“The Problem Goes Much Deeper Than One CEO”
WASHINGTON, D.C. – Consumer advocacy group Allied Progress issued the following statement as Wells Fargo CEO Tim Sloan is reportedly stepping down immediately just days after facing intense scrutiny from the U.S. House Financial Services Committee over the bank’s infamous Phantom-accounts scandal and continued mistreatment of customers.
“While this is certainly good news for consumers after so many bad headlines about ongoing abuses at Wells Fargo, let’s be clear: the culture of greed at Wells Fargo and other major banks goes far beyond one CEO. Sloan stepping aside won’t magically solve what are obviously deep, systemic problems within these institutions that continue to test regulators and see what they can get away with. The fact that Sloan was rewarded with a $2 million bonus last year despite the growing list of scandals tells you all everything you need to know about how serious Wells Fargo’s leadership is about cleaning up its act. Inquiring minds want to know how big of a golden parachute he will enjoy on top of it,” said Jeremy Funk, spokesman for Allied Progress.
Added Funk: “We may never have seen this day had Wells Fargo not been made to answer for its misdeeds by the new Democratic majority running the House Financial Services Committee – something the previous Congress had no interest in doing. And judging by their plans to bring more CEOs before the committee, it’s clear their work to hold the big banks accountable is just the beginning. That’s even better news.”
Ahead of Sloan’s Congressional appearance this month, Allied Progress ran a full-page ad in the Washington Post Express and launched WellsFargoFacts.com detailing how Sloan’s ever-rising salary has only incentivized more consumer abuse.
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