Europe, germans biggest brought to to mes by american authorities either way we will be affected, welcome to the world of Systemic Risk its back. Opec a deal to get oil prices up will they stick to it jury out oil prize down a faction today. And, of course, Varney Company is all over the election the story this morning number one, media, more apoplectic attacks on donald trump number two, liberate barrierian gary johnson another aleppo moment, three trump goes into attack mode follow hillarys money that crooked woman he says. Just wait till you see what amazon is doing you are watching it now, i have been around a long time, you dont every see anything like that Varney Company is about to begin. Stuart get out of the way from getgo slightly other opening for stocks today, Economic Growth is still well below 2 , that was news this morning, oil consider this please. The saudis opec agreed to production cut, just as 9 11 victims get right to sue saudis a coincidence . We are on it oil down 7 cents, now the astonishing amazon, set to open pretty close to another record high. Ashley here we talk about it every day, and we do what is driving the latest amazon rally. Constant growth and expansion, looking for new ways to generate revenue, and it does, and this is a stock up 267 in the past five years. Taking huge chunks, and continues to innovate, this is a stock that no stopping the company, for the longest time catalyzed for spending way too much money not generating revenue, now it is doing that, but also spreading into all sorts of areas we talk about it daily, and by all accounts most analysts say this stock could very well hit 1,000 dollars we will see doubled in the last 16 months, what else you got to add. 400 billion dollars market cap about fifth largest in the world it is a crashing into all sorts of areas, now possibly auto markets Beauty Products digital photo printing astonishing, a bookseller two years ago. A bookseller that is what it did look at it now lets go, donald trump, right after the debate he goes right on to attack, three speeches yesterday, there will be two more today, his advisories are telling him hey look you got to practice more, for the next debate. Will he lessen. A ceo advisor to the Trump Campaign you are telling him i presume, hey you lost the first debate. No. Stuart b, you got to practice for the second one. No, not telling himmet of those things. Stuart why not. He is the first debate American People saw scripted candidate tried to lie her way out about tpp. Stuart countless opportunities, and you know it. Look at polling this will fit right into the trajectory of this race donald trump winning, ohio,pennsylvania, florida, we are going up and up and up all those states this will fit into that trajectory, and be able to continue it i am very confident into town hall. Of course, you are campaign team. I am really worried about it watch out. I have been on this program you said your brave you said you are overlypositive look where i am now he is our nominee to victory positivity. I think you got work to do work to do that in a second debate a different format like a town hall questions from audience i think in prime, because he relates very well to audience that is what he is going to have to do. She does it she had scripted little joke like a robot out there. Turning to it other side. We are he will do great in town hall in last debate about 3 innings in two innings in out of nine, baseball, and you are going to talk about this, follow the money, look at Hillary Clinton look at 1 hundred Million Dollars received from wall street in this cycle alone 22 million stuart he has said really nasty things, about women, called them very nasty names, being about labeled sexist how does he come back from that. Strategy. Look at his Campaign Manager Kellyanne Conway wonderful so impressive, look at his family, she is promoted through the his career some woman wander positive smear him look what he has done throughout career actions speak loudly. Stuart i think you have to come out of the box real strong is he racist no, he is not, sexist no, he is not. Again, his actions trajectory his business, relationships business experience show that you know what else american women dont care about a beauty panelent from 1990s they care about National Security having food on the table they care about jobs, that is what they care about. That is what we want to be talking not distractions clinton is trying to push out there. Sunday october st. Louis you going bab there. Yep. You are under arch everything. Okay. We will see the you before then, thank you appreciate it. Stuart Bernie Sanders, yesterday, joined Hillary Rodham clinton on the campaign trail, she joined him im not sure which way in vermont a major problem courting young people their solution is well watch for yourself he they double down on free college watch this. Now, some people will say our critics will say well you know good idea making public Colleges Universities tuition free but it is expensive, cost a lot of money the truth is it is an expensive proposal. But i will tell you what is even more expensive and that is doing nothing. We must invest in our young people, and the future of this country. Stuart i do apologize not vermont very close it was New Hampshire colin hill with us a former bernie supporter, i am going to say that was pure buying of young peoples votes are you going to contradict me. Yes, they attempted to not going to work look when we supported Bernie Sanders the first go around, it wasnt to support a good that is not what we wanted to elect that is exactly what he is being he is cau towing to Hillary Clinton the democratic establishment do whatever it takes to vans his own career apparently i am wondering at this point what did she promise