Wells Fargo blames media for canceled 'recognition events'
Wells Fargo & Co. says it's not being treated fairly.
The bank that took $25 billion in federal bailout money is blaming the media for it having to cancel events for employees this year.
The bank took out full-page ads in Sunday's New York Times and Washington Post that being "Okay, time out. Something doesn't feel right."
Wells Fargo CEO John Stumpf writes that institutions that receive bailout money should "re-examine" how much they spend on employee-recognition events, but insists "deliberately misleading" media stories are forcing them to cancel all "major employee-recognition events."
Last week, The Associated Press reported that Wells Fargo had booked 12 nights at the Wynn Las Vegas and the Encore Las Vegas.
The company initially defended the trip. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled.
The trip was to come on the heels of an announcement that Wells Fargo lost more than $2.3 billion in the last three months of 2008.
Previous all-expense-paid trips for Wells Fargo have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests.
Bank officials would not elaborate on Sunday's ad, saying the ad speaks for itself.
It reads: "These one-sided stories lead you to believe every employee recognition event is a junket, a boondoggle, a waste or that it's for highly-paid executives. Nonsense!"
That stopped some readers in their tracks.
"We're not gonna give you any perks and blame it on the media? Give 'em a little bonus, pad the paycheck, I'm sure no one will mind," said Wilbur Hathaway of First and Pike News in Seattle.
Wells Fargo's CEO writes: "The funds to pay for recognition events...do not come from the government. They come from our profits."
The ad insists canceling such events hurts "...The Wells Fargo team members..." including tellers and other non-executive employees.
Wells Fargo customers Melody Dady said she doesn't want bank execs living large while customers struggle.
"There is no sense spending that much money," she said.
But bank customer Bobbi-Jo Marlin thinks Wells Fargo should spend its money where it wants.
"If they comfortably have the money to give the perks without taking out a loan or borrowing money then they have every right to do it and shove it in America's face," said Marlin.
The ad says the company is canceling all "major" annual recognition events for the rest of the year. We don't know if that means every event is cancelled.
Wells Fargo refused to comment for this story.
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The Associated Press contributed to this story.
The bank that took $25 billion in federal bailout money is blaming the media for it having to cancel events for employees this year.
The bank took out full-page ads in Sunday's New York Times and Washington Post that being "Okay, time out. Something doesn't feel right."
Wells Fargo CEO John Stumpf writes that institutions that receive bailout money should "re-examine" how much they spend on employee-recognition events, but insists "deliberately misleading" media stories are forcing them to cancel all "major employee-recognition events."
Last week, The Associated Press reported that Wells Fargo had booked 12 nights at the Wynn Las Vegas and the Encore Las Vegas.
The company initially defended the trip. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled.
The trip was to come on the heels of an announcement that Wells Fargo lost more than $2.3 billion in the last three months of 2008.
Previous all-expense-paid trips for Wells Fargo have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests.
Bank officials would not elaborate on Sunday's ad, saying the ad speaks for itself.
It reads: "These one-sided stories lead you to believe every employee recognition event is a junket, a boondoggle, a waste or that it's for highly-paid executives. Nonsense!"
That stopped some readers in their tracks.
"We're not gonna give you any perks and blame it on the media? Give 'em a little bonus, pad the paycheck, I'm sure no one will mind," said Wilbur Hathaway of First and Pike News in Seattle.
Wells Fargo's CEO writes: "The funds to pay for recognition events...do not come from the government. They come from our profits."
The ad insists canceling such events hurts "...The Wells Fargo team members..." including tellers and other non-executive employees.
Wells Fargo customers Melody Dady said she doesn't want bank execs living large while customers struggle.
"There is no sense spending that much money," she said.
But bank customer Bobbi-Jo Marlin thinks Wells Fargo should spend its money where it wants.
"If they comfortably have the money to give the perks without taking out a loan or borrowing money then they have every right to do it and shove it in America's face," said Marlin.
The ad says the company is canceling all "major" annual recognition events for the rest of the year. We don't know if that means every event is cancelled.
Wells Fargo refused to comment for this story.
---
The Associated Press contributed to this story.