Treasurer Magaziner Meets with Wells Fargo CEO, Pushes for Accountability on Widespread Consumer Fraud

PROVIDENCE, RI – 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.