him, to get him on the same stage. Guess what do you think. On in. Stuart you guess. I am not going to speculate something there is. Stay out of this this is by now. Look donald trump spoke about bernie during the rally of his own this is in iowa listen to this. Bernie sanders could have gone down in record books as being a great, great man. But when he made that deal it was over. Now he goes and he has crowds 100 people. Nobody wants to watch him nobody wants to listen not that they dislike him, but he doesnt draw anybody he doesnt draw anybody. And it is a whole different things, had he not made that deal he would he have been legendary. What do you see us do people selloff Bernie Sanders feel betrayed by him i saw it in philadelphia Dnc Convention i saw people crying, because this is this is an emotional thing for them they believed that he was their last best hope and here he is, capitulate to go most entitled corrupt destructive candidate for the president United States ever. Stuart are you saying all those tens of thousands if not marine layers of young people who flocked to Bernie Sanders vigorously supported him you are saying most will not flock to Hillary Clinton and support her is that what you are saying. There is no question, not just millennial voters are not going to supporter Hillary Clinton it is entire Obama Coalition they are going to stay home if they do, there is no way she can win in november. Are you are you for trump or just i really antihillary. No, i am for trump. Positively. Absolutely i came of age during obamanomics we remember good times, the stagnant growth, you know median house thold income flatter down depending how ask 1 first half of this year, i mean we need to grow our way out of this offering free stuff isnt going to fix the economy long term. You learned a lot on Varney Company you really do i am proud of you i really am harlan hill everyone thank you, sir. . I know, great. Could be grandson. No, no. Check this one out congressman Sheila Jacksonlee Democratic Texas wore Hillary Clinton pin during house judiciary hearing featuring fbi director comey during hearing accused republicans for slilg for trump what do we say so that. This is the judiciary. [laughter] company. This is oversight this is Judiciary Academy oversight fbi Law Enforcement the courts to be wearing this i know rules say dont really cover pins but she is asking questions, about Hillary Clintons private email scandfitch bi how they hammed it tough house trying to move to holding in contempt Brian Pagliano that vote in a couple days. Interesting see what he does all kinds of stuff for you on the Program Including this. Tim tebow former nfl quarterback now on the Minor League Team first pro baseball game of his career steps to the plate, look at that hits a home run, on the first pitch thrown, way to go tim tebow not bad way to start would i say more fallout from wells fargo phony account scandal california banning them from handling transactions for the state john stumpfing riegz right now hearing begins 50 minutes time california ban on doing business with wells fargo will last for at least 12 months. The banks chief john stumpf you see him there arriving for his grilling, part two you are going to see it going to be atri outrage from all sides one congressman asking questions today will be with us next. As a combination of see products. And customers. Every ontime arrival is backed by thousands of od employees,. Who make sure the millions of products we ship arrive without damages. Because od employees treat customer service. Like our most important delivery. Od. Helping the world keep promises. You didnt tell customers you were sorry . That have right to be intellectualitied. Have you returned one nickel of millions of dollars that you were paid while this scam was going on. 1 of a big part of your business is over fraud but that doesnt rise to your level. Have you resigned as ceo or chairman of wells fargo. Do you promise to pay back every single extra dollar these people are going to incur next 0 years. I have been on this committee nearly 10 years now, you have done something that is never happened in the last 10 years, in united the committee on major topic not in a good way. Those were some fireworks at wells fargo hearing last week, we are going to expect more same 45 minutes from now, congressman republican will be in that room, and will be asking questions. Congressman, now john stumpf already lost the 41 millions taken off it there are umpteen lawsuits, going after wells fargo. And wells fargo has lost the the business of california for at least a year. What more do you want . Well, first of all you are playing clips on senate plan was that a rough hearing, mr. Stumpf did not go great job we want to know what did wells fargo know when did they know it information goes back to 2011, when 1,000 Bank Employees were fired for fraudulently activity, that means the story goes well before 2011 we want to to know how wells fargo has taken care of customers, again, about 22 to 25 dollars per individual per account defraud wasnt huge amount wells fargo stealing money from their employees. We want are you going to call for him to resign. Listen, stuart things happen in business, the question becomes, what does the Leadership Team do to change the culture in the business, to make sure you turn this corner, and are now a good Corporate Citizen and good to your customers. Would you but wait a second would you consider putting some regulators on stand where were they dont we have onerous regulation of banks bankers looking over shoulders a regulator looking at what they are doing when were they. Next part of it what were regulators doing starting with l. A. Times no regulator with l. A. City attorney Prosecutors Office where was it is