Live Feed from the hearing:
Wells Fargo embattled CEO John Stumpf returns to Capitol Hill for the second time in 10 days, for a hearing with the House Financial Services Committee – the same committee which yesterday spoke to Janet Yellen – scheduled to start at 10 am EDT and likely to last much of the day. Despite Stumpf’s belated clawback of $41 million in unvested stock, which took place only after a tremendous congressional and populist outrage, his job is very much under threat and the bank is facing rising political pressure over the recent cross-selling scandal in which the bank opened 2 million unauthorized accounts, that has become a major issue in Washington and on Wall Street. His prepared remarks can be read here.
Earlier today the WSJ reported that three senators, Jeff Merkley (D., Ore.), Elizabeth Warren (D., Mass.) and Robert Menendez (D., N. J.) wrote a letter to SEC Chairman Mary Jo White urging the regulator to probe further into whether Wells Fargo and its senior officials ‘violated laws by misleading investors and firing whistleblowers while the bank oversaw the creation of millions of unauthorized, fraudulent accounts.’ As reported by the WSJ, the three senators, all members of the banking committee, said the situation at Wells Fargo does ‘justify an investigation into at least three types of securities law violations,’ according to the letter. The first focuses on whether the bank’s executives violated the internal-controls provision of the Sarbanes-Oxley Act by signing off on inaccurate financial reporting.
This post was published at Zero Hedge on Sep 29, 2016.
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