A group of religious investors have filed a shareholder resolution against Wells Fargo over the bank's fake accounts scandal. Fred Katayama reports.
Nuns are after Wells Fargo - again. A group of religious investors including nuns have filed a shareholder resolution against the bank. It's calling on Wells Fargo to do two things: one, report on the root causes of the scandal in which employees opened bogus accounts without their customers' permission, and two, discuss improved controls. The resolution resembles the one filed by the Sisters of St. Francis of Philadelphia in 2014. But it withdrew that resolution after the bank said it would provide details about risk controls. University of Delaware finance professor Charles Elson said, "The resolution, if they get a big vote, has impact. But there's so much else going on here, I think at this point, this is not a major concern." Wells Fargo has taken some action. It is clawing back $41 million in stock it had awarded to CEO John Stumpf, among other things. But that hasn't stopped other investor groups affiliated with the Interfaith Center on Corporate Responsibility from filing resolutions. The Unitarian Universalist Association has called on the bank's board to study how to tie executive pay to ethical conduct.