Wells Fargo Sued By Customers Accusing It Of "Fraud And Reckless Behavior"
The bad news for Wells Fargo CEO John Stumpf keep getting worse. As we reported last week, Stumpf is expected to testify before Congress this week in response to allegations that the bank allegedly opened over two million phony accounts without customers’ approval. The Senate Banking Committee has summoned John Stumpf, chief executive of Wells Fargo & Co., to testify about the bank’s alleged sales-practices misdeeds after it agreed last week to pay a $185 million fine and enter into an enforcement action with regulators. Mr. Stumpf told The Wall Street Journal in an interview Tuesday that he is prepared to “share Wells Fargo’s story” at the hearing.
His testimony will be the first from a big-bank chief under fire since 2012. Back then, the committee brought in J.P. Morgan Chase & Co. chief James Dimon to explain his bank’s “London whale” trading losses, in which the company lost more than $6 billion.
Then, over the weekend we learned America's largest mortgage lender and until recently the largest bank by market capitalization, was sued on Friday by customers who accused the bank of fraud and recklessness for its behavior.
Wells Fargo CEO John Stumpf speaks at the Bay Area Council Outlook Conference