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Wells Fargo boss should be fired, says senator | Wells Fargo boss should be fired, says senator |
(about 5 hours later) | |
Washington senators have criticised Wells Fargo, saying the US bank had not done enough to reform the corporate culture that led to the creation of millions of fake accounts. | Washington senators have criticised Wells Fargo, saying the US bank had not done enough to reform the corporate culture that led to the creation of millions of fake accounts. |
Senator Elizabeth Warren called for the chief executive, Tim Sloan, to be fired and board members replaced. | Senator Elizabeth Warren called for the chief executive, Tim Sloan, to be fired and board members replaced. |
Another senator asked if regulators should revoke the bank's charter. | Another senator asked if regulators should revoke the bank's charter. |
Mr Sloan, who was appointed following the scandal over sales practices, said the firm had taken steps to improve. | Mr Sloan, who was appointed following the scandal over sales practices, said the firm had taken steps to improve. |
"We've made fundamental changes to the way we do business," he said at a congressional hearing in Washington on Tuesday. | "We've made fundamental changes to the way we do business," he said at a congressional hearing in Washington on Tuesday. |
The hearing occurred about a year after Wells Fargo leaders appeared in Washington to speak about the fake accounts, which were used to boost sales figures. | The hearing occurred about a year after Wells Fargo leaders appeared in Washington to speak about the fake accounts, which were used to boost sales figures. |
Regulators fined the the bank more than $180m over the those practices last year. Wells Fargo also agreed to pay more than $140m to settle a class-action lawsuit. | |
But this summer, Wells Fargo said as many as 3.5 million accounts may have been created for customers without their permission over about eight years - more than it had previously acknowledged. | |
It has also said it had uncovered problems with the bank's online payment system and admitted to wrongly charging customers for car insurance. | |
On Tuesday, Mr Sloan, a long time executive at the bank, maintained the most serious problems were limited to the firm's retail banking unit. | On Tuesday, Mr Sloan, a long time executive at the bank, maintained the most serious problems were limited to the firm's retail banking unit. |
Senators criticised the company for the additional problems and continuing to force customers to pursue claims outside of court, among other practices. | |
"Wells Fargo is not going to change with you in charge," Ms Warren said. | "Wells Fargo is not going to change with you in charge," Ms Warren said. |
Ms Warren had called for the resignation of the firm's previous chief executive as well. | Ms Warren had called for the resignation of the firm's previous chief executive as well. |