Bloomberg: Frozen Wells Fargo Bonuses Show a Peril for Bankers After Crisis

Bloomberg, February 6, 2020: Frozen Wells Fargo bonuses show a peril for bankers after crisis

A new religion swept Wall Street after the 2008 crisis: Pay executives with stock, make them wait to collect it and there will be fewer problems.

Now a generation of executives retiring from Wells Fargo & Co. is experiencing what can happen to those payouts when new scandals arise — even for people uninvolved in wrongdoing.

Dozens of former executives have waited, in some cases for years, to collect millions of dollars in stock-linked bonuses, according to people with knowledge of the situation. Behind the scenes, the company’s scandals triggered a series of stringent reviews by both the bank and regulators that must be completed for each payout to proceed.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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