The $41 million in compensation Wells Fargo CEO John Stumpf will forfeit over his bank's sales scandal didn't mollify angry lawmakers in Washington. Fred Katayama reports.
Wells Fargo CEO John Stumpf took a lashing on his second trip to Capital Hill this month over his bank's sales scandal. House Financial Services Committee chairman Jeb Hensarling set the tone by saying he wished he hadn't owned a mortgage from Wells Fargo. SOUNDBITE: U.S. REPRESENTATIVE JEB HENSARLING, CHAIRMAN, HOUSE FINANCIAL SERVICES COMMITTEE, (ENGLISH) SAYING: "If I was in the position to pay it off, I would because you have broken my trust and you have broken the trust of millions of others, and it will be a long, long time to earn that trust back." Stumpf told the committee Wells Fargo would eliminate sales quotas for branch employees starting Saturday --- three months earlier than planned. It was clear the bank's move to claw back $41 million of Stumpf's compensation didn't mollify the lawmakers. Congresswoman Carolyn Maloney asked if he sold $13 million of Wells Fargo stock in 2013 after finding out that the bank had opened fake customer accounts. SOUNDBITE: U.S. REPRESENTATIVE CAROLYN MALONEY (ENGLISH) SAYING: "Did you sell those shares or not?" SOUNDBITE: JOHN STUMPF, CEO, WELLS FARGO, (ENGLISH) SAYING: "I sold those shares, and I sold them with proper approvals with no view about anything that was going on with sales practices or anything else." Rafferty Capital Markets analyst Dick Bove says an overhaul to fix the bank will take years. SOUNDBITE: DICK BOVE, ANALYST, RAFFERTY CAPITAL MARKETS, (ENGLISH) SAYING: "What we're talking about is a series of major changes that have to be made in the company's corporate governance. I think the human resources department has to be shaken up from top to bottom." He warns Wells Fargo's stock will go lower as it faces more probes or action from various government agencies.