WASHINGTON — Rep. Maxine Waters, D-Calif., chairwoman of the House Financial Services Committee, slammed Wells Fargo chief executive Tim Sloan on Thursday, arguing that he should be dismissed from the bank.
The statement from Waters follows news Wednesday that Wells, which has been under fire for its fake accounts scandal and other alleged misdeeds, awarded Sloan a $2 million bonus for 2018, bringing his total compensation package up to $18.4 million for the year.
“Given Wells Fargo’s continuing failures, it is outrageous and wholly inappropriate that the bank has rewarded Mr. Sloan with a $2 million bonus for 2018, a year in which federal regulators and authorities capped the bank’s growth and fined the bank more than $3 billion for offenses such as improperly charging customers auto insurance and mortgage fees,” Waters said.
The statement follows Sloan’s testimony before the financial services panel Tuesday, which focused on the bank’s efforts to improve its risk management — a performance that Waters called “disappointing” on Thursday. She also reiterated her view, expressed Tuesday, that Sloan should be removed as head of the bank.
“It was very clear from Mr. Sloan’s testimony that Wells Fargo has failed to clean up its act,” said Waters. “Mr. Sloan shouldn’t be getting a bonus, he should be shown the door.”
At the same time, Waters’ comments Thursday followed an unusual statement from the Office of the Comptroller of the Currency issued Tuesday, suggesting that regulators also remain frustrated with the progress the bank has made in turning around its policies.
“We continue to be disappointed with Wells Fargo Bank N.A.’s performance under our consent orders and its inability to execute effective corporate governance and a successful risk-management program,” said a spokesman for the agency. “We expect national banks to treat their customers fairly, operate in a safe and sound manner, and follow the rules of law.”
Other top lawmakers have also called for Sloan's removal, including Sen. Elizabeth Warren, D-Mass., who has repeatedly said the CEO should be fired in light of the bank’s numerous problems.
Sen. Sherrod Brown, D-Ohio, ranking member on the Senate Banking Committee, joined critics pressing for Sloan's removal on Thursday, saying in a tweet that the executive "should be getting a pink slip, not a $18.4 million payday."
5300 front line workers lost their jobs because of the Wells Fargo scandal, but senior executives responsible for the fraud are walking away scot-free with millions in hand.
Tim Sloan should be getting a pink slip, not a $18.4 million payday.
https://t.co/BY8zZSYtyJ — Sherrod Brown (@SenSherrodBrown)
March 14, 2019
