Big banks kick off earnings season this week – Wells Fargo Securities senior analyst Mike Mayo discusses what we should be looking out for.
A Congressional report released on Wednesday says Wells Fargo is not living up to the terms of settlements in its sales scandal.
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In addition, the report says regulators aren’t working heard enough to enforce the agreements.
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, and Congressman Al Green (D-TX), Chairman of the Subcommittee on Oversight and Investigations, released the report.
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The report is part of a year-long probe and comes ahead of hearings next week.
Wells Fargo’s new chief executive, Charles Scharf, and chair, Betsy Duke will testify before the committee for the first time.
The investigation says Wells Fargo board and management did not take seriously settlements the bank agreed to.
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“This Committee staff report shines a much-needed spotlight on ‘The Real Wells Fargo,’ a reckless megabank with an ineffective board and management that has exhibited an egregious pattern of consumer abuses,” said Chairwoman Waters. “Last year, I made it clear that under my leadership, the Committee is putting consumers first and holding financial institutions accountable.”
FOX Business.com has contacted Wells Fargo for a comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WFC | WELLS FARGO & COMPANY | 41.40 | +0.87 | +2.15% |
Financial regulators knew about serious, enterprise-wide deficiencies at Wells Fargo for years without taking public enforcement action.
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The report also blames the bank’s board saying it failed to ensure management could competently address the company’s risk management deficiencies.
The report also says former Wells Fargo CEO Tim Sloan gave “inaccurate and misleading testimony” to Congress in March 2019.
Among the committee’s recommendations, require greater transparency regarding bank supervision and how banks treat consumers.
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Wells Fargo has paid out more than $7 billion in fines and penalties related to the scandal since 2016.
