Sen. Warren to Wells Fargo CEO: "You should be fired." (C-SPAN)

Thank you Senator Warren. Thank you mr. president mr. Sloane, when you were named CEO after the fake accounts scandal, you were asked why a career as a Wells Fargo insider like you made you the right person to fix the bank's core problems, and you said, "I quote because I've been making changes." for over 29 years at Wells Fargo, so I want to take a look at your time at Wells Fargo from 2011 to 2014, the heyday when Wells Fargo was scamming customers by opening fake accounts, you served as CFO and CFO with the who spoke You aggressively promoted Wells Fargo's ability to open new accounts.

I didn't know? I didn't know that I didn't know well. Here are the transcripts of all the investor earnings calls he participated in. From 2011 to 2014 I read them and on these calls no one, not even John Stumpf, who was CEO at the time, boasted more about Wells Fargo's ability and commitment to opening new accounts for existing customers on the April call 2011, for example. I think I checked that one you said: I can't wait to have a credit card in the wallets of every one of our creditworthy customers. Nothing about whether your customers wanted or needed a Wells Fargo credit card, all that mattered was opening new accounts, so while you were bragging to investors about opening new accounts on these calls from 2011 to 2014, so were you.

I personally owned approximately 2 million shares of Wells Fargo stock, is that correct? Senator, I don't remember how many shares I had, well, Farb, I'm very loud. In your SEC filing, I'm sure it's public, there are two million shares, so it sounds like you had something very good talking about Wells Fargo's ability to open new accounts, excite investors and, hey, if the stocks go up a dollar, you make a Then, in December 2013, nearly three years into his tenure as CFO, the LA Times published a long article about the relentless pressure Wells Fargo put on employees to open new accounts.

The article was based on a review of internal Wells Fargo documents filed in court. Interviewed with more than 30 current and former Wells Fargo employees, the article specifically said that employees had opened fake accounts in response to this pressure. Now you were interviewed for that article Mr. Sloan and you said quote I'm not aware of any dominant sales culture hmmm that's a really interesting phrase I'm not aware of any problems so when the LA Times reached out to you and showed you concrete evidence of a terrible problem with fake accounts at your bank launched an investigation into the issue before ignoring it, Senator First, regarding my comments in 2011.

I am proud of the credit card products we have. I am asking. I just asked him. He ruled it out. he said that i. I'm not aware of any problems. Did you open an investigation when someone presented evidence of fake accounts? I focus on the fact that in an interview, as I remember, with the LA Times they did not provide me with any information, it was shortly after that. that as I mentioned, you did not open the interview, you did not open an investigation into it, that's right, senator again, the LA Times did not provide me with any documentation, it was a phone call, did you read the article?

I read the article, yes, and then you immediately opened an investigation, they at the same time the article came out, that was a time when the community bank raised this issue with seniors, that is the time we started taking action, Let's talk about that time when you didn't investigate the fake accounts, but you boosted the stock price again by boasting about Wells Fargo's record number of new accounts on your next investor call. Now fast forward to 2016, two months before the fake accounts scandal became public, you were then the COO. At Wells Fargo, an interviewer asked him if he thought the bank had taken sales and cross-selling goals too far and his response was, quote no, the fundamental strategy that we have is not going to change, that is, in July 2016 , just before this opened, according to Wells Fargo's own investigation in July 2016, you knew that thousands of employees had been

fired

for opening fake accounts and other sales violations.

You knew aggressive cross-selling targets were to blame and yet you publicly said the bank had no problem. Senator, that is incorrect, could you read the full quote and we can go over the entire presentation because the employees are too far away? His answer was no, the fundamental strategy that we have is not going to change and that is a month and I was referring to the vision of the vision senator of our company every time I give a presentation or our team members start with our vision, which It's connecting people to our company culture, which is that our job is to meet our customers' financial needs and help them succeed.

Financially that's the context in which I made that statement since I became CEO. I have made fundamental changes to address the issues we are talking about today, Mr. Sloane, you were asked about the pressure on employees caused by the fake accounts scandal. We all know it's public now. You knew there was a problem and when they asked you about it, you lied. It's about personal responsibility. Wells Fargo deceived millions of people for years. The Fed

should

remove all current board members who served during the fake accounts scam and mr. Sloane, you say you've been making changes at Wells Fargo for 30 years but you enabled this fake account scam, got rich off it and then tried to cover it up at best you were incompetent at worst you were complicit and either way you

should

get

fired

Wells Fargo needs to start over and that won't happen until the bank gets rid of people like you who let it into this crisis.

Thank my Lord. President, could you answer yes? It may be okay. I want the same amount of time, senator. First, a couple of things and I'll address your criticisms in a moment, but first let's talk about the board. I think the board has taken very important steps. In terms of a thorough independent investigation that has been made public, that's number one, number two, the board has taken very strong action in terms of executive accountability which, unfortunately, is one of the highest and corporate in history of the United States, is again unfortunate, so I do not believe that your criticism on board is accurate as far as I am concerned again.

I think the reason I am the right person to lead this company today, despite the criticism, is because I have been making changes in this company for 30 years. I made mistakes. It certainly hasn't been perfect, but I think having that knowledge of the company, having the ability to make the change, the actions that I have taken since I became CEO 11 months ago have made a fundamental change in this company, so no I am afraid of I make difficult decisions when necessary and I have the support of 270 people, that is why I believe I am the right person.

Can I make a brief comment there? I know we're done, but you really want to say it. Are you kidding? Know? Look, you've been there for 30 years and every one of my colleagues on both the Republican side and the Democratic side that have spoken so far have talked about a broken culture at Wells Fargo have talked about the fact that the problem starts with the leadership, the people who were there and ran Wells Fargo during the time of a scam that lasted years and multiple scams, as our president pointed out that those people should not be left in charge of this business and when he promoted exactly what was wrong with this.

You banked over and over again, you went to the stock market and bragged about it, you personally made money from it when you were asked about it, you didn't tell the truth and you tried to cover it up. Wells Fargo is not going to change with you in charge