This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37419968
The article has changed 5 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Wells Fargo: John Stumpf apologises for illegal accounts | |
(35 minutes later) | |
The chief executive of the US bank Wells Fargo has apologised to customers for illegally opening accounts to boost sales targets, in a hearing at the Senate Banking Committee on Tuesday. | |
Bank workers had opened more than two million deposit and credit card accounts without customers' permission. | |
The bank was fined $185m (£142m) and accused of "widespread illegal practice" by the regulator. | The bank was fined $185m (£142m) and accused of "widespread illegal practice" by the regulator. |
"I am deeply sorry we failed to fulfil our responsibility," said John Stumpf. | |
"There is no question with some of our customers we violated trust," he added. | |
"We never directed nor wanted our team members to provide products and services to our customers that they didn't want. | |
"That said, I accept full responsibility for all unethical sales practices," he said. | |
But Mr Stumpf has ignored calls for him to step down from his post in the wake of the scandal. | |
"We recognise now that we should have done more sooner to eliminate unethical conduct or incentives that may have unintentionally encouraged that conduct," he went on. | |
Stumpf added that although the bank "took many incremental steps…. we now know those steps were not enough". | |
The bank said it would be contacting every deposit customer across the country to see if their accounts were properly authorised. | |
It will also contact hundreds of thousands of customers with open credit cards to see of they want or need their credit cards. | |
In the future, confirmation emails will be sent to customers within one hour of the opening of a new deposit account. | |
The fine imposed on the bank by the US Consumer Financial Protection Bureau was the largest ever imposed by the regulator. | The fine imposed on the bank by the US Consumer Financial Protection Bureau was the largest ever imposed by the regulator. |