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Wells Fargo boss urged to resign over accounts scandal | Wells Fargo boss urged to resign over accounts scandal |
(about 3 hours later) | |
During fierce criticism from a panel of US senators, Wells Fargo chief executive John Stumpf was told to resign over a bogus accounts scandal. | During fierce criticism from a panel of US senators, Wells Fargo chief executive John Stumpf was told to resign over a bogus accounts scandal. |
Senator Elizabeth Warrren told Mr Stumpf he should step down as his bank had "squeezed" its employees "so they would cheat customers". | Senator Elizabeth Warrren told Mr Stumpf he should step down as his bank had "squeezed" its employees "so they would cheat customers". |
Bank workers had opened more than two million deposit and credit card accounts without customers' permission. | Bank workers had opened more than two million deposit and credit card accounts without customers' permission. |
Mr Stumpf said he was "deeply sorry" for that and failing to act quickly. | Mr Stumpf said he was "deeply sorry" for that and failing to act quickly. |
The bank was fined $185m (£142m) earlier this month and accused of "widespread illegal practice" by the regulator. | The bank was fined $185m (£142m) earlier this month and accused of "widespread illegal practice" by the regulator. |
Wells Fargo fired more than 5,000 staff in response to the scandal. | Wells Fargo fired more than 5,000 staff in response to the scandal. |
"I am deeply sorry we failed to fulfil our responsibility," said Mr Stumpf, before a hearing of the Senate banking committee. | "I am deeply sorry we failed to fulfil our responsibility," said Mr Stumpf, before a hearing of the Senate banking committee. |
"There is no question with some of our customers we violated trust," he added. | "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. | "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. | "That said, I accept full responsibility for all unethical sales practices," he said. |
'Squeezed employees' | 'Squeezed employees' |
But Senator Warren, who has long been a critic of the US banking industry, was unmoved by his apology. | But Senator Warren, who has long been a critic of the US banking industry, was unmoved by his apology. |
"You squeezed your employees to the breaking point so they would cheat customers,'' she said. | "You squeezed your employees to the breaking point so they would cheat customers,'' she said. |
"You should resign. You should give back the money you took while the scam was going on," she added. | "You should resign. You should give back the money you took while the scam was going on," she added. |
Mr Stumpf has so far ignored calls for him to step down from his post in the wake of the scandal. | Mr Stumpf has so far 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 said. | "We recognise now that we should have done more sooner to eliminate unethical conduct or incentives that may have unintentionally encouraged that conduct," he said. |
Wells Fargo said it would be contacting every deposit customer across the country to see if their accounts were properly authorised. | Wells Fargo 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 if they want or need those cards. | It will also contact hundreds of thousands of customers with open credit cards to see if they want or need those cards. |
In the future, confirmation emails will be sent to customers within one hour of the opening of a new deposit account. | 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. |