Wells Fargo CEO Faces Senate Hearing

Chris Gaetano
Published Date:
Sep 20, 2016
Wells Fargo

Wells Fargo CEO John Stumpf faced a hearing before the Senate Banking Committee, where he apologized for the scandal where millions of fake accounts were opened in customer's names, but insisted there was no orchestrated effort or scheme on the part of the company, according to The Business Insider. Instead, as he has in the past, he laid the blame at low-level employees who were trying to meet aggressive sales goals. He said that he, in fact, was unaware that the bank had this issue until many years after. He also defended the pay of former head of community banking Carrie Tolstedt, who was being paid $125 million when the scandal broke, and added that he will not be recommending clawing back the money. He noted that she received no severance pay when she left in July. 

Sen. Robert Menendez, however, was not buying it--he said that Stumpf created the environment where such behavior could take place. Sen. Elizabeth Warren, meanwhile, called his leadership gutless, noting that despite saying he was accountable, he has taken no actions to indicate this, such as giving up at least some of the money he collected while the scandal was going on. The senator accused him of enabling the fake accounts in order to pump up Wells Fargo stock, thereby increasing his take-home pay. She said he should resign, give back all the money he made, and be criminally investigated by the Justice Department. 

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