Wells Fargo CEO to take ‘full responsibility’ in Senate hearing: NY Times

John Stumpf, CEO of Wells Fargo, participates in a panel at the 2015 Fortune Global Forum in San Francisco, California November 2, 2015. REUTERS/Elijah Nouvelage

Wells Fargo & Co’s (WFC.N) chief executive, John Stumpf, will tell U.S. senators on Tuesday that he is “deeply sorry” for selling customers unauthorized bank accounts and credit cards and that he would take “full responsibility” for the unethical activity, the New York Times reported on Monday.

Stumpf will strike a contrite tone in a testimony over the fake accounts at a Senate Banking Committee hearing on Tuesday morning, the New York Times said, citing a copy of his prepared remarks. (nyti.ms/2cUyZMP)

Wells Fargo, the country’s third-largest bank by assets, is embroiled in a scandal over the opening of sham accounts and was sued on Friday by customers who accused the bank of fraud and recklessness for its behavior.

The bank said it has fired 5,300 people over the matter and would eliminate sales goals in its retail banking on Jan. 1, 2017.

Stumpf will tell lawmakers that the illegal activity carried out was not part of any “orchestrated effort, or scheme, as some have called it, by the company,” New York Times wrote quoting the testimony.

“We never directed nor wanted our employees, whom we refer to as team members, to provide products and services to customers they did not want or need,” the Times quoted Stumpf as saying.

Wells Fargo declined to comment.

Stumpf will also acknowledge that the bank failed to do enough to stop the behavior from continuing, the Times said.

(Reporting by Anet Josline Pinto in Bengaluru; Editing by Mary Milliken)



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