On August 31, 2017, Wells Fargo (WFC) announced it completed an expanded third-party review of retail bank accounts which increased the number of potentially unauthorized consumer and small business accounts to 3.5 million from 2.1 million. In addition, an additional 528,000 accounts had potentially unauthorized online bill pay enrollments.
Nearly a year ago on September 20, 2016, WFC CEO, John Stumpf, testified in front of the Senate Banking Committee regarding the “cross-selling” scandal which also cost 5,300 employees their jobs. WFC never provided the “cross-sell” metric in a table format in public filings, and as a result the data cannot be derived from legacy financial research platforms.
During the hearing, Senator Elizabeth Warren highlighted:
- The word “cross-sell” appeared in every transcript from 2012 through 2014.
- Stumpf first mentioned “cross-sell” in 2010 AR, highlighting he picked the target 8. He picked the target 8 because it rhymed with great.
- The correlation between the WFC stock price and the number of times “cross-sell” was mentioned.
- All 12 printed transcripts were submitted as evidence.