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Home>Wells Fargo CEO's Testimony: Five Things to Know -- WSJ

Wells Fargo CEO's Testimony: Five Things to Know -- WSJ

Wells Fargo CEO's Testimony: Five Things to Know -- WSJ

10/03/2017

 By Emily Glazer 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (October 3, 2017).

Wells Fargo & Co. Chief Executive Timothy Sloan has a lot riding on Tuesday morning.

A couple of weeks shy of his first anniversary in the job, Mr. Sloan is set to testify for the first time as CEO in front of the Senate Banking Committee Tuesday at 10 a.m. ET.

The last time the bank's chief did that, he was grilled over the bank's sales-practices scandal and resigned less than a month later.

Mr. Sloan, who filled that void last October when former CEO John Stumpf left the bank, is expected to answer questions related to the scandal, especially updated information that the bank potentially opened 3.5 million customer accounts without their knowledge, up from the initial estimate of up to 2.1 million accounts.

A three-decade veteran of the bank, Mr. Sloan will likely also address more recent problems in its consumer-lending unit around certain auto-insurance charges and mortgage products. In recent weeks, the San Francisco bank has already released details about those issues, so the focus likely will be more on how Mr. Sloan reacts to tough questions expected from the likes of Sen. Elizabeth Warren (D, Mass.).

Mr. Sloan is planning to take a different tack than his predecessor. For one thing, more than a year has passed since the sales-practices scandal erupted, so he has had more time to prepare than Mr. Stumpf did.

Wells Fargo spokeswoman Jennifer Dunn said the bank welcomes the opportunity to update the committee on steps it has taken to fix problems. But it won't be easy, as Wells Fargo hasn't yet shaken free from the sales issues or more recent problems.

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