WASHINGTON–John Stumpf, the chairman and CEO of Wells Fargo, is expected to be given a grilling today when he testifies before a Senate Banking Committee hearing about the bank’s creation of more than one-million fraudulent accounts.
During NAFCU’s Congressional Caucus yesterday, NAFCU CEO Dan Berger said he is among those also expecting some fireworks at the hearing.
The House Financial Services Committee is also launching an investigation into the scandal and is planning to hold a hearing on the matter.
As CUToday.info has reported, Wells Fargo said it has fired 5,300 employees in relation to the scam. It also agreed to pay $185 million in fines and refund $5 million to customers. But the bank’s problems may just be beginning. As CUToday.info reported, the Department of Justice has opened an investigation and has issued subpoenas to the bank.
Also This Week In Washington:
Also this week in Washington, the Federal Open Market Committee will hold a two-day monetary policy setting meeting Tuesday and Wednesday, after which the committee will announce whether the Fed will raise interest rates for the first time since December.
NAFCU Chief Economist and Director of Research Curt Long anticipates the committee will wait until December for another interest rate hike, but he has said it will be “a close call.”
NAFCU Monday attended a meeting of the White House Commission on Enhancing National Cybersecurity, and plans to also attend a Defense Department financial readiness roundtable on Wednesday and a Small Business Administration roundtable on payday lending Thursday.
NAFCU and CUNA staff will also follow a hearing scheduled Thursday by the House Energy and Commerce Subcommittee on Communications and Technology on modernizing the Telephone Consumer Protection Act (TCPA).
CUNA Chief Advocacy Officer Ryan Donovan said the hearing is the first step toward modernizing the TCPA.
“We hope the act can be modernized to make sure financial institutions can interact with and communicate with their members and customers, particularly in an era in which they are being encouraged to do so by folks like CFPB Director Richard Cordray and other regulators,” said Donovan, noting how much communication methods have changed since the act was first instated. “We will be closely following this hearing and will likely submit a statement for the record.”
NAFCU last week raised concerns about how the TCPA would impede credit unions’ ability to communicate with their members.
The House Financial Services Committee will also be briefed on the Financial Stability Oversight Council’s annual report during a hearing Thursday.