The chairman of the gentleman from mr. From texas is recognized. Thank you madam chair. Madam chair, as a practitioner, i once represented a rips recipient of welfare who is charged with a crime, because she made more money at a job and receiveds some benefits from the federal government. She had to be prosecuted. A crowned with allege. If this bank works much smaller, had maybe ten employees who were engaging in this type of activity, opening an opening up false accounts, fraudulent accounts, creating fraudulent credit cards. Someone would be prosecuted. If small banks would have had prosecution take place within the rank of the person within the bank. Evidence shows that small banks have had persons prosecuted. But wells fargo created 1. 5 million fraudulent accounts. Wells fargo had over 500,000 credit cards created fraudulently. Is it the case that if you become so big, and you create such a grand steam, that you are beyond the law of the law to apply to wells fargo just does it apply to that welfare recipients. Just as it would apply to any small bank in this country. Wells fargo cannot be too big to prosecute. It cannot be too big to jail. Wells fargo has to be held accountable. We cannot allow 17 billion 296,835,949 dollars in penalty to become simply the cost of doing business, while these criminal activities were taking place, you are making billions. You sat on the board, and you knew what was happening, and this morning you as much as a knowledge, when the chairwoman asked about the chaos. Did anybody ever think or say somebody should go to jail somebody has to be prosecuted this is a crime . 1. 5 million accounts. It is unbelievable. It is unimaginable. Yet no one has been prosecuted. Maybe i am mistaken. If someone wells fargo had been prosecuted for these grievances would you kindly extend your hand to their to review. Let the record reflect that no hand has been extended into the air. I shall have a cool photograph of this in my office. And when have people asked me about this picture, and it will show you, it will show you with no hands raised and i will explain this to people. You cannot escape the long arm of the law. It applies to all of. If you believe that this pork it have done more to bring to justice those who perpetrated the criminal activity, raise your hand please. Let the record reflect that the fort numbers have concluded that no one that the board could not have done more because no hand was raised. I shall have a photograph of this in my office along with other photographs that ive collected from persons who have been in similar situations. We are now at a point in our history where we have to rethink the wells fargo paradigm. I concur with those who are saying we have to rethink whether or not wells fargo is not only to pick to fail, but we corrected that. But also too big to exist. Maybe you are too big to manage. Maybe the solution is going to have to be something that emanates here, because you are not being prosecuted. At some point the arm of the law has to reach wells fargo. I yield back my time. The gentleman from texas is recognized for five minutes. Thank you madam chairman and both for coming here today. Yesterday we heard from the new ceo at welshs who said wells fargo has a lot to do for these scandals to go unnoticed the previous ceo seemed to expand businesses to fix underlying problems that cost customers to be harm in the first place. As Board Members, i am disappointed that you are not more active in your positions to get wells fargo back to the strong presence that they had historically been in this country. Reports uncovered that the border is well aware of the regulators concern over sloan sport performance. Yet he was still able to keep his position a ceo. As a small im a car dealer in texas, i know how important we have attitude at the top levels of leadership are to my employees. The ceo sets the tone. If they are not taking the pass seriously it is hard to get other employees to change their behavior as well. Quickly, why did you stick with temps long for so long . If i could just respond. No maam i have not get time answer my question. Tims long, we made him the ceo when we replaced john immediatelys got the sales practices and center replace most of the management in the community he took action quickly. He had problems that needed to be addressed immediately but the time it takes to find someone, and has a number of you know the question of whether or not anyone with the ability to do this role would be willing to come into this role is a question of inaudible i understand. Its the scandal broke it made sense to bring outside experts to make the necessary shortterm adjustments to protect consumers. However, it also doesnt seem like there was a large with to mr. Quickly, did you have any concerns that wells fargo cannot do this work internally . Why was it not a priority even after the regulators voiced there concern . I definitely had concerns and was unhappy with what was occurring with respect to the use of third parties as the former ceo of a large professional services firm, i know that sometimes when you want to accelerate progress he will look to a third party to try to accelerate the activity that needs to be taken. But we need to build capability. We need to accrue capability. We need to build capacity into that independent Risk Management group. One thing that i know is true, to find the most able resource takes much more time, than finding the most available resource. Im not happy with the time that its been required, but i am pleased with progress is being made, and i agree with the points that mr. Sharp made yesterday with respect to the points that the real ancient nature and the action needs to be taken, and his absolute focus and regulatory are good. As we mentioned it a highly unusual steps to make the Public Statement thats temps alone was being overly optimistic about his progress with wells fargo. Mr. Quickly in your testimony you state that once the board was made aware, they were not receiving quality information decisive actions were taken to fix the issue. My question is what structural changes that were made internally to ensure that the board with sikh accurate and information moving forward . We have a very active communication between community chairs and their Liaison Officer who is bringing a information. The quality of the data that is coming in our direction. I was pleased with the elimination of the federated model. I was pleased with the need to strengthen the independent Risk Management group. With that came Higher Quality information to the board to enable stronger and more effective oversight. In closing, let me just say this. I hope this institution eliminates the, i dont know attitude, so many people have said, i dont know. I have 200 employees and i think i know, that the i dont know attitude has really run rampant, and i hope that your leadership level will stop that and i cant believe how much they pay you boards of directors. Gentlemen mr. Cleaver also the chair for the subcommittee on National Security and managing policy is recognized for five minutes. Thank you madam chair. Let me first of all expressed some appreciation and some surprise. You are not subpoena of your own volition thank you for coming. I appreciate you coming. Let me try to get some information from. I am gravely concerned about the report we received. Are either of you aware of an informal official secret that channel to the cfpb. Three regulators at cfpb . I am not aware of that, and you do not believe that it occurred. I did read the committee report. I was the one who had quarterly meetings with mr. Barr can steam and when i met with him there were always members of the cfpb that are with him and i was always accompanied by people from wells fargo. Thank you. So you are saying that people got something wrong or made it up islanders. I understood your question was that channels of communication with cfpb and im saying no so according to the report of somebody did something incorrectly, or falsely, maybe even with intentionality, when you said youve met with mr. Lincolns team, do you detect any and account Racial Attitudes when he met with him . I did not. He came to our board of directors and spoke on behalf of cfpb and following his report to the board, biden reached out to try to meet with him if he had time when i was in washington. Again, in those meetings i was always accompanied by someone from wells fargo, and he was accompanied by other seema cfpb. We never had a oneonone. Im interested in that because of the fact that we know i was his text message. It was his email. You are not aware of that . I read what was in the report but i had never seen it before. I was sent to me just summarizing the discussion that he had had with mr. Burlington steam, and at the time that he was departing. I did not follow up. I never had further communication with him. But when you were you alarmed when you saw that . Well if you have to think about it you are not. So theres an allegation about that channel which was not there. Ill change. Its offensive to me as a human being to be ripped first to somebody who would call me by my color. Points the Compensation Committee . Im trying to find out get information who appoints . All the committees are appointed by the nominating committee. Is that the desirable committee on the blackboard . I dont think its the necessarily the desirable committee. Committees of had responsibility in their careers for Human Resources, we also need to make sure that committees diverse. Because they do with so many issues related to our management and employees. A lot of people on appropriations committee, mr. Quickly. Do you im sorry did not understand the question. The compass compensation boy, people pushing and shoving. . There was a time, im a little sensitive to this, but there was a time when everyone wanted to avoid the Audit Committee because it was a place not to be, but i believe the aggressive approach. Finish your statement. With respect to the Human Resources committee that has become a difficult seat on any board and i dont see people elbowing and trying to have that privilege that is a very heavy lift. Thank you very much. Thank you davidson from ohio is recognized for five minutes. Thank you chairwoman. Mr. Quickly mister do miscue now they are no longer with the board, do you believe that some of the criminal actions taken by employees that wells pharco should be prosecuted by federal officials . Or do you believe that the fines have already been implemented is enough . I appreciate i wanted to answer to that before. When we didnt investigation of what happened and sales practices we delivered all the evidence we found to the sec the dhs and civil and criminal youre highlighted you paid fines and settlements to the corporations. Do you acknowledge that crimes were committed . That is correct. We dont have the ability to prosecute that we what we did do with the individuals that we found to be comparable, was to forfeit not pay compensation to, terminate for cars and we find individuals through those mechanisms 180 Million Dollars or so and in particular cases with significant amounts of money shouldnt the federal government prosecute them for committing federal crimes . That is a decision for the prosecutors, but we are having no way he impeded the ability to do. So quickly . We provided all the information that we learned through the investigation. Should they be prosecuted . They committed crimes. Im not in a position youre not in a position . I would say yes. So you guys say present . On an essay yes no should they be prosecuted . Was not the atms it wasnt the conference rooms. So many were 12 for wells fargo committed crimes . Should they be prosecuted . Pathetic pathetic. Im glad youre not on the board frankly,. Presumably, by getting higher for such a fort you had an exceptional amount of experience. You are well qualified. Consider so by someone who offered you to position and generous compensation package for being Board Members. How is the culture at wells fargo different than the presumably positive cultures that you are part of the four . Or is this just endemic of all the places. Should we look at all the industries that the world is looking at for wells fargo . In we have stated clearly that culture