Wells Fargo CEO Sloan to Apologize, Explain Bank's Accountability in Congressional Hearing--Testimony
October 02 2017 - 12:50PM
Dow Jones News
By Andrew Ackerman and Emily Glazer
Wells Fargo & Co. Chief Executive Timothy Sloan is expected
to apologize for the bank's phony account scandal Tuesday and tell
Senate lawmakers that his firm has rehired about 1,800 employees
who left over shortcomings with its sales practices, according to
written testimony reviewed by The Wall Street Journal.
"I apologize for the damage done to all the people who work and
bank at this important American institution," Mr. Sloan is expected
to tell the Senate Banking Committee.
Regulators last year fined Wells Fargo $185 million for
"widespread illegal" sales practices that included opening as many
as two million deposit and credit-card accounts without customers'
knowledge. A broader review by the company has since revealed the
number is potentially 3.5 million accounts, and uncovered abuses in
the bank's auto-lending business.
Mr. Sloan is set to testify a few weeks short of his first
anniversary in the bank's top job; he assumed the CEO's role last
October after former CEO John Stumpf abruptly retired in the wake
of congressional hearings immediately after sales-practices scandal
emerged.
Mr. Sloan is expected to tell lawmakers the company has rehired
more than 1,780 employees who left the company during the years of
lofty sales goals. The settlement of the sales practices last year
revealed that Wells Fargo over a five-year period had fired 5,300
employees for what it said was improper behavior. The rehired
people weren't from that group of dismissed employees, though.
Write to Andrew Ackerman at andrew.ackerman@wsj.com and Emily
Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
October 02, 2017 12:35 ET (16:35 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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