Wells Fargo CEO Defends Bank on Capitol Hill

Wells Fargo Rehires Workers Fired In Fake Account Scandal

Wells Fargo Rehires Workers Fired In Fake Account Scandal

Tuesday morning, Wells Fargo President and CEO Tim Sloan was in the hot seat at the U.S. Senate Committee on Banking, Housing, and Urban Affairs full committee hearing titled "Wells Fargo: One Year Later". Wells Fargo and Sloan himself have defended his role, saying he was not supervising the consumer banking division at the time and therefore was not responsible for what occurred there.

Warren dinged Sloan for being at the bank for almost three decades, saying his insider status was detrimental to creating real change at the bank.

The rehirings were part of the bank's commitment "to the former Wells Fargo team members who were affected by the Community Bank's old ways of doing things", he said.

Elizabeth Warren played previous year shining a light on Wells Fargo's fake account scandal, which resulted in the resignation of the banking giant's CEO, John Stumpf. Elizabeth Warren (D, Mass.), told Mr. Sloan he "should be fired", calling him "incompetent" and "complicit" during the sales practices scandal for not investigating the problems sooner. After the dust settled, the company was hit with a very big fine; CEO John Stumpf - and other top executives - had resigned; and numerous employees involved in the scandal were fired.

US Expels 15 Officials from Cuban Embassy After Bizarre Attacks
The official maintained that despite the USA moves, Washington was not assigning "culpability" to Cuba's Communist Government. Cuba had blasted the American move as "hasty" and lamented that it was being taken without conclusive investigation results.

Republican senators questioned Mr. Sloan over more details around the scope of the sales practices problems, largely rehashing what happened.

"I have made mistakes, I haven't been ideal", he said. And after a long session of humble contrition on Tuesday in which senators from both parties pummeled him - including questions from Democrats on the lender's continued reliance on forced arbitration for customers - Sloan bit back.

Wells Fargo has said that 3.5 million accounts were potentially opened without customers' permission between 2009 and 2016, as employees tried to meet ambitious sales targets.

"Why should we believe you're committed to changing your bank's practices and being fair to customers", he asked, "when you continue to use that behind-closed-doors arbitration system that clearly doesn't allow customers their day in court?"

Where is OJ Simpson going after prison? 'None of your business'
He was found liable for the killings in a civil court hearing two years later and ordered to pay the victims' families $33.5m. ET) "in an effort to ensure public safety and reduce the potential for incident", the Nevada Corrections Department said.

In response, Sloan said that the Wells Fargo board should be given credit for making an independent investigation public and for taking "very strong action in terms of executive accountability". Sloan said he wasn't familiar with the case. Sherrod Brown (D-Ohio) said at the start of the hearing.

"I certainly haven't been ideal", Sloan, 57, acknowledged, though he said he's still the right person to lead the San Francisco-based bank.

Critics in the financial industry and Republicans in Congress say arbitration provides a faster and more cost-effective way to resolve disputes with consumers.

Catalan leaders' uncertain path after the region's vote for independence
Leo Varadkar was quizzed about the referendum held by the regional government without the permission from the Spanish parliament. Espanyol and Girona, the other Catalan teams in Spain's top flight, also said they would join the one-day strike .

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.