More than two years after Wells Fargo & Co. erupted into scandals, Chief Executive Officer Tim Sloan returned to Capitol Hill to lay out his efforts to clean up the mess.
Sloan said the bank has made amends. "For a period of time, we were involved in financing one of the firms".
"We are poised to have significant hearings" said Waters at a recent press conference, adding she would not hesitate to bring "bad actor" CEOs before her committee. After citing a litany of Wells Fargo's abusive practices, Waters told Sloan "this conduct appears to persist". At one point he claimed that "no institution in this country has done more for diverse communities than Wells Fargo" ― quite a claim for a bank that has been separately sued by the cities of Chicago, Baltimore, Miami and Philadelphia for targeting black and brown borrowers with predatory loans.
At times on Tuesday Sloan expressed remorse over the bank's abuse scandals, noting in particular he felt "terrible" that some servicemen and women had been harmed by faulty products.More news: Powerball soars to almost $500 million
Warren recently wrote a letter to Fed Chairman Jerome Powell, saying the Fed should not lift the growth restriction on Wells Fargo until Sloan is ousted. Brad Sherman, another California Democrat, yelled at Sloan to end forced arbitration and support overdraft-protection legislation.
As Sloan spoke, screens mounted on the committee walls projected excerpts from an article published Saturday in The New York Times; it revealed that debt collectors working for Wells Fargo in Des Moines, Iowa, were tasked with making 33 calls an hour and recouping some $40,000 in unpaid debts over the course of a month. People quite literally shouldn't put any stock in them. Maloney asked, saying the gun industry is "literally killing" children. He said it isn't up to banks to enforce legislation that doesn't exist.
Sloan, who took the helm weeks after the first scandal emerged in September 2016, remained calm as he fielded questions.
Other scandals engulfing the biggest US mortgage lender have included selling auto insurance and other financial products to customers who didn't need them; charging service members higher rates on loans than allowed by law; and improperly selling complex financial products to retail investors. It has made fundamental changes to how it operates and its culture, he said under intense questioning. The assertions "are just wrong", Sloan said. "It's my job as CEO to make sure things change, and they are changing", he said before a House panel convened to examine the company's record of consumer abuses.
The board has credited him for rooting out and fixing past problems, addressing regulators' concerns, tightening internal oversight and taking other steps to improve earnings.More news: Watch The Trailer For 'The Disappearance of Madeleine McCann'
That may not be enough to soothe members of the House Financial Services Committee, led by Rep. Maxine Waters.
"Regulators hit Wells Fargo with a $1-billion fine previous year for forcing auto-loan customers into unneeded insurance policies and charging improper fees to some mortgage borrowers", The Times reports.
Last year, the bank paid $1 billion to federal regulators to settle allegations it mistreated consumers. In December, it settled with 50 states and the District of Columbia for $575 million.
The committee's ranking Republican Patrick McHenry made it clear that his party would not go soft on the country's fourth-largest USA bank as they sought evidence it had remedied customer abuses.
Ranking member, Rep. Patrick McHenry (R-NC) said questions still need to be answered and he wants to know more about how Sloan is changing the bank's culture.More news: R. Kelly appears in Chicago court in child support case