Sens. Elizabeth Warren, D-Mass., Sherrod Brown, D-Ohio, Jack Reed, D-R.I., Robert Menendez, D-N.J., Bernie Sanders, I-Vt., Jeff Merkley, D-Ore., Kirsten Gillibrand, D-N.Y., and Mazie Hirono, D-Hawaii, sent the letter two days after many of them grilled Stumpf for almost three hours in a Senate Banking Committee hearing on Capitol Hill.
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Stumpf has come under fire for sales abuses at his bank where employees opened as many as 2 million accounts in customers’ names without their authorization. Chief Executive John Stumpf to a Fed advisory council that consults with the central bank’s Board of Governors.
Wells Fargo agreed to pay $185m for its “cross selling” failures, which involved opening almost two million unauthorised customer accounts, earlier this month.
Wells Fargo told CNBC that “John made a personal decision to resign as the Twelfth District’s representative to the Federal Advisory Council”.
The Department of Justice and Federal Bureau of Investigation also have launched probes into the bank’s actions following Wells’ settlement with the CFPB and Los Angeles city attorney. Since 2011, Wells Fargo profited from this illegal scheme by transferring money out of consumers’ existing accounts and rerouting them to new, unauthorized accounts, causing the consumers to be hit with surprise fees and other charges. At the hearing, Sen.
It would be ironic if the Federal Reserve, a key federal banking regulator tasked in part with ensuring the fair and equitable treatment of consumers in financial transactions, continued to receive special insights and recommendations from senior management of a financial institution that just paid a record-breaking fine. for “unfair” and “abusive” practices. On Thursday, Angus King, an independent senator from ME, sent the San Francisco Fed a letter urging it not to reappoint Mr Stumpf to the FAC panel. Members serve one-year terms, which begin in January of each year.
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The House of Representative’s Financial Services Committee opened an investigation into the bank’s alleged misconduct as well as “the role of Washington regulators in monitoring and investigating” the alleged misconduct.
