Morning Business Outlook: Former Wells Fargo CEO John Stumpf has been banned for life from the banking industry and must pay $17.5 million in fines; Tinder adds new features to protect people from dangerous dates and fake profiles.
House Financial Services Chairwoman Maxine Waters referred former Wells Fargo CEO Timothy Sloan to the Department of Justice, claiming that Sloan made false statements to Congress in testimony last year.
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Waters asked the DOJ to review Sloan’s March 2019 testimony and take “appropriate” action. At the time, he testified that the bank was in compliance with consent orders with the government in the wake of a sales scandal.
Sloan stepped down from his post and retired last June.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WFC | WELLS FARGO & COMPANY | 34.73 | +2.25 | +6.93% |
Chair Elizabeth Duke and board member James Quigley both resigned effective Sunday after a congressional report, released last week, accused Wells Fargo of not living up to the terms of settlements in its sales scandal.
The bank has admitted that unrealistic sales goals led to millions of accounts being opened without customers’ knowledge or under false pretenses.
Timothy Sloan
Newly instated CEO Charles Scharf on Tuesday blamed the company’s alleged consumer abuses on a “broken” culture and acknowledged the bank needs to do more to address its shortcomings.
WELLS FARGO AGREES TO $3B SETTLEMENT IN FAKE ACCOUNTS CASE
Duke and Quigley said they worked to change the bank’s culture and processes once they learned about consumers being taken advantage of.
REUTERS/Rick Wilking/File Photo (Reuters)
“We believe that our decision will facilitate the bank’s and the new CEO’s ability to turn the page and avoid distraction that could impede the bank’s future progress,” Duke and Quigley said in a statement.
FORMER WELLS FARGO CEO BARRED FROM INDUSTRY, OTHER EXECS CHARGED FOR ROLE IN PHONY ACCOUNT SCANDAL
Former Bank of America chief financial officer Charles Noski was named the new board chair.
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FOX Business’ Megan Henney contributed to this report.
