On September 20, 2016, Wells Fargo CEO and Chairman John Stumpf, US Comptroller of the Currency Thomas J. Curry and CFPB Director Richard Cordray each testified before the US Senate Banking Committee in a hearing entitled "An Examination of Wells Fargo's Unauthorized Accounts and the Regulatory Response." In his testimony, Comptroller Curry stated that he had directed the US Office of the Comptroller of the Currency examiners to review the sales practices of all large and mid-size banks supervised by the OCC in order to "assess the sufficiency of controls with respect to sales practices." In addition, Comptroller Curry noted that the discoveries at Wells Fargo "demonstrate the importance of aligning incentives with appropriate behavior, which highlights the need to finalize the interagency incentive compensation rule sooner rather than later."
Additionally, during the hearing Senators questioned Mr. Stumpf on issues of executive accountability, compensation clawbacks, the validity of "cross-selling" products and business lines and bank regulator accountability. Mr. Stumpf also provided testimony before the US House of Representatives Financial Services Committee on Thursday, September 29, 2016.
More information regarding the hearing is available at: http://www.banking.senate.gov/public/index.cfm/2016/9/an-examination-of-wells-fargo-s-unauthorized-accounts-and-the-regulatory-response.
The full text of Comptroller Curry's oral statement is available at: https://occ.gov/news-issuances/speeches/2016/pub-speech-2016-115.pdf.
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