cfp. D. , opc are in to be found o when they tarted to investigate with wells fargo, after that, then wells fargo selfreported to the cfpb the bureau have come on said we are greatest agency protecting consumers bottom line they came in when this case was over, this was done, at the put a bow on it in a package said were great fined him for the purpose millions the regulators absent through process. Congressman we got to go breaking news but we will see the you the top of the hour, you are on that committee we will be watching thanks very much that breaking news, we have a commuter train crash in new jersey. Ashley i think it was in hoboken. Ashley yeah train strayings new Jersey Transit train crashing into terminal with force at least one train some pictures one car on train is actually sitting on the platform suggests it came in very fast rate of notches they say reports injuries possibly mass casualties from somon scene, obviously, about rail service in and out of station has been suspended for now, but Emergency Services getting in there trying to aassess the damage get those injured people who were on the train tweeting out i feel lucky to be alive no idea on extent of injuri injuries. Stuart i dont know whether i should say this or not my daughter takes train into hoboken every morning, a little earlier than this, but forgive me take a break during commercial find out what is going on. Understandable rush hour. We will show pictures when ready for air to markets price of oil this morning i believe down a couple cents may be up a couple cents there you go, 47 bucks a barrel as of now mcdonalds raising the dividend not much 6 raise stock will be dead flat. How about this one samsung, first it was exploding smartphones okay . Now they are problems with replacement phones, and got another problem too. With washing machines we are on it, attorney general Loretta Lynch now being mentioned as a possible Supreme Court pointe if Hillary Clinton is elected. How about that. We will try to explain. And we tried to show you on this show in new jersey a deer revenge on a driver who clipped it by accident. Car stopped driver opens door deer starts to attack took kick in the chest to get deer out of the whoa. Video. We will be back. A tough. Im jamie foxx for verizon. In the nations largest independent study by rootmetrics, again, verizon is the number one network. Hi, im jamie foxx for sprint. And im jamie foxx for tmobile. both and were just as good. Really . Only verizon was ranked number one nationally in data, reliability, text and call and speed. Yeah. And youre gonna fist pump to that . Get out of my sight. announcer vo unlimited isnt a good deal if its on a cutrate network. Switch now and get our best deal. 20 gigs and four lines for only 160. All on americas best network. Stuart well, how about this, unofficial short list of Hillary Clintons ppick to fill Supreme Court vacancy out name on it you will recognize here it is attorney general Loretta Lynch. Harlan hill still here i want your reaction now. Yeah. You know, it is clear that the clintons are bragging with this they are saying hey look what we got away with. And you know what . They are right bill clinton met with Loretta Lynch on the tarmac clear that they talked about something more than just their grandchildren, because Hillary Clinton was above and beyond the law with this investigation, Loretta Lynch you know i cannot believe she has to denounce this this really damages her long term i think. Lets remember, as you said it was on the tarmac in the phoenix airport, that bill clinton arrived in his jet and held a meeting with Loretta Lynch, Loretta Lynch was that moment investigating or in charge of the investigation of bill clintons wife Hillary Clinton. That is a direct conflict of interest nobody with any experience in law should ever have gone anywhere near that meeting but she did. Absolutely, the appearance of im propriety their bragging saying look at what we got away with we dont care if you know harlan hill fired up fired up, doesnt like Hillary Clinton. Deposit onlied works if fate in theism americans dont have faith clirnz giving American People every reason not to have faith. Good start thank you very much look at samazon was 789 last technique now 829, 830 this time last year, it was four 486 that stock is taken off watch it go, the opening bell, moments from now. Stuart before the opening bell i want to show you this. A commuter train crash in new jersey. These pictures just coming in to us. There are reports of multiple injuries. I do want to take a brief moment to say my daughter is okay. She had arrived at work in the city before this train accident occurred. Well have a lot more on this coming up. Bingo, it is 9 30 eastern time. That opening bell, well it has rung. [opening bell rings] were starting to trade on this thursday morning. Earlier today, latest reading on growth, 4. 1 on annualized basis. We opened down is. Most of the dow 30, most of them in the red. Price of oil, it was up 5 yesterday. Up big time, a little bit higher this morning. Opec agreed to a production cut. Can they actually come through with it. 4on oil. Amazon opens at another high, 832. 