changes needed. Im pleased with the progress that is being made. These are early days for charlie, but his commitment to state to change cultures it open in my Opening Statement that is his top priority. Better late than never. I think he has a lot of potential. I like his background. It is not my job to hire Board Members or ceos of any corporations or but i do know the culture matters. Unless he is empowered the change of the ship of 270,000 employees, that culture will not change overnight. A seat of government having seen very little action by the executive branch with a duty to take action where federal crimes were committed, i think it is right that the legislative branch call attention to. That not just with the failures, but with this particular bank but with the failures of the department of justice to prosecute people. The idea that every day americans feel like there is one standard for them in a different standard for the well connected, well to do people that operate Companies Like wells fargo or frankly work at the fbi, national intelligence, cia, or any other part of the executive branch. We cannot have people going around locker, up lock him in, because the department of justice continually fails to a play one standard of law, and have a lady justices blindfold. There has to be accountability. When crimes are committed particularly in cases like this, six plus billion dollars in fines, and an acknowledgment that the crimes were committed, someone should go to jail. We need our department of justice to provide that accountability and winning Board Members that are going to do their duty. I look forward to the progress made under new ceo, and i hope we never need to see wells fargo here again except to commend am for the positive change and culture that has been accomplished. I yield. Gentleman from colorado is recognized for five minutes. Im i may sound like a board apologize compared to everyone else here because i look at law and little differently from the. Others i am a customer of the bank and have been a customer for 40 years. I am a customer that went from two to eight accounts and the lines of credit that i had when i just got out of law school got cut in half, but given a credit card for twice that amount with a big line of credit attached. Things i never asked for just appeared. I know the abuses that occurred. I like my problem here, is there have been a lot of time that is past obviously. The court details, all of that. The board and some instances have taken some serious action with mr. Stump with mr. Sloan trying to deal with the consent, agreements betimes is kept passing. My questions to two, and you can answer them as you choose. I think there are three choices for me sitting up here. Either your derelict in your duties and did not address these Consent Orders, or the culture of the bank needs to be changed pretty traumatically in terms of its personnel and operations, or the thing is just too big for any board, any manager to get their arms around it. It cannot be done. So if you could respond to my concerns. What we have found is that some of the issues directly attributable to when the. Some issues are attributable to the structure of the way the companies managed. The decentralized structure, and that is required to recentralize and also standardized and simplified the way all of our employees do their work. We need to be much clearer about that what that looks like is for example, if you take 83 different Human Resource department and put them together, you dont get one fully run functioning Human Resources department. It takes one of quite a bit of time to get a stop central to work with 165,000 employees. That leads me to other questions. Free mr. Quickly. I could just comment on the multiple choice you offered. I would choose culture change, and that is what you heard from our ceo yesterday. He is struggling to build a culture of Operational Excellence and integrity as a number one priority. I am pleased that that is what he said to the entire team on day one. He has not veered from that message. He continues with execution execution. Let me challenge you both on that, then. I dont know how many customers 70 million customers . 275,000 employees, 83 personnel departments . At least five years from the first Consent Order to try to remodel or revamp a culture, and yet that has not taken place. Still ongoing, and with a lot of things unanswered. It is getting to me, that this thing its just too vague, and that is not the answer i was thinking i would get to, but that is where its going. I i do not think the problems are function of size, i think theyre a function of the way the companies organized and the way they have been an organized historically. But now weve gone five years. How long is it going to take to restructure or reorganize . That was i was a bankruptcy lawyer for a long time that a lot of real organizations. How long do you think this is going to take to reorganize this company. You can look in the rearview mirror. Weve got a new ceo that you heard from yesterday, and you saw that he is moving with a sense of urgency. He has a new operating committee, he is building the culture, and this is his number one priority and he filled the seat of chief operating officer who has made regulatory progress. That individual so the last two ceos were capable of doing that . Youre saying this is different . I believe having a ceo from the outside is absolutely different. There was a question earlier about what other differences between mr. Sloan and mr. Sharp and there is no question, this is different under charlie. Ive been on the board for six years and i am now working with my fourth ceo. For the board was not derelict and its duties but very much actively at the table and trying to drive change in a way that could be sustainable, and to make sure that customer harm never occurs. It is absolutely what i wanted and with the ambition. Was thank you i yield back. Madam chair the consent request. Without objection. Bankers were sent to business sent to prison prison. Over fake accounts scandals jobs article that tracks the amount of penalties that wells fargo has paid since 2