Congress Poking Holes in Wells Fargo Claims About Not Violating Securities Law
Members of the House Financial Services Committee cast doubt on Wells Fargo’s claims that it didn’t publicly disclose account falsifications in Securities and Exchange Commission filings because the information was “not material.” Rep. Carolyn Maloney (D-N.Y.) asked CEO John Stumpf at a hearing on Thursday why he personally sold $13 million worth of stock in late 2013–around the same time that he heard of accounts being systemically opened without consumer authorization. Rep. Brad Sherman (D-Calif.), meanwhile, said that the bank’s stock price would have plummeted,…