California Reinvestment Coalition

CRC Responds to Wells Fargo CEO Resigning

Published October 13, 2016 06:13

Responding to news that Wells Fargo’s CEO, John Stumpf resigned earlier today, Paulina Gonzalez, executive director of the California Reinvestment Coalition released this statement:

“Wells Fargo needs to restore the faith of consumers in the American banking system. This stems not only from the latest CFPB enforcement action related to this consumer account scandal but from the U.S. Department of Justice settled civil mortgage fraud claims against the bank with Wells agreeing to pay $1.2 billion and admitted, acknowledged and accepted responsibility for, among other things, that it did not disclose faulty mortgage loans to HUD.

Appointing a new CEO doesn’t necessarily restore the trust that has been broken so badly- especially as new reports emerge nearly every day about how long these fraudulent consumer account practices have been going on and how attempts to bring it to light were either ignored or quashed by senior executives at the bank.

There’s a lot of unanswered questions about how this was allowed to continue for so many years, and why lower level employees were scapegoated while senior executives like John Stumpf and Carrie Tolstedt were rewarded with millions in bonuses. We look forward to learning more from investigations by the Department of Justice and the Department of Labor and we renew our call to the Office of the Comptroller of the Currency to downgrade Wells Fargo’s CRA rating and to release the exam results from its CRA exam that happened back in 2012.

We hope Tim Sloan is serious about wanting to restore faith in the bank. We call on him to address these issues head on. He can start by dropping the forced arbitration clauses the bank is currently using against former employees and against customers who were harmed by these fake accounts.

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CRC has a membership of over 300 nonprofit organizations and public agencies across the State.