4 Things To Watch As Well Fargo’s CEO Testifies

Details

Publish Date:
September 20, 2016
Author(s):
  • Nathan Bomey
Source:
USA Today
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Summary

Wells Fargo CEO John Stumpf will seek to contain the damage to his bank’s reputation Tuesday when he testifies before Congress on a scandal that has raised serious ethical questions about the company’s business practices.

Members of the Senate Banking Committee plan to grill Stumpf over the revelation that the company secretly opened more than 2 million accounts without customers’ permission, prompting a $185 million penalty as part of a civil settlement announced Sept. 8.

“It is astounding to me that eight years after the financial crash we have a large financial company that seems to be operating without a moral compass,” said Nora Freeman Engstrom, a Stanford Law School professor who studies ethics, in an interview.

“It is very hard to believe any company has 5,300 rogue employees — and that will be something that will be pressed, I’m sure, in the hearing,” Engstrom said.

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