834 yesterday. Were on this. A lot more on amazon in a second. Deutsche bank, big story, its happening over there. Theyre in deep trouble. It could affect our money over here. Again a lot more on this company and this banking crisis in europe. Here we go. How about wells fargo . Politicians forcing private enterprise to give you up money. The hearing, the second one, less than 30 minutes away. Wells fargo stock, hardly under pressure, down 12 cents. Another day, another high for amazon, yes. 833 is where it is now. 834 im sorry. It went up a little bit more. Joining us full screen, ashley webster, liz macdonald, john layfield. Dr, amazon, 833 we speak. Too expensive for you . At 833 i always love to buy things on a pullback, stuart. You know that. Stuart where is the pullback . Thats a tough thing for amazon. They have two aces up their sleeve meaning you want this in our portfolio Going Forward. When they tell us finally how many prime members they have. When they finally announce a number to tracking that, the stock will get a huge pop. When they tell us how much clothing they are selling and find out theyre americas number one clothing retailer surpassing macys they will get another pop. Stuart really. More data will be more upside. Stuart john layfield, we cant get enough amazon. Will you buy this at 832. 65 . I will probably regress in is a years. I wait for pullback. I think dr is right. I think it is one of the bests companies on earth. Think it winning one of the most Profitable Companies on earth but i will wait for a pullback before i buy it. Stuart larry levin, you wait things to come down a bit before you buy. Is that your situation, larry. If i can be, i will, stuart, but sometimes you have to buy things on high. Amazon is good example. Dr mentioned another thing, Cloud Storage is huge thing for amazon. Another kind of feather in its cap. Stuart im blown away by amazon. Really am. Straight up. Never seen anything like it. Except for apple a few years ago when it went straight up and doubled in value very quickly. Latest read on Economic Growth. We got it first thing this morning. 1. 4 annualized Economic Growth. Larry levin, what do you say about that . Unfortunately a bad number. It will keep the market going higher, tie the feds hands. Even if they raise in december, they cant keep it going. It will drive the market higher. More of the same. Stuart thats the story. Weak economy. Stocks go up. Is that the story . Bad news is good because of the fed props. That is the whole story. Thats the whole story. Stuart sitting there in sunny bermuda, are you going to tell me that bad news is good news . Are you going to tell me that from the beach . Yeah. We had a hurricane here last weekend. Fortunately it passed. It is sunny right now. The fed right now is looking for something sunny. But theyre not finding it. Im not sure bad news is good. I think not good news is good. This is kind of in the middle. 1. 4 gdp compared to 0 gdp is good. When you have 4. 9 unemployment it is not very good at all. It is just bad enough that fed will keep rates low. Ashley under president obama, since 2009, average growth for the economy is 1. 8 . Thats it. Stuart you did the math. 1. 8 . Ashley charlie brady. Stuart stock is not moving very much this morning wells fargo. 20 minutes time, john stumpf getting grilled on capitol hill. News, the state of the california suspended business dealings with the back for at least 12 months. What is the story . Liz major parts of the business relationship. They will not use them as brokerdealer on Government Bond offerings. Not buy wells fargo own debt security. John chapping, running for governor in 2016, state treasurer, he will push californias big giant pension fund to demand clawbacks from other executives. Stuart jumping on the bandwagon. Dont blame the guy. Liz connecticut might be going down the road too. Stuart would you buy wells fargo at 45 . Were seeing muted response, stuart, last year 2015 they only did 4 million of revenue out of 90 billion in california municipal bonds. This is the first shot across the bow. Who will follow suit . Stuart got it. There is really a banking crisis in europe. That is not an exaggerated expression. It is a fullblown crisis in europe. Regulators have germanys biggest bank, deutsche bank, got its on its knees. Here is the question, do they bail them out or dont they bail them out . If they do bail them out, what are the consequences . Layfield in bermuda, what do you say about bailout or no . I think they will bail them out. Look what they did with greece, when they bailed them out they were bailing out german banks. They already did it with commerzbank. It will be unpopular. This is something that the Angela Merkel will feel she has to do. Stuart larry levin, do you think there will be a bailout . I dont think there is any question there will be a bailout. They can follow our road map which isnt a good road map but it is one to follow. They wait for the economy to get better and theyre waiting like were waiting. Stuart i will break away from our Financial Coverage at the moment. I have more pictures coming in from a train crash into a platform we believe in hoboken in new jersey. This is major rail commuter line. It brings people into new york city from suburbs much new jersey. Extremely active. A train failed to stop as it came into the station. Ashley pictures were seeing, stuart, came in at prem does case. At left front car ends up on the platform. Concern about Structural Integrity of the building. Concern part of the roof collapsed. Stuart really . Ashley this is major transit hub that links new jersey to manhattan, across the hudson river. Obviously the station is shut down. Reports of multiple injuries. We have not had any recent word on that but obviously authorities are trying to get in there, secure the scene and get anyone out that needs help. Stuart were not suggesting for one moment there is Financial Impact from this. There is not. Were simply bringing it to you because this is happening now. This is Major Incident right there at hoboken station. The train crashed right into the platform. Multiple injuries reported. No details as yet. What do we have pictures from outside you say . Ashley outside the terminal. Stuart show them to me please. That is outside live shot. Authorities arriving in force obviously. This is happening right now. Handheld