Wells Fargo Chair, Director Step Down Ahead of House Testimony This Week

Wells Fargo Chairwoman Betsy Duke and Director James Quigley stepped down from the board. They will testify at a hearing of the House Financial Services Committee regarding the bank.
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Wells Fargo  (WFC) - Get Report Chairwoman Betsy Duke and Director James Quigley stepped down on Sunday, ahead of a congressional hearing this week to probe the bank’s scandals over the past few years.

Duke was elected to her position in January 2018 after serving as vice chair from October 2016. Charles Noski will now serve as chairman, nine months after he joined the board.

The House Financial Services Committee last week issued a report accusing Wells Fargo of failing to comply with regulatory orders. 

The report described Wells Fargo as “a reckless megabank with an ineffective board and management that has exhibited an egregious pattern of consumer abuses. Wells Fargo has clearly demonstrated an unwillingness and inability to stop harming its customers.”

Wells Fargo in February agreed to pay $3 billion to settle a Justice Department and Secrutities and Exchange Commission investigation into the bank’s sales practices. 

A report said that internal documents showed that the bank was focused more on profits and doing what it needed to do to get off probation “than on fixing the bank’s longstanding compliance management weaknesses.”

The report accused former CEO Tim Sloan of giving “inaccurate and misleading testimony to Congress” when he testified last year.

Duke and Quigley said in a statement, “Since we were made aware of the egregious harms suffered by Wells Fargo’s customers, we were and remain fiercely determined to do right by them and to strengthen the bank’s culture and controls. We have made these our top priorities.”

The House Committee has hearings scheduled for Tuesday and Wednesday. 

Wells Fargo shares dropped more than 10% premarket Monday.