Home Daily Blitz Wells Fargo CEO Denies Orchestrated Fraud In Accounts Scandal

Wells Fargo CEO Denies Orchestrated Fraud In Accounts Scandal


cnn-articleThe following is an excerpt from Matt Egan and Chris Isidore | September 20, 2016 | CNN.com |

Wells Fargo CEO John Stumpf plans to apologize to customers Tuesday for more than 2 million fake accounts opened in their names, but he will deny any orchestrated fraud by bank management.

In testimony to the Senate Banking Committee, Stumpf will say that the scandal pains him more than any problem faced by the bank in his 35 years there, and that he accepts responsibility.

"I am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members, and to the American public," he will say, according to prepared remarks obtained by CNNMoney.

"I do want to make very clear that there was no orchestrated effort, or scheme as some have called it, by the company," he plans to say.

Wells Fargo (WFC) employees have said they were pressured to meet unrealistic sales goals and that they opened the bogus accounts so they wouldn't lose their jobs.

Stumpf plans to say the fake accounts cost the bank both money and satisfied customers. He will say the scandal goes against "our values, ethics and culture and runs counter to our business strategy."

Stumpf has refused to step down, despite calls for him to do so. He is likely to face harsh criticism from banking committee members.

For more visit: CNN.com