cameras. Wobbly, herkyjerky stuff no doubt. This is significant incident. Again, thousands and thousands of people take this train line from new jersey getting into new york city. There was an accident. A train failed to stop. Plowed into the platform. I believe the front car ended up on the platform. Ashley sitting on the platform. Stuart questions about the Structural Integrity of the train station itself. Look at damage. Multiple injuries have been reported. Were on it. Well get updates on it throughout our program, a significant event. Back to the markets. Were going nowhere on the market i got to tell you. Were down two points on the dow industrials, 18,340. We have individual stocks making some moves here. Lets take a look. We brought you amazon which is now up a buck at 830. I think that is the stock of the day. Show me wells fargo. John stumpf getting another grilling 20 minutes now, down only a fraction. Here what you have to consider about banks, will they be allowed to continue crossselling . Wells fargo got into trouble, oned accounts for current customers, opened other accounts without customers knowing. That is crossselling. Obviously youre not allowed to do it if the customer doesnt know youre doing it. Crosssell something feature of modern banking. If Authorities Say you cant do that, that leads to fraud, that is a big problem the banks. Am i right . Liz they do 4 billion securities underwriting in california. 11 total issuance. Second biggest underwriter in california. Stuart theyre cut off from that 12 months or maybe longer. What else have we got . Individual stocks making a move. Show me please. Show me the market scan. All 30 of dow stocks, get a sense of overall market. Did i do a little shimmy . Ashley you did. Stuart watching debates too much. Ashley feeling your mojo. Stuart i have got eight of the dow stocks up and 20 of them down. Weve got a little bit more info coming in on the train crash. Let me repeat here. Ashley hearing from reuters, stuart, more than 100 people were injured in the train crash. There was a big fear mass casualties. There you have it. Over 100 injured. Were continuing to get more and more information. Stuart we have to wonder about the future status of that train line, and bringing tens of thousands of commuters into new york city in the future. We mentioned earlier that the Structural Integrity. Train station itself is in dispute. Look at that. The roof has come down. Ashley yes. Stuart there will be questions whether you can use the train station and if so, how much you can use it. This will be a significant story in the northeastern part of the United States affecting commuting into new york city. Live shots there. This is how the authorities are cordoning off the area. They have to get casualties out. They have to figure out what to do with the building. They have to figure out what to do with that train and what theyre going to do tomorrow morning. This is a big deal. Back to the markets please. We dont have Significant Movement in. Stock market thus far. Were down 18 points, 19 points on big board. Thanks for everybody participating what we got going for us here this thursday morning. Well be back. This woman owns this house, with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Stuart everyone, you are looking at hoboken train station, that is in new jersey. A commuter train crashed into the platform at the hoe hoboken station. We understand there are a lot of casualties. 100 people plus injured. That is the number coming in to us. Left hand screen, live shot, i think train Passengers Evacuated from the station. We do know that the train plowed into the platform. It hurt the Structural Integrity of the entire station. Some of the roof came down. What else have we got ashley . Ashley looking at aerial footage. You can see the roof of the structure buckled in where the train crashed. Looks like it hit a support beam and that brought the roof down. Not only trying to help people get out of this, but theyre concerned about the Structural Integrity of the building. Stuart this Train Services the valley line. Im sure not most people are familiar with that. It comes through bergen county, a wealthy suburb of new jersey. A lot of people on the train this morning will be people that work in wall street on the financial district. Thats what that train line does. Tens of thousands of people every single day commute into new york city on that train line. And this morning it crashed. This took place, im thinking about 45 minutes ago. Is that liz reported possibly more than 100 people injured. Looks like new Jersey Transit reported that multiple passengers are trapped. That is issue as well. Stuart now were in rescue operation. Ashley the structure above them that is very tenuous at best. Stuart this is indeed a serious developing story. Im not trying to imply that there is any relationship to the financial markets. There is not, period. It doesnt exist. But this is a developing story right now and it is very serious. Youre looking at live pictures as people approach the train station. Theyre looking what is going on. This is coming in from private videophones. We do know that this occurred about 45 minutes to one hour ago. The train did not stop as it approach ad terminal in hoboken. It plowed into the platform. We understand that the front car of the train ended up on the platform. And as we said, part of the roof of the station collapsed. 