Wells Fargo CEO John Stumpf told members of Congress Tuesday morning that he was “deeply sorry” that the bank created millions of accounts for fake customers in the face of pressure to expand its business.
Stumpf testified to the Senate Banking Committee that there was “no orchestrated” effort by the company to push employees to create accounts without customers’ knowledge, which included steps like faking PINs and email addresses, and said that the company has worked hard to address its own business culture.
But politicians appeared unwilling to accept an apology and move on.
“This was fraud – fraud that you did not find, or fraud that you did not report soon enough,” said Sherrod Brown, the ranking Democrat on the committee.
In an open letter to Wells Fargo customers Tuesday, Democratic presidential candidate Hillary Clinton called the accounts scandal “outrageous behavior.”
The bank, which reportedly faces federal prosecution, has already paid over $180 million in fines to different regulatory bodies. But at least one senator is not necessarily satisfied with the regulators.
“Where were the federal regulators during those years?” asked Richard Shelby, the Republican chairman of the committee, referring to the years in which Wells Fargo created millions of illicit savings and credit card accounts.
“Why did it take an L.A. Times reporter to uncover what should have been uncovered by Wells Fargo’s regulators?” Shelby asked, mentioning specifically that it was unclear if the Consumer Financial Protection Bureau had any role in uncovering the wrongdoing. The Bureau has touted the settlement as a success.
Bureau director Richard Cordray was scheduled to appear before the committee later in the day, as was the head of the Office of the Comptroller of the Currency.
