Wells Fargo CEO Faces Calls to Resign on Capitol Hill

Elizabeth Warren Wells Fargo

Andrew Cline

"If that (report) is true, it directly contradicts your testimony to this committee", Democratic Senator Chris Van Hollen told Sloan, who responded that he would look into the case.Wells Fargo is fighting some customers in court for now, company spokeswoman Jennifer Dunn said, but the bank has made a $142 million settlement offer to settle all disputes arising from the scandal, which erupted past year."As Tim emphasized today, Wells Fargo is committed to making things right with our customers", Dunn said.Senators also flagged problems involving the bank's auto insurance and mortgage fees that came to light months after Wells Fargo disclosed the phony accounts.

Responding to Warren's criticism, Sloan acknowledged he had made mistakes, but said the bank has made fundamental changes to how it does business since a year ago. About 3.5 million accounts were affected.

"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 MA lawmaker added. Stumpf resigned less then a month after he appeared before the same Senate committee. Warren, a Massachusetts Democrat, accused the longtime senior executive of either being incompetent or complicit. Some senators across the aisle acknowledged Mr. Sloan's visits to their offices in recent days before the hearing, a change of tone from the bank's hearings past year.

"We've made fundamental changes to the way we do business", he said at a congressional hearing in Washington on Tuesday.

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

"Wells Fargo is a better bank today than it was year ago and in a year it will be a better bank than it is today", he pledged.

Held roughly a year after the discovery that Wells Fargo staffers had created millions of fraudulent accounts to boost their own performance, the hearing gave senators on both sides of the aisle a chance to blast the bank, and its leadership, for repeatedly failing customers.

Wells Fargo

An expanded internal review revealed in August that the number of fake accounts opened was around 3.5 million, rather than the 2.1 million that was originally estimated past year.

As many as 3.5 million accounts were involved as employees tried to meet aggressive cross-selling goals that have since been scrapped.

"Wells Fargo cheated millions of people for years", Warren said.

- Separately, the Office of the Comptroller of the Currency is considering whether to sanction Wells Fargo for improperly charging customers for auto insurance and mortgage loans, Reuters reported on October 2, citing a source familiar with the matter.

In late August, a homeowner sued Wells Fargo for charging too much for his fixed-rate mortgage. "Warren said", adding that she took statements out of context.

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

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