100 injured. As liz reported from new Jersey Transit, there are people, we believe, who are trapped on the train. A very significant accident. As i said, this brings tens of thousands of people, commuters into new york city, each and every morning. The train station is damaged. The train is now having to have people rescued from it. This suggests that hoboken train station and the whole commute into new york city from wealthy suburbs of new jersey, that, i dont know how this is going to work out for the rest of the week. Clearly they have a very serious problem. Reports of over 100 injured in that new jersey train crash. Reports that people are trapped inside. Ashley . Ashley happened around 8 30 this morning. So that will be a very crowded train for people trying to get into manhattan before 9 00 a. M. Packed. Stuart some of those trains i would guess carry 500 people. I should not put a number like that because im really guessing at this, but it has to be in the several hundreds of people who are on it. Live shots now. Law enforcement and rescue authorities arriving in force. As liz mentioned a moment ago, new Jersey Transit said there are people trapped inside of the train. Youre looking at rescue forces going into action as we speak. See how far the camera shot is allowed to go. Clearly approaching the train station. At some point authorities stop the camera guy, say hold on, you cant go any further. Rightly some you cant have camera people getting inside of a building where the integrity of the structure is in question. So we got new jersey train crashing into the platform. Ongoing situation in new jersey. Again, nothing to do with the financial markets. We are indeed a financial program. When Something Like this happens we bring it to you. You want to see this. This is a big deal. Also happening today, and this also is a very big deal, about 12 minutes from now youre going to see wells fargo, the chief there, john stumpf, he is going to be grilled all over again by politicians. Lefthand side of your screen. John stumpf already arrived on capitol hill. He is in that building. He stand momentarily. Youre going to see it. Youre going to see politicians absolutely outraged what wells fargo has done. To some degree they will be grandstanding. He have one of those politicians is a house member. All of them up for reelection in november, 40 days away. They will take the opportunity to bash this bank. Maybe it deserves it. Wells fargo started over two million phony accounts without the accountholders knowing about it. Some of those people went through hell. John stumpf, the leader, has already given up 41 million worth of stock that has been taken off of him. We believe there are more taking off him still to go, whether john stumpf or other executives. There is our guy on the lefthand side of the screen. That is our guy from fox news being told to get out of here, move backwards. He had to retreat from the new jersey train station, hoboken where a train crashed around 8 30 this morning. Hour and 20 minutes ago. I did take a personal note. I did say that my daughter might have been in that area. Allclear. She is fine. She ariffs at work, 8 30. That is mr. Leventhal, our guy. Rick leventhal. Live pictures. Keeping him from the train station. He is Walking Around to get view elsewhere from the train station. Ashley . Ashley we have a witness saying train never slowed down. Plowed straight into the terminal. Crashing on to the platform into the reception area. Stuart were not going to speculate what middle east happen, if that is accurate, it didnt stop, it plowed into the reception area. Ashley yes. So it jumped the tracks on to the platform, slid into the reception area. So questions remain were people injured that were not on the train but just standing near the platform. Liz indication, ashley, we were reviewing overhead shots of helicopters, force of it was so powerful, looked like at least five train cars were buckled and looked like they were off the tracks. You see the force of it in those overhead shots. Stuart you reported earlier that new Jersey Transit says some passengers are trapped . Liz possibly multiple. Stuart that explains all the rescue vehicles we see piling up there. On lefthand side of your screen, what youre see something a fox news camera live following you are own reporter rick leventhal. He is told to get away from the station. Dont go any closer. Approaching authorities from a different direction. He is trying to get a close look at the train station where this accident occurred. Lets see how far he gets. Well keep the camera on him. Right hand side of the screen, pictures from inside of the train station, taken shortly after the accident occurred. Again, the lead car of the train plowed into the platform, did not stop. The witnesses say it didnt even slow down. Ashley didnt slow down. Stuart plowed into it. People trapped. 100 injured. Ongoing situation here. Looks like, say that again, producer . Okay, weve been told the last of the injured have been pulled off the train. As many as 100 have been injured. Is that accurate . Ashley thats stuart many people on the train. There would be hundreds on the train. Many did in fact walk away. Ashley yes. Stuart there may well be serious injures at front of the train. Ashley you can see parts of the roof sitting on top of the car of the train. Stuart were getting this information from the Police Scanner. It is very preliminary information obviously. As you might imagine. At a scene like that, when this kind of thing happens right in the middle of rush hour, thats when it happened, you can expect a degree of chaos and confusion. You can expect that the full details and perfect he details are not yet known. But you can be absolutely certain this is a major trainee vent in new jersey. And well have a very Significant Impact on that station and on commuting into new york for some time to come. May i draw your attention to the bottom righthand corner of your screen. That is the amazon stock price, obviously totally unrelated to the train accident. Look at this thing go. 834 per share. It is up 6. It is up 6. 28. 