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RE: Accountability for Fraud - How Does Nobody from Wells Fargo Go To Jail
So long as the money taken from these unwitting customers is returned, I'd say that justice has been served. As for Wells Fargo themselves, well, that's where the power of the market can, and should, rear its head. In a marketplace where banking is not so intensely regulated that only a few mega banks exist, reputation would be everything. People should be leaving Wells Fargo in droves (I know I would), and this should significantly impact its bottom line. Whether or not it actually hurts Wells Fargo because it's one of those too-big-to-fail banks remains to be seen, but that's how it would work.
The catch is that some of the people impacted by this were impacted long term in the form of credit score hits. The CEO couldn't answer how those people would be compensated, especially those who are applying for new loans and have to pay a higher interest rate. Ex. Mortgages for the next 30 years of their lives.
I understand, and in many ways this kind of damage is dramatically worse. I would argue, though, that the credit reporting agencies we have are largely a result of the regulatory infrastructure around banking, and thus are party to the problem as well. In this situation, though, you're right: the party responsible isn't going to do much, if anything, to alleviate that cost.