banner
Business

The Latest: Wells Fargo CEO promises help for customers

Posted 11:16 a.m. Tuesday

— The Latest on the testimony of Wells Fargo's CEO before the Senate Banking Committee (all times local):

11 a.m.

The Wells Fargo CEO is promising action to assist any customers who were hurt by having accounts opened without their permission to meet sales quotas.

John Stumpf told the Senate Banking Committee on Tuesday the bank will contact all deposit customers in the U.S., including those who already had fees refunded, to invite them to review their accounts with their banker.

Regulators fined San Francisco-based Wells Fargo $185 million earlier this month. Some 5,300 Wells Fargo employees have been fired and the bank has said it will end all product sales targets for all retail banking employees.

___

10:45 a.m.

A Republican senator says it would be "malpractice" if Wells Fargo doesn't institute any compensation clawbacks after allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

Sen. Bob Corker of Tennessee spoke at a Banking Committee hearing on Tuesday where Wells Fargo Chief Executive John Stumpf is testifying.

Wells Fargo has in place executive compensation clawback provisions that the board could implement.

Stumpf has said the company's board "has the tools to hold senior leadership accountable," including himself and Carrie Tolstedt, the former head of the retail banking business.

Tolstedt announced in July her retirement from the bank this year. Tolstedt is expected to leave with as much as $125 million in salary, stock options and other compensation.

___

10:30 a.m.

The CEO of Wells Fargo says he committed to addressing "unethical sales practices" at the bank as he speaks before a congressional panel about allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

Chief Executive John Stumpf said Tuesday the Wells Fargo board is "actively engaged" on the issue and that the board "has the tools to hold senior leadership accountable, including me and Carrie Tolstedt, the former head of our retail banking business."

Wells Fargo has in place executive compensation clawback provisions that the board could implement.

Tolstedt announced in July her retirement from the bank this year. Tolstedt is expected to leave with as much as $125 million in salary, stock options and other compensation.

___

10:15 a.m.

The CEO of Wells Fargo says he is "deeply sorry" as he speaks before a congressional panel about allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

Chief Executive John Stumpf said Tuesday he accepts full responsibility for what occurred and the bank should have done more sooner to address any misconduct.

Committee Chairman Sen. Richard Shelby, R-Ala., said as the hearing began that there are many unanswered questions, including when the misconduct started, how much top executives knew about it and why did federal regulators wait until this year to crack down.

Regulators fined San Francisco-based Wells Fargo $185 million earlier this month. Some 5,300 Wells Fargo employees have been fired.

___

10 a.m.

The CEO of embattled Wells Fargo has appeared to testify before the Senate Banking Committee on the scandal over allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

According to prepared remarks obtained by The Associated Press, Chief Executive John Stumpf plans to say he is "deeply sorry" the bank failed to meet its responsibility to customers and didn't act sooner to stem "this unacceptable activity."

Committee Chairman Sen. Richard Shelby, R-Ala., says there are many unanswered questions, including when the misconduct started, how much top executives knew about it and why did federal regulators wait until this year to crack down.

He says, "If there ever were a textbook case of consumers needing protection, this was it."

___

1 a.m.

The CEO of Wells Fargo plans to apologize before a congressional panel for betraying customers' trust in a scandal over allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

In prepared testimony obtained by The Associated Press, Chief Executive John Stumpf says he is "deeply sorry" the bank failed to meet its responsibility to customers and didn't act sooner to stem what he called "this unacceptable activity."

He testifies Tuesday before the Senate Banking Committee.

Regulators fined San Francisco-based Wells Fargo $185 million earlier this month. Some 5,300 Wells Fargo employees have been fired.

Comments

Please with your WRAL.com account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all