WASHINGTON — The CEO*** of Wells Fargo faced accusations of fraud and
calls for his resignation Tuesday from harshly
critical senators at a hearing over allegations that bank employees
opened *millions of accounts customers didn’t know about* to meet
aggressive sales quotas.
Members of the Senate Banking Committee showed bipartisan outrage over
the long-running conduct, unsatisfied by Chief Executive John Stumpf’s
show of contrition.
Stumpf bristled at Warren’s suggestion that the sales practices were a
“scam.” The senators asked that he specifically lay out action the bank
will take to do so.
They also challenged assertions that he and other *Wells Fargo senior
executives didn’t become aware of the problems until 2013* — when the
sales misconduct
was reported by The Los Angeles Times. The practices apparently began at
least in *2009*. (Now the NYT's is reporting the scam started earlier)RG
Wells Fargo has long been known in the banking industry for its
aggressive sales goals. Carrie Tolstedt, the former head of the retail
banking business,
announced in July that she would retire from the bank this year. *She is
expected to leave with as much as $125 million in salary, stock options
and other compensation.*
Sen. Bob Corker of Tennessee said it would be “malpractice” if the bank
doesn’t institute the compensation clawbacks, and Stumpf said the board
“has the tools to hold
senior leadership accountable,” including himself and Tolstedt.
*Questioned again by Warren, Stumpf said the bank had not considered
firing her.*
Under the settlement with regulators,*it neither admitted nor denied the
allegations. *It later said it plans to eliminate the sales targets by
Jan. 1.
Some 5,300 Wells Fargo employees have been fired.
Edited for brevity. Full found here:
http://www.pbs.org/newshour/rundown/wells-fargo-ceo-apologizes-senators-heap-criticism-bank/
***A Pierz, Minnesota native, Stumpf grew up as one of 11 children on a
dairy and poultry farm.[5] His father was a dairy farmer. His father is of
German descent and his mother, Polish descent. He was raised as a
Catholic.[6] Stumpf shared a bedroom with his brothers until he was
married.
Stumpf graduated in the bottom half of his high school class. His bad
grades, combined with his limited family finances, resulted in Stumpf
obtaining
a job as a breadmaker in a Pierz bakery. After a year, Stumpf enrolled
in St. Cloud State University on a provisional basis. He eventually
obtained a job
as a repossession agent at First Bank in St. Paul, Minnesota.[7]
Stumpf earned his bachelor's degree in finance from St. Cloud State
University, St. Cloud, Minnesota and his MBA with an emphasis in finance
from
the Carlson School of Management.[8]
