Rep. Stephen Lynch: Wells Fargo CEO John Stumpf Should Resign | Power Lunch | CNBC — Transcript

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1. 0:00we did learn this morning that we have
2. 0:01uh three separate us attorneys that have
3. 0:04uh issued subpoenas to to Wells Fargo so
4. 0:07that that could be coming so you want to
5. 0:09see somebody put behind bars is that is
6. 0:11that the bottom line here well I I would
7. 0:13like to see accountability and and
8. 0:15wherever the law leads I know that uh
9. 0:18look this is a this is a huge fraud case
10. 0:21uh you know I know they fired 5,300
11. 0:24employees but but this is a case where
12. 0:26the employees actually you know
13. 0:28falsified uh accounts they actually uh
14. 0:32filled out credit cards and uh applied
15. 0:35fake pins and and uh email addresses so
16. 0:39that they could collect these fees what
17. 0:41does accountability look like
18. 0:42Congressman to you well ites what does
19. 0:44that mean in this context I I just I'm
20. 0:47curious well I I I think eventually uh
21. 0:50Mr stump should resign I I I think he
22. 0:53should uh he has been in charge this
23. 0:56whole time he's the CEO and and the uh
24. 0:59chairman of the board it doesn't look
25. 1:00like any of the suspicious activity
26. 1:02reports that are due from his office uh
27. 1:05in connection with a lot of this fraud
28. 1:07were filed uh with treasury uh we
29. 1:09haven't seen them we've been in contact
30. 1:11with with treasury so there have been a
31. 1:13number of failings he's also diminishing
32. 1:16uh the the level of fraud here by saying
33. 1:18it was only 5,300 employees out of
34. 1:21100,000 which is the wrong approach to
35. 1:23take when you think about the the
36. 1:25seriousness uh these were customers that
37. 1:28were defrauded and I think there's a
38. 1:31special uh you know D duty of loyalty
39. 1:34that they owe to their own customers sir
40. 1:36Michelle here you've been tweeting uh
41. 1:38and talking about how proud you are of
42. 1:40the Consumer Financial Protection Bureau
43. 1:42the cfpb but they actually never found
44. 1:45this fraud it wasn't them it was a
45. 1:47reporter then it was an official in La
46. 1:49they just kind of rode the gravy train
47. 1:52of this why do they deserve any credit
48. 1:54whatsoever it's it's a huge new
49. 1:56bureaucracy that's going to cost a lot
50. 1:57of money and yet they finds but actually
51. 2:01didn't do the work well they they did do
52. 2:03the work obviously this was an LA issue
53. 2:06originally the the people who were uh
54. 2:09complaining were Los Angeles uh uh
55. 2:12residents they complained uh to the LA
56. 2:16uh attorney and the the City attorney
57. 2:19and and he did he did or she did uh
58. 2:22bring the first case on the reporter who
59. 2:24actually got it first right right so so
60. 2:27that that that was the that was the
61. 2:28first step it was a local issue and then
62. 2:31uh when the when uh the uh consuma
63. 2:34Financial Protection Bureau get involved
64. 2:36they have a wider uh jurisdiction this
65. 2:39is not just an LA case this is a this is
66. 2:41a national case this is up to 2 million
67. 2:44accounts so obviously you need someone
68. 2:46with a a national scope which the LA
69. 2:49attorney does not have con there is no
70. 2:51failure in your view on the part of reg
71. 2:53I mean it cannot be perceived as any
72. 2:54sort of a failure or shortcoming of the
73. 2:57agency if they take 3 years to follow
74. 2:59follow up on work that was first exposed
75. 3:01by a hardworking reporter in the LA
76. 3:02times and then later an LA City official
77. 3:05to then come finally to make this a
78. 3:07national story they've done a wonderful
79. 3:09job and and it's a huge win which is
80. 3:11exactly what you tweeted it redoubles my
81. 3:14faith in those agencies so let me get
82. 3:16this right Wells fago does what they do
83. 3:19and you're attacking the agencies that
84. 3:21are bringing we're not in any part
85. 3:24attacking Fargo we're just saying are
86. 3:26there any other places in in the
87. 3:28bureaucracy in the agency that should
88. 3:30also be held accountable for allowing
89. 3:32this to go on for so
90. 3:35long Wells Faro came back and said on
91. 3:38multiple occasions this goes back to
92. 3:392011 that they had fixed the problem
93. 3:41they said first they said we H we fired
94. 3:43a th people then the next year they
95. 3:45fired 1,200 people so you know that's
96. 3:49what the agencies are responding to they
97. 3:51looked like they were actually
98. 3:53addressing the problem but it just kept
99. 3:55going going going now we're in year five
100. 3:57and we've got 5,300 employees that they
101. 3:59fired but but they haven't really
102. 4:01corrected the problem that that's that's
103. 4:03the issue here and and sure sure we're
104. 4:05going to hear from we're going to hear
105. 4:07from the Los Angeles City attorney in
106. 4:09just a few minutes actually uh so we'll
107. 4:11we'll get a little more insight into how
108. 4:13they work together and why it it took
109. 4:16from 2013 to today to to proceed as far
110. 4:20as we have I believe he's fairly
111. 4:22complimentary by the way of the working
112. 4:24relationship that he had with the OCC
113. 4:27and the and the cfpb
114. 4:29but again the question really is why did
115. 4:31it take as long as it did the the
116. 4:34question is why did it
117. 4:36happen why did this fraud happened I
118. 4:38mean that's that's where the focus
119. 4:40should be on Wells Fargo and what they
120. 4:42did to their customers instead of
121. 4:45turning this around and saying you know
122. 4:47well why did the cops take so long to to
123. 4:49get these people hey CNBC fans thanks
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