835 on amazon. Trading began 18 or 20 minutes ago. That thing has gone straight up. That is the stock. Day if not the stock of the year. May i remind you amazon was 400 a share 16 months ago. It is now 835. May i remind you, it was at 250 four years ago. It is now 835. And still going up. What an extraordinary situation. Ashley incredible story. Stuart on your screens, main part of your screen, that is the accident at the hoboken train station. Well keep our cameras on that and give you updates whenever we can. That is a significant event in new jersey. Commuters coming into new york city. In a moment were going to get an expert on the phone who knows something about what happened right there. Well have him in a moment. Dont forget, five minutes from now, you will be watching another grilling of the top guy at wells fargo. He is on the stand again. Politicians will go after him. Because, his bank started two million fake accounts. Didnt tell customers. Some of them were put through hell. He is already being grilled by the Senate Banking committee. This morning it is the house that has a go at him. It will be political theater on the screen. You can watch all kinds of politicians go after the head guy at wells fargo. Got it. Look at your screen again, now it is up 6. 50. Amazon, 835, still going up. What extraordinary stock. Left side of your screen. Live pictures coming to us. Taking injured off the train and out of the station. We understand over 100 people have been injured. Again a personal note, my daughter who uses that train station got out of there way before the accident occurs. Im sorry to bring you personal details. This is a big deal today. I have to tell her mom what is going on here. Were hearing as many as 100 people injured. How seriously i dont know. Were following the Police Scanner. Ashley the height of the commuter rush hour. Which in turn it brought a section of the roof down. Stuart that was from a witness. Ashley yeah. Stuart were getting other information from the police canner which were following very closely. There is a report maybe there has been a fatality. Okay, that is just taken off the Police Scanner. It is a very preliminary suggestion that there may be one fatality. That is on lefthand side of your screens. The other picture was taken after the train plowed into the platform in hoboken. Ashley we know this is commuter train, stuart but the front two cars are especially crowded this thursday morning standing up. They get from the hoboken line to the path line which goes across manhattan getting to work. Unfortunately the front two cars are the most grounded. Stuart train right the station, you want to be at front to get to wall street. Ashley exactly right. Stuart you are packed into the front there. All regulars will be. They want to jump out as soon as train stops. Hurry off to the path train and hurry off to new york city. Ashley every morning. Stuart this train crashed 8 30 in the morning. Prime time for financial district commute years to get in by 9 00. Stuart what a tragic situation. It is unfolding as we speak. It happened 87 minutes ago. Already the authorities on the scene, loads of them. Im sorry to draw your attention to the bottom righthand corner of your screen again, drag you away from events at hoboken. Look at amazon go. It is up 7. It is reaching 835 a share. Remember, please it has more than doubled in 15 months. Extraordinary performance. Moments from now well take you to capitol hill where grilling of john stumpf continues all over again. John stumpf runs wells fargo. He have already had to disgorge 41 million of income he earned during the period they were opening two million phony accounts. All of this is going on as of this morning. John stumpf just sat down. It is 9 58 and a few seconds. He is due to begin at 10 00 eastern time. On the righthand side of your screen, there is john stumpf, the ceo ofwells fargo. Very unpopular banker at this point. Momentarily, literally within 90 seconds the chair of the House Financial Services committee will gaffe svelte committee to order. That is jeb hensarling, republican. It is his committee. He no doubt will have opening statement. Maxine waters will follow. She is the Ranking Member of the House Financial Services committee. She had problems with the Banking Services industry in the past. Well see what she has to say to john stumpf. It is almost 9 5950 seconds. The hearing will open. Lefthand side of the screen that is the fox news camera trying to get a good look at the hoboken train station where a train plowed into the train platform. We understand there are 100 injured. Early reports from the Police Scanner of maybe one fatality. We understand that those injured people have now been taken off the train. The train is now empty. A witness says it never stopped. Ashley never stopped. Stuart didnt slow down. Ashley right into the terminal. Stuart if you know anything about trains you know they carry a great deal of weight and have extraordinary momentum and force. If they plow into a platform, that is a very big deal. Youre watching it live. All right. Trying to explain viewers what weve got. Lefthand side of the screen. Listen to this please. Give us another update please . I will do it shortly. What happened . Still being determine what happened. We have 100 plus injuries. Most of them critical. We have some injuries to our crew. There were approximately 250 people on the train this time of day. 83 8 into hoboken terminal. Still determining cause of accident. Not going to guess. Heard more than 100 plus. Thats correct. More than 100 plus. All of them on the train . Yes. Many of them critical . Many critical. Jennifer nelson new Jersey Transit night multiple, comfortable with multiple. Most of them . Multiple critical injuries. Reports that train was going full speed when it went into the station . I cant tell you that right now. Ongoing investigation. I will not guess on speed or anything like that. You have well over 100 injuries . Correct. Misdemeanor critical . Correct. Do you have another help here . Are there multiple Law Enforcement agencies responding. Ems task force is activated. Local area hospitals bringing staff in. We have at least 20 ambulances staged if knot more. Left with some. Injure personnel. Ashley wells fargo. Active rescues, people still down there . I cant tell you that. How many hospitals are get that number for you. I dont have it. From the area, newark. Stuart if youre listen in to this, the critical piece of information which we just received from that lady, new Jersey Transit laid i did i, i do believe, she said there are multiple critical injuries. That is very important point from the train accident at hoboken station in new jersey. Do we have mr. Russell quinn on the line . Im there. Stuart russell, youre a Rapid Transit accident investigator. We understand this train plowed into the platform. Didnt even slow down. Now that would suggest enormous force at the critical point of hitting the platform. Are you there with me on this . I am but i dont think the speed was probably that great. Probably as low as 10 miles per hour, maybe less. Stuart but we do have reports of multiple critical injuries . Yeah. Youre going to have a lot of secondary impacts. People inside of those cars, probably getting ready to get off the train, standing in the aisle, hitting other folks and seeing things of that nature. Stuart have you investigated accidents of this kind before . Yes, i have. I have worked for the National Transportation safety board for 22 years. Stuart okay. Im retired from them. Stuart now we have got structural damage to the station. Obviously structural damage to the train itself. How long do you think is this station going to be out of action . Thats a critical question for commuters coming into new york city. Well, they will probably get, the train, is damaged as it probably could be. A lot of structural damage. That is going to be the key factor here. They will be able to pull the train and get cars out relatively quickly. Theyre going to have to wait until the safety board probably gets on scene and takes measurements and things like that. Stuart russell quinnby. I have a huge busy news day today. Thank you for being with us. Were much obliged to you, sir. This is on going situation. Again the news is this. A train plows into the platform at hoboken train station. Multiple critical injuries. That is the state of play there. Bottom righthand corner of your screen, amazon keeps on going up. Also at this time, were going to capitol hill where there is a hearing. Wells fargos chief john stumpf is facing the music from the house this time. What have you got, liz . Liz 100 plus injured. 250 people were on the train. Stuart yep. Liz problem was they were packed into the first and second cars because that is easiest access to the terminal. So very crowded cars right there. Stuart jeb hensarling, chair of the House Financial Services committee, opening proceeds in the vision of wells fargo and john stumpf. Listen in please. All charges must be thoroughly investigated and all culpable individuals must be held accountable. While the fine wells fargo will pay, roughly 3 of the banks second quarterly profits is tiny by wall street standards, the harm caused to consumers and employees is from the. To the factory worker who had her credit score dinged because of the fraud wells fargo perpetrated, the cost is big. To the waiter at the local diner living paycheck to paycheck who had to pay fees associated with fraudulent account, the cost is big. To the wells fargo employee with kids to support, who lost her job because she refused to participate in the scheme the cost is big. We will make sure those who were betrayed by wells fargo are not forgotten. It is on their behalf that our committee has launched an in depth investigation, mr. Stumpf, of your banks activities. Let me be clear, todays hearing is just the beginning of our investigation. It is not the end. As i speak our committee is gathering thousands of pages of records and documents from both wells fargo and the relevant federal regulators. In the coming weeks we will be questioning wells fargo executives. If necessary i will not hesitate to issue subpoenas because we will do what is necessary to get to the bottom the of the matter. Mr. Stumpf, we dont yet know what you knew, when you knew it and what you chose to do about it but we know it happened on your watch and we hold you accountable for the answers to why this happened. At last weeks Senate Hearing, you were uncertain of many matters. In the intervening days we trust you had a chance to refresh your recollection, to review your records. Therefore we hope and expect you will provide more complete anticipates today. We need to know exactly when and how you and other executives at wells fargo found out about this endemic fraud. We need to know what you directed others to do about it when you found out. We need to know today who in management is being held accountable. We already know as far back as 2009, former wells fargo employees started filing wrongful termination lawsuits alleging fraudulent accounts and improper sales tactics were taking place. Approximately 5300 wells fargo employees were fired over a fiveyear period for these improper sales practices an perhaps as many as two million unthorpe rised accounts were fraudulently opened. Based on these facts we will also be asking serious questions of our regulators in the course of this investigation. If occ had examiners on site at wells fargo during the time when these fraudulent accounts were