LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » World News

Wells Fargo CEO defends leadership in heated Senate appearance

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Oct 03, 2017
10:37 pm
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

U.S. senators grilled Wells Fargo & Co Chief Executive Tim Sloan on Tuesday about what he had done to change the bank`s culture after a sales practices scandal erupted last year, with one senior Democratic lawmaker calling for his ouster.

Senate Banking Committee members flagged problems involving auto insurance and mortgage fees that came to light months after the lender disclosed it had created millions of phony customer accounts.

The ensuing scandal hammered Wells Fargo`s reputation and sparked management changes, lawsuits and government probes.

U.S. Senator Elizabeth Warren, seen as a possible 2020 presidential candidate, dismissed suggestions that Sloan could be an agent of change at the San Francisco-based bank and called for his firing.

"Wells Fargo is not going to change with you in charge," said Warren, who noted that Sloan had bragged about the bank`s ability to open accounts between 2011 and 2014 and had said its strategy did not need to change months before its 2016 scandal.

"The only way we`re ever going to stop these scandals is to hold executives personally accountable, to fire people who are responsible and when they break the law, to march some of them out in handcuffs," the Massachusetts lawmaker added.

Sloan, who took over from John Stumpf in October 2016, defended his own leadership and tried to distinguish the bank from the track record of his predecessor. Stumpf resigned less then a month after he appeared before the same Senate committee.

"I am angry about how we handled the problems historically," Sloan said, also noting that his knowledge of Wells Fargo and the actions he had taken since becoming CEO made him qualified to lead the bank.

But Democratic Senator Sherrod Brown said Wells Fargo was still falling short of the mark, criticizing it for "forcing" legal claims against the bank into private arbitration, including one case brought two months ago.

"The changes Mr. Sloan and his team made are not enough,” Brown said.

The Ohio lawmaker also pointed out that Sloan was a three-decade veteran of the bank and questioned why he had not taken action earlier.

Wells Fargo shares were down 1 percent in early afternoon trading. REGULATORY, LEGAL TANGLES

The stakes are high for Sloan as he tries to shake the year-long scandal.

The Office of the Comptroller of the Currency, the leading regulator for Wells Fargo, is considering new sanctions against the bank for customer abuses involving auto insurance and mortgage loans, Reuters reported on Monday.

Wells Fargo a year ago reached a $190 million settlement with regulators after it said it had opened as many as 2.1 million accounts without customers` authorization to meet internal sales targets.

The bank raised that estimate in August to potentially as many as 3.5 million after an expanded review. Sloan said on Tuesday he was "confident" no more than 3.5 million accounts had been opened.

Warren, who last year accused Stumpf of "gutless leadership," has repeatedly called on the Federal Reserve to remove 12 members of Wells Fargo`s board of directors, including Vice Chair Elizabeth Duke.

Duke, a former Fed governor, is set to take over from Wells Fargo Chairman Stephen Sanger at the start of 2018.

Wells Fargo`s problems with auto insurance and mortgage products emerged publicly this year. In late July, it said hundreds of thousands of customers were due a refund on auto insurance that they did not need.

In late August, a homeowner sued Wells Fargo for charging too much for his fixed-rate mortgage. Sloan said on Tuesday the bank will contact 108,000 mortgage customers to remediate any complaints they may have about a fee paid to lock in rates.

The bank has already said its "rate-lock" service is under investigation by the Consumer Financial Protection Bureau.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

Budget 2021 Expectations LIVE: Here is what India wants - Check latest news, updates, demands here

Nearly Rs 10 lakh fine on wedding organiser for breaching Covid-19 lockdown; many guests left as police arrived

Rs 5, 10 and 100 news: Will old notes be valid after March 2021? Here is truth from Modi government

Check Modi government's latest notices to Chinese apps including Tiktok, PUBG mobile game

Bullet Train: Undersea tunnel! Here is latest news update on Mumbai-Ahmedabad High Speed Rail

Budget 2021 Expectations: Mobile industry raises demand for GST rate cut in Union Budget 2021-2022

Policy proposal for employment generation, scale-up in MSME sector

Budget 2021: Unprecedented! 1st time ever since 1947, this is going to happen in Union Budget 2021-2022

Stock market: Record-shattering gains, 50k BSE peak - What lies ahead? Analysts predict these big things amid Budget 2021

Policy reforms, sops and tax breaks? Volatility in key stock markets set to flare up as investors bet big on Budget 2021

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved