Elizabeth Warren: DOJ, SEC should investigate ex-Wells Fargo chief Tim Sloan
The 2020 Democratic presidential candidate said the authorities should look into what role he played, if any, in “scams” connected to the banking giant. Her comments came immediately after Sloan announced he would step down Thursday after 31 years with the institution. He was replaced on an interim basis by Wells Fargo general counsel C. Allen Parker.
“About damn time,” Warren tweeted. “Tim Sloan should have been fired a long time ago.
“He enabled Wells Fargo’s massive fake accounts scam, got rich off it, then helped cover it up. Now — let’s make sure all the people hurt by Wells Fargo’s scams get the relief they’re owed.”
Sloan became CEO and president in 2017 after John Stumpf resigned amid a scandal involving bank associates opening accounts without customers’ knowledge to fill quotas. Employees created thousands of phony accounts and manipulated some real accounts to boost sales figures and earn bonuses. The bank responded by firing more than 5,000 workers and pledged to end sales goals.
Federal lawmakers questioned Sloan in late 2017 about the scandal, and another in which the bank charged customers for unnecessary auto insurance.
Thursday, Warren suggested Sloan was forced out of the company.
“Getting fired shouldn’t be the end of the story for Tim Sloan. He shouldn’t get a golden parachute [severance],” she wrote. “He should be investigated by the SEC and the DOJ for his role in all the Wells Fargo scams. And if he’s guilty of any crimes, he should be put in jail like anyone else.”
Warren has long been viewed a customer advocate and corporate watchdog. This month, she presented a plan to break up big tech companies like Amazon, Google and Facebook, arguing they have become too powerful and stifle competition.