Five Things to Know About Wells Fargo CEO Timothy Sloan's Testimony
Oct 05 2017
Lawmakers from both parties criticized Sloan for the various scandals that had gone on allegedly without his knowledge.
The hearing occurred about a year after Wells Fargo leaders appeared in Washington to speak about the fake accounts, which were used to boost sales figures.
Sloan argues that the auto-loan trouble is "quite different" from the fake account scandal, because employees were not incentivized by sales goals to sell vehicle insurance. Elizabeth Warren (D-Mass.) related to the CFPB's rule, several banks, including Capital One and Bank of America, said they rarely use the clauses.
"At best you are incompetent, at worst you were complicit", Warren said. "And either way, you should be fired".
In his opening remarks, Sloan, who replaced Stumpf last October, apologized for the bank's fake accounts scandal and outlined reforms the company has taken over the past year.
In the months since that revelation, it has emerged that the scandal goes far deeper-with bill payment services, vehicle insurance, and mortgage adjustment foisted upon more than a million customers without their consent.
Wells Fargo & Company (WFC) share price jumped 0.2% to $55.58 in the last trading session.
More notable recent Wells Fargo & Co (NYSE:WFC) news were published by: Reuters.com which released: "Wells Fargo's lone outsider aims to clean up bank's reputation" on September 20, 2017, also Reuters.com with their article: "US watchdog settled for small fine over Wells Fargo phony accounts: report" published on September 19, 2017, Fool.com published: "Is Wells Fargo & Company a Buy?" on September 07, 2017.
Wells Fargo has rehired more than one-third of the employees it axed in the wake of the bank's fake accounts scandal, Sloan said. "And yet Wells Fargotold this committee that fraudulent sales practices were limited to the community bank".
The company also doesn't plan to drop mandatory-arbitration clauses entirely on its products, Sloan said during testimony before the Senate Banking Committee.
"Wells Fargo is not going to change with you in charge", said Warren, who noted that Sloan had bragged about the bank's ability to open accounts between 2011 and 2014 and had said its strategy did not need to change months before its 2016 scandal. Despite the departures of Stumpf and Tolstedt, much of the bank's senior leadership has stayed in place.
The day will come when politicians will no longer be allowed to hurl the most outrageous invective at Wall Street executives without being called to account for those remarks, and that will be a sad day indeed for the senior senator from MA. It's not the product selection. GOP senators are working on bringing legislation to the floor that would rescind it.
"I'm not afraid to make hard decisions when it's needed and I have the support of 270,000 people", he said, referencing the bank's workers. Wells Fargo & Co now has $273.71B valuation.
"I have made mistakes".
Institutional ownership refers to the ownership stake in a company that is held by large financial organizations, pension funds or endowments.
Sloan defended his response, saying the bank took some "incremental" actions early on, but misunderstood the depth of the problem. Giving a frank condemnation of Wells Fargo's behavior, the Louisiana senator said he's against a business practice that was putting "Wells Fargo first and the customer second". Heidi HeitkampMary (Heidi) Kathryn HeitkampJustice Dept investigating Equifax stock sales: report Dem senator: Trump "very serious" about infrastructureTrump steps up courtship of Dems MORE (D-N.D.).