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Lawmakers lambaste Wells Fargo CEO John Stumpf over phony accounts

By Amy R. Connolly
Wells Fargo CEO John Stumpf on Thursday faced another day of attacks from the House Financial Services Committee over allegations of fraudulent banking practices. Photo by Pete Marovich/UPI
Wells Fargo CEO John Stumpf on Thursday faced another day of attacks from the House Financial Services Committee over allegations of fraudulent banking practices. Photo by Pete Marovich/UPI | License Photo

WASHINGTON, Sept. 29 (UPI) -- Wells Fargo CEO John Stumpf faced another day of blistering attacks from the House Financial Services Committee over allegations of fraudulent banking practices, denying there was an "orchestrated effort" to defraud customers.

Stumpf said the embattled company would be terminating employee sales goals by Friday, thus ending incentives for employees to create false bank accounts to meet quotas. He fended off allegations he sold company shares in 2013 because he knew the scandal would rock stock prices and assertions he should be jailed for his role.

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"I am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members, and to the American public," Stumpf said. "I want to apologize for violating the trust our customers have invested in Wells Fargo. And I want to apologize for not doing more sooner to address the causes of this unacceptable activity."

This is the second time in a matter of weeks Stumpf has faced lawmakers after some 2 million falsified deposit accounts were created by employees to meet quotas and sales bonuses. More than 5,300 employees have been fired in the scandal. Stumpf has agreed to give up $41 million of pay. The bank has paid nearly $200 million as a result of several investigations.

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House committee members indicated Thursday they continue to be frustrated with the answers they've gotten. Rep. Mike Capuana, D-Mass., asked Stumpf why he shouldn't be sent to jail and congratulated the businessman for unifying lawmakers over their disgust with Wells Fargo.

"Your problem is coming," Capuano said. "You think today is tough? It's coming. When the prosecutors get a hold of you, you're going to have a lot of fun."

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