Wells Fargo has suffered from a broken culture and failed leadership but can turn itself around, its new CEO told US lawmakers in the bank’s latest pitch to emerge from years of scandal and controversy. Charles Scharf is the third Wells Fargo chief executive in three years to try to convince the US Congress that he can turn around the troubled bank.
Wells Fargo is an important financial institution that was badly managed but is undergoing a major overhaul, Scharf told the committee. “People can trust Wells Fargo to do the right thing,” he told the committee.
The Financial Services Committee last week released a more than 100-page report that found the bank repeatedly failed to live up to regulators’ demands that it repay consumers and didn’t aggressively address its cultural problems, despite public promises. Two of the bank’s board members resigned Sunday after the report showed they had resisted becoming involved in addressing Wells Fargo’s problems.
On Tuesday, Waters asked the Justice Department to investigate statements former Wells Fargo CEO Tim Sloan made to the committee last year, which the committee report called “inaccurate and misleading.”
“Because this matter involves a potential violation of a federal criminal statute, I am requesting that the DOJ review Mr. Sloan’s testimony,” Waters said in a letter to Attorney General William P. Barr. The Justice Department declined to comment.