Maloney Statement on Wells Fargo CEO Resignation

Oct 12, 2016
Press Release

NEW YORK—Today, Congresswoman Carolyn B. Maloney (NY-12) released the following statement in response to the resignation of Wells Fargo CEO, John Stumpf. Maloney, the Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, had called on Mr. Stumpf to resign following his appearance before the House Financial Services Committee on September 29, 2016.

“Change is clearly needed at Wells Fargo," Rep. Maloney said, "and while Mr. Stumpf stepping down is a good first step, this does not solve the problem. Wells Fargo must commit to fully compensating all of its customers who were harmed by this fraud, and to comprehensively reforming its culture to ensure that this can never happen again. This should not stop Congress from exercising its robust oversight and continuing its investigation into this massive fraud.”

 

Background

On September 30, 2016, Rep. Maloney wrote to Mr. Stumpf to demand that Wells Fargo extend its review of fraudulent account creation to at least 2007, based on evidence she submitted during the House hearing. Rep. Maloney had found an amended complaint and a plaintiff’s reply from a 2009 Montana court case with allegations that the fraudulent behavior currently under review occurred in 2007.

Rep. Maloney also questioned the Wells Fargo CEO about the suspicious timing regarding his selling of Wells Fargo stock in late 2013. The Congresswoman entered Stumpf’s Form 4 filing into the record, which shows that on October 30th, 2013 — right around the time that Stumpf first learned about the fraudulent accounts — he sold $13 million worth of Wells Fargo stock on the open market, the largest open-market sale of Wells Fargo stock that he made in his 9 years as CEO.