Wells Fargo is not complying with settlements, according to congressional report
Rep. Maxine Waters considering DOJ referral for former Wells Fargo CEO
Democratic Rep. Maxine Waters said she is considering referring former Wells Fargo CEO Timothy Sloan to the Department of Justice after releasing a report claiming he made false statements to Congress.
Waters, chairwoman of the House Committee on Financial Services, released the congressional report with Rep. Al Green (D-TX), Chairman of the Subcommittee on Oversight and Investigations, alleging that Wells Fargo is not living up to the terms of settlements in its sales scandal.
The report also says regulators aren't working hard enough to enforce the agreements.
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The report is part of a year-long probe and comes ahead of hearings next week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WFC | WELLS FARGO & CO. | 59.92 | -0.69 | -1.13% |
Wells Fargo's new chief executive, Charles Scharf, and chair, Betsy Duke will testify before the committee for the first time. Waters called on Duke and board member James Quigley to resign for their role in the sales scandal.
The investigation says Wells Fargo board and management did not take seriously settlements the bank agreed to.
The bank declined to comment.
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"This Committee staff report shines a much-needed spotlight on 'The Real Wells Fargo,' a reckless megabank with an ineffective board and management that has exhibited an egregious pattern of consumer abuses," Waters said. "Last year, I made it clear that under my leadership, the Committee is putting consumers first and holding financial institutions accountable."
Financial regulators knew about serious, enterprise-wide deficiencies at Wells Fargo for years without taking public enforcement action, according to the report.
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The report also blames the bank's board saying it failed to ensure management could competently address the company's risk management deficiencies.
Among the committee's recommendations, require greater transparency regarding bank supervision and how banks treat consumers.
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Wells Fargo has paid out more than $7 billion in fines and penalties related to the scandal since 2016.