On Tuesday, Wells Fargo CEO Timothy Sloan appeared before the Senate Banking Committee on Capitol Hill regarding the bank's creation of unauthorized accounts.
What follows is a full transcript of the exchange between Senator Elizabeth Warren and Sloan during Tuesday's hearing.
Senator Elizabeth Warren: I want to take a look at your time at Wells Fargo. From 2011 to 2014, at the height of when Wells Fargo was cheating customers by opening false accounts, you served as the chief financial officer. As CFO, you spoke to potential Wells Fargo investors a lot. On those calls, you aggressively promoted Wells Fargo ability to open up new accounts, didn't you?
Tim Sloan: No. I didn't.
Warren: No, you didn't?
Warren: Well, here are the transcripts from all of the investors' earnings calls that you participated in from 2011 to 2014. I've read through them and on these calls no one, not even John Stumpf who was the CEO at the time, bragged more about Wells Fargo's ability and commitment to open new accounts for existing customers. In the April, 2011, call for example, I think I've marked that one, you said, 'I can't wait to get a credit card in every one of our credit worthy customer's wallets.' Nothing about whether your customers wanted or needed a Wells Fargo credit card. All that mattered was opening new accounts. So while you were bragging to investors, about opening new accounts on these calls, from 2011 to 2014, you also personally owned roughly 2 million shares of Wells-Fargo stocks. Is that right?
Sloan: Senator, I don't recall how much stock I owned in Wells Fargo. I'm a very proud shareholder.
Warren: Well, it's actually in your SEC filing.
Sloan: Sure! It's public. It's all out there.
Warren: So it looks like you had a really good thing going. Talk up Wells Fargo's ability to open new accounts, get investors excited, and hey, if the stock goes up by a dollar, you make a cool $2 million bucks. Then in December 2013, almost three years into your time as CFO, the LA Times published a large article on the relentless pressure Wells Fargo put on employees to open new accounts. The article was based on an internal review of Wells Fargo documents, court filings, interviews with more than 30 current and former Wells Fargo employees. The article specifically said that employees had opened fake accounts in response to this pressure. Now, you were interviewed for that piece, Mr. Sloan, and you said, 'I'm not aware of any overbearing sales culture.' Hmm, that is really interesting phrasing: 'I'm not aware.' So when the LA Times came to you with concrete evidence of a terrible problem with fake accounts at your bank, did you launch an investigation into the issue before brushing it off?
Sloan: Senator, as it relates to my comments in 2011, I'm proud of the credit card products that we have at Wells Fargo.
Warren: That's not the question I'm asking. I just asked — you brushed it off. You said, 'you're not aware of problem.' Did you open an investigation when someone laid out evidence of fake accounts?
Please check back for the entire transcript.
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