Rhode Island General Treasurer Seth Magaziner today will meet with Timothy J. Sloan, CEO of Wells Fargo to demand answers following revelations that thousands of Wells Fargo employees illegally opened accounts for bank customers without their permission, charging additional fees to customers and generating performance incentives for employees and managers.
"There continue to be unanswered questions about how long this fraud was perpetrated on unsuspecting customers, what systems and controls were in place, and how long it took management identify and begin to correct these problems," said Treasurer Magaziner. "As shareholders, and customers, we need to have confidence that the Bank- from the CEO down -is committed to ethical business practices."
Treasurer Magaziner is among a group of shareholders who have filed a proposal with Wells Fargo seeking details on the root causes of the fraudulent activity and steps the bank has taken to improve risk management and control processes. Today's meeting -which was organized by The Sisters of St. Francis of Philadelphia and members of the Interfaith Center on Corporate Responsibility- was called to discuss the proposal and will include a number of top executives from Wells Fargo.
In September 2016, Wells Fargo paid a $185 million settlement to the Consumer Financial Protection Bureau. This is only the latest in a series of penalties for charges of long-term widespread fraud, ethical lapses and discrimination within the company.
Treasurer Magaziner believes releasing the requested information is in the company's best interest and adoption of this proposal will lead to stronger investment performance for Rhode Island pension system and all Wells Fargo shareholders.
###
Contact: Evan England, Director of Communications - Office of the General Treasurer (401) 439-2199 (mobile) evan.england@treasury.ri.gov