Wells Fargo CEO Takes Another Beating from Congress

Wells Fargo CEO John Stumpf was grilled on Capitol Hill on Thursday over his handling of a major scandal within the company involving employees opening fraudulent accounts. Rep. Maxine Waters, the top Democrat on the House Committee on Financial Services, said the bank should be broken up, calling the scandal “some of the most egregious fraud we have seen since the foreclosure crisis.” GOP Rep. Mick Mulvaney said the company has done more damage to the market and the industry than to its own business, while Rep. Jeb Hensarling, the committee’s chairman, said he wishes he didn’t have a mortgage with the bank. Others called on Stumpf to resign. Wells Fargo’s stock has lost 11 percent since the scandal broke earlier this month. His company’s battles with Congress came to national attention earlier this month when Sen. Elizabeth Warren chided him before a Senate hearing, calling for a criminal investigation of his “gutless” leadership in overseeing the company’s controversial account-creating scandal.