What to Expect When Wells Fargo (WFC) CEO Stumpf Returns to Capitol Hill - TheStreet

NEW YORK (TheStreet) -- Wells Fargo (WFC) - Get Report CEO John Stumpf will testify before the House Financial Services Committee about the bank's aggressive sales practices on Thursday, which led to some of the bank's employees allegedly opening millions of fake accounts for customers. 

Stumpf was grilled by the Senate Committee on Banking, Housing, and Urban Affairs last week, most notably by Senator Elizabeth Warren (Mass-D), who is working to crack down on big banks.

CNBC's Wilfred Frost was able to get a copy of Stumpf's prepared remarks for tomorrow's hearing from sources. 

Based on these notes, the CEO will first apologize for the illegal practices and reiterate that he plans to work through the issue at Wells Fargo, rather than step down, Frost said on Wednesday afternoon's "Halftime Report."

Stumpf will also give more details about the specific dates when certain things related to the scandal were discovered and what specific actions were taken to deal with those issues, Frost said. 

Finally, Stumpf will again emphasize that Wells Fargo did not instruct employees to engage in opening fraudulent accounts to boost numbers.

Stumpf's performance at last week's hearing was "widely criticized," particularly for not having enough details about specific dates for when things were discovered, noted Frost. Stumpf will apparently address those complaints tomorrow.

The two major issues that will probably pop up tomorrow will be about whether there will be callbacks of pay or not, and about whether employees committed the illegal actions by their own freewill or because they were forced to do so, Frost said. 

Stumpf has agreed to give up $41 million in relation to the scandal, but many say this was long overdue. 

"This is a necessary, but not sufficient condition for his survival," one analyst told Frost.

Earlier today, Federal Reserve Chair Janet Yellen testified before the House Financial Services Committee and said the Fed was taking a closer look at the big banks after the Wells Fargo scandal.

Shares of Wells Fargo were higher in late-afternoon trading on Wednesday. 

(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of Cramer's holdings with a free trial.)

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 team rates Wells Fargo 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 the team covers.

You can view the full analysis from the report here: WFC

Image placeholder title

WFC

data by

YCharts