“When banks like Wells Fargo take shortcuts, everyone loses. Customers are defrauded. Public confidence is lost. And value for long-term investors like the New York City Pension Funds is undermined.  The fraud at Wells Fargo is ultimately an oversight failure. That’s why real, meaningful change needs to start at the top – with the Board of Directors.

“The recent appointment of two independent directors – Karen Peetz and Ron Sargent – and the firing of four senior executives are significant moves in the right direction. But they are just steps on a long-term path Wells Fargo will need to take to restore investor and consumer confidence. More must be done. The board must complete its independent investigation and fully disclose its findings and recommendations. We will continue to engage with the company to improve oversight and move the needle on accountability, because New York City’s retired firefighters, police officers, teachers, and other public employees deserve nothing less.”

In September 2016, after reports of widespread consumer banking fraud at Wells Fargo, New York City Comptroller Scott M. Stringer sent a letter to the bank’s Board of Directors, urging them to claw back pay from the senior executives responsible under a policy originally implemented in response to a proposal by the New York City Pension Funds. A week later, the board clawed back $60 million in incentive pay from the CEO and a Senior Vice President.