In financial news, Massachusetts Senator Elizabeth Warren grilled Wells Fargo CEO John Stumpf during his two-hour testimony to the Senate Banking Committee Tuesday over a growing scandal at the major Wall Street bank involving thousands of employees who took private customer information to create 2 million fake accounts in order to meet sales targets. The scandal dates back to at least 2011, and CEO John Stumpf admits he’s known about the practice since 2013. Wells Fargo has been fined $185 million. On Tuesday, Senator Elizabeth Warren called on Stumpf to be investigated and to resign.
Sen. Elizabeth Warren: “But you squeezed your employees to the breaking point, so they would cheat customers and you could drive up the value of your stock and put hundreds of millions of dollars in your own pocket. And when it all blew up, you kept your job, you kept your multimillion-dollar bonuses, and you went on television to blame thousands of $12-an-hour employees who were just trying to meet cross-sell quotas that made you rich. This is about accountability. You should resign. You should give back the money that you took while this scam was going on. And you should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission.”