John Stumpf got no sympathy on Capitol Hill after he apologized for his bank's aggressive sales tactics and said he would take full responsibility. Fred Katayama reports.
Wells Fargo CEO John Stumpf faced a barrage of hostile questions from a Senate panel. He apologized for his bank's aggressive sales tactics that produced millions of bogus customer accounts generated by his employees. SOUNDBITE: JOHN STUMPF, CEO, WELLS FARGO, (ENGLISH) SAYING: "I accept full responsibility for all unethical sales practices in our retail banking business. And I am fully committed to fixing this issue." But that didn't mollify the lawmakers. Committee member Senator Elizabeth Warren demanded Stumpf step down. SOUNDBITE: ELIZABETH WARREN, U.S. SENATOR (ENGLISH) SAYING: "When it all blew up, you kept your job, you kept your multimillion dollar bonuses, and you went on television to blame thousands of $12 an hour employees who were just trying to meet the cross sales quotas that made you rich. This is about accountability. You should resign. You should give back the money that you took while this scam was going on, and you should be criminally investigated." 11:33:29 Stumpf hasn't fired any senior executives, but 5300 low-ranking employees lost their jobs. Analyst Eric Wasserstrom of Guggenheim Securities: SOUNDBITE: ERIC WASSERSTROM, ANALYST, GUGGENHEIM SECURITIES, (ENGLISH) SAYING: "Certainly, it seems that the board is going to be under some pressure to really review things, compensation practices, potentially clawbacks. And I imagine that there's going to have to be some management responsibility at a level much higher than the branch manager level which is where most of it lies now." Stumpf said customers would be made whole, but today's Congressional criticism suggests it may take a whole lot of time before the bank can put this issue to rest.