Wells Fargo's illegal sales practices go back to 2007, Rep. Maloney says

Sep 29, 2016
In The News

Rep. Carolyn Maloney (D-N.Y.) pressed Wells Fargo chief John Stumpf on his sale of $13 million worth of the bank’s stock on Oct. 30, 2013, around the time he learned of the fake accounts scandal.

“Did you dump the stock after you found out about the fraudulent accounts? Because it seems like the timing is very, very suspicious and it raises serious questions,” she said to Stumpf at a House Financial Services Committee hearing.

After trying to deflect the question, Stumpf admitted he sold the shares but said it was “without any view” toward the scandal.

Maloney also pushed Stumpf to review accounts from as early as 2007, pointing to a Montana lawsuit that alleged fraudulent sales practices going back to that year.

"Now we have evidence of illegal sales practices going back to 2007. Will you agree to extend the review period to 2007?" Maloney asked.

Stumpf would not commit to extending the review.

He said that the bank would compensate consumers if there's evidence they had fake accounts created before 2009, but that the review would only go back to 2009.