpayers have no say in what is happening. American Taxpayers are being duped, robbed, and lied to. Your future, your homes and businesses, your children's hope for a quality life is being flushed down the toilet by "Business as Usual" GMFs who only care about their own self interests.
Intelligent Comments Welcome