“Of course, Wells Fargo had incentive systems that were too strong in the wrong direction,” Munger said at the Daily Journal’s (DJCO) annual meeting in Los Angeles. “Of course, they were too slow in reacting to the bad news when it came. Everyone makes those mistakes, but we make fewer than others.”
He added that it’s “time for the regulators to let up on Wells Fargo”
He said that Wells Fargo will be “better off” for having made those mistakes. He also thinks the customers will be better off too.
In the fall of 2016, it was revealed that as many as 2 million fraudulent accounts were opened without customers’ permission. The bank was fined $185 million after regulators found employees at the retail bank opened up the bogus accounts to meet sales targets. The bank fired more than 5,000 employees tied to the scandal.