New Wells Fargo CEO, Charles Scharf, testifying before the House Financial Services Committee, regarding the findings of a House report on behaviors at Wells since the time of the discovery of the 3.5 million fake accounts, give or take a few thousand here and there.
The e-mails and conduct in the report reveal a bank looking only to have its cap on growth eliminated. Here’s a classic quote from the now former chief risk officer,”If any of the $200MM [for customers injured due to unauthorized accounts] is left over, we promise to give it to charity—only after the CFPB and the OCC let us out of the consent orders. If they do not, no donation. Put the onus back on them.” Yes, that’s where the onus should be, after all.
So, to get out from under the cap and their consent decree, the chief risk officer used charitable donations as a bargaining chip. Remember all those ads Wells was running about its dedication to social causes and the extent of its donations? This is one scary crowd.
Here’s wishing Mr. Scharf well in his efforts at the bank. Between reading the baseball commissioner’s report on the Astros and this latest report on Wells Fargo, the Barometer has her head shaking like a baseball bobble figure on a dashboard.