Wells Fargo & Co. has told some employees to stop cross-selling products to customers, while the Senate Banking Committee’s Republican majority said late Monday it plans a hearing into the bank’s sales practices.
The committee intends to question Wells Fargo Chief Executive John Stumpf about the events that led the bank to pay a $185 million fine and enter into an enforcement action with two federal regulators and a local official. The committee has already informed Mr. Stumpf that his presence was requested for the Sept. 20 hearing, according to Torrie Matous, a spokeswoman for the banking committee’s majority, led by Sen. Richard Shelby of Alabama.
Dennis Kelleher, chief executive of Washington-based financial-advocacy group Better Markets, said the Wells Fargo episode seems “exactly designed” for clawback provisions under the bank’s own guidelines. He said the bank should reclaim any pay attributable to fraudulent conduct. “If you don’t do that, then you incentivize your employees to break the law,” he said.
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