CNNMoney, September 10, 2019: The two-year Wells Fargo horror story just won’t end
What sounded at first like a run-of-the-mill bank settlement — a $185 million payment to atone for “sales practices” — has morphed into a cascade of scandals that has rocked one of America’s most storied banks to its core.
Wells Fargo remains in legal hot water beyond the Federal Reserve. Federal government agencies, including the Justice Department, SEC and Labor Department, and state attorneys general have launched inquiries into Wells Fargo’s sales tactics, according to recent SEC filings that described the probes as at “varying stages.”
In a statement to CNNMoney, Wells Fargo said it’s “focused on closely examining our company, fixing issues we find and making things right for all our stakeholders.”
Wells Fargo highlighted the progress it’s made by completing an exhaustive third-party review, revamping its sales goals and reaching an $142 million class-action settlement with customers.
“While there’s more work to do, rebuilding trust with our team members, customers, communities, shareholders and regulators remains our top priority,” Wells Fargo said.
That has led some to question about whether Sloan, a three-decade veteran of the bank, is the right person to transform Wells Fargo. Democratic Senator Elizabeth Warren, another vocal Wells Fargo critic, loudly called for Sloan’s resignation a year ago.
John Taylor, the CEO of the National Community Reinvestment Coalition, an alliance of 600 activist groups that pushes banks to loan to under-served communities, credited Sloan with launching a stakeholder advisory council last year that Taylor sits on.
“It’s the real deal. We believe it’s an honest attempt to be a better bank,” said Taylor, who is not compensated for the role.
However, Taylor conceded he’s worried about “another shoe to drop” at Wells Fargo and can’t say for sure if Sloan is the right person for the job.
“I’m happy to give him a chance,” Taylor said.
