Published: Fri, March 15, 2019
Finance | By Loren Pratt

Wells Fargo CEO Tim Sloan Testifies Before House Committee

Wells Fargo CEO Tim Sloan Testifies Before House Committee

On Tuesday, Wells Fargo CEO Timothy Sloan appeared before Congress to assure the country that the ripoffs are, at last, under control.

Committee Chair Maxine Waters opened by recounting Wells Fargo's missteps, saying the bank had failed to prove it had abandoned harmful policies.

Several times, Sloan said he didn't think the bank's enormity was its issue.

Sloan firmly rebuffed claims by Waters that Wells Fargo should be broken up.

Asked about the report, Sloan said it was "inaccurate". "It promises to make sure it doesn't happen again", said Rep. Patrick T. McHenry (N.C.), the ranking Republican on the committee. He added that the bank's behavior has real world consequences for its customers. "Our constituents should be able to trust their own bank". However in questioning Sloan, who confronted bipartisan criticism through the listening to, Ocasio-Cortez, a self-described Democratic socialist, shortly went a lot additional.

Target: Wells Fargo.and just in time to crash the financial institution's annual founding day celebration, on March 18.

"Wells Fargo's ongoing lawlessness and failure to right the ship suggests the bank - with approximately $1.9 trillion in assets and serving one in three USA households is simply too big to manage", Waters said.

"So you're smart, they're dumb, you have their best interests at heart", Sherman said.

Wells Fargo shares were flat in midday trade.

McHenry asked Sloan whether the bank might disclose more instances of consumer abuses in the future.

Watching @AOC watch questions of #WellsFargo CEO that people like me have dreamed of being asked from a Congressional hearing.

One of the harshest blows was dealt after the hearing by a key regulator, which said in a statement it was "disappointed" Wells Fargo had not made more progress fixing its corporate governance and risk management.

While Sloan assured lawmakers that Wells is doing everything it can to comply with regulators, one federal banking agency took issue with the assertion.

The stakes had been high heading into the hearing for Sloan, a 31-year Wells Fargo veteran who was appointed CEO when John Stumpf retired soon after the sales practices scandal erupted in 2016.

The bank's stock is trading almost flat Tuesday.

Still, Beck doubted the House hearing would lead to more drastic penalties on Wells Fargo, like breaking up the bank.

Among a litany of scandals in recent years was Wells' acknowledging that its employees had opened up to 3.5 million accounts without customers' authorization or knowledge in order to meet sales quotas.

Stumpf retired almost two weeks after his grilling before that committee, which was chaired by Texas Republican Jeb Hensarling.

Ocasio-Cortez told Sloan, "So these companies run private detention facilities, run by ICE, which is involved in caging children".

"Sloan could intensify the legislative scrutiny if he is seen as evasive or insincere", he wrote.

The findings were released by the Committee for Better Banks, a New York-based coalition of industry employees who push for better working conditions at banks.

He said one exit was finalized and the other was still pending, but he couldn't remember which was which.

The confrontation with lawmakers underscored how far Wells Fargo has yet to go to win back the public 30 months after it was fined for opening millions of bogus accounts for consumers.

Sloan said the bank has made amends. "We are equally committed to preventing new problems from developing".

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