NEW YORK (TheStreet) -- Wells Fargo (WFC) - Get Report CEO John Stumpf is currently testifying before the House Financial Services Committee on Thursday about the phony accounts scandal that has been plaguing the banking giant.
The hearing was broadcast live on BloombergTV.
It was recently disclosed that Wells Fargo employees had been fraudulently opening accounts in customers' names without their knowledge since 2011, in order to meet aggressive sales goals.
The bank must pay a fine of $185 million as a result. Congress is working to determine how much the bank's executives knew about the practice and how they responded to it, as well as whom to hold responsible.
Congresswoman Nydia Velazquez (D-NY) had several questions for Stumpf, first she wanted to know how many of the 5,300 Wells Fargo employees that were fired over the scandal lost their jobs for failing to meet sales quotas.
"Of the 5,300, which is about 1,000 people per year out of our team...all of those people through our investigation were terminated because of their unethical behaviors. We found them, we decided that we can't have them here, they are not consistent with our culture and our ethics," Stumpf responded.
Velazquez then asked Stumpf if, outside of the 5,300 employees terminated over that period, any employees were let go for not meeting sales goals.
"My understanding is that people should not be fired, terminated for missing sales goal," he said. "I'm not saying it didn't happen."
Velazquez fired back asking the CEO how anyone could trust that was the case and he responded that the company is conducting a review to find out if anyone was fired for that reason.
If the company's review were to determine people were fired for not meeting a sales quota, Velazquez questioned if Wells Fargo would rehire those individuals.
"First of all, we don't have sales quotas," the CEO responded. "We have goals and there's other goals that our people also have as part of their performance management. We're reviewing that and we're going to try to make it right for every team member."
Shares of Wells Fargo were down on earlyThursday afternoon.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate WELLS FARGO & CO as a Buy with a ratings score of B. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: WFC