Wells Fargo CEO John Stumpf: We Didn't Get On This Fast Enough | CNBC — Transcript

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1. 0:00Your testimony also does not address
2. 0:03when the violations were brought to the
3. 0:05attention of senior management.
4. 0:08Specifically, when did you find out that
5. 0:11thousands of your employees were opening
6. 0:13unauthorized accounts or fraudulent
7. 0:15accounts? Yes. Uh did did it take that
8. 0:18long? Yeah. When did you find out? Thank
9. 0:21you again, Senator. The business uh has
10. 0:26their own audit and investigations and
11. 0:30sales practices, ethicacy and so forth
12. 0:32contained within the regional bank or
13. 0:35the the retail bank after they had been
14. 0:38working on this issue for a couple of
15. 0:41years. And again, this was way too many
16. 0:44people, but it was 1% of our our people.
17. 0:48there's at any one time 100,000 team
18. 0:51members in our banks and and after we
19. 0:56notice after the business uh was dealing
20. 0:58with this for a couple years it was then
21. 1:01brought to the holding company and
22. 1:03corporate assets corporate audit
23. 1:06corporate compliance the so-called
24. 1:08second line of defense got very active
25. 1:11and that's when I became much more aware
26. 1:13of the issue does it bother you as a CEO
27. 1:16of such a
28. 1:18large bank that uh systemic fraud was
29. 1:22not brought to your attention sooner by
30. 1:24your employees.
31. 1:26I if I could turn the clock back and
32. 1:29I've thought about this a thousand
33. 1:31times. Of course I wish I would have
34. 1:33done we all wish we would have done
35. 1:35something more earlier. We didn't get on
36. 1:38this fast enough. Again, recognizing
37. 1:42that this was, you know, the vast
38. 1:45majority of people were doing the right
39. 1:46thing. When, let's go back to the
40. 1:49question a minute ago. I don't believe
41. 1:50you answered it
42. 1:52specifically. When did the senior
43. 1:55management, you and others you you deem
44. 1:58senior management learn about this
45. 2:00fraud? You know, I can speak for myself
46. 2:02and I know that other corporate
47. 2:06executives at the at the corporate area
48. 2:10outside of the business. Uh uh I can
49. 2:13speak to myself and I believe others. It
50. 2:15was
51. 2:162013. Before that, it was being dealt
52. 2:20with with with the audit and compliance
53. 2:23within the business unit.
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