(21 Sep 2016) The Chief Executive Officer (CEO) of Wells Fargo apologised before harshly critical senators Tuesday for betraying customers' trust in a scandal over allegations that employees opened millions of unauthorised accounts and moved money into them.
John Stumpf showed contrition in testimony to the Senate Banking Committee, saying he is "deeply sorry" that the bank failed to meet its responsibility to customers and did not act sooner to stem what he called "this unacceptable activity."
He promised that the bank will contact every affected customer.
The bank sales staff had a goal of getting each customer to have eight different accounts with the bank - up from the prevailing average of six.
Under the settlement, Wells Fargo neither admitted nor denied the allegations. It later said it plans to eliminate the sales targets by January 1. Some 5,300 Wells Fargo employees have been dismissed.
In questioning by Senators, Stumpf would not admit that what employees of the bank did would be described as fraud.
Senator Elizabeth Warren went so far as to define Stumpf's subsequent actions as "gutless leadership."
The panel also plans to quiz regulators from the Consumer Financial Protection Bureau, the Treasury Department's Office of the Controller of the Currency and the Los Angeles City Attorney's Office.
Senators are examining their role in the debacle and why the sales practices went on for years before the regulators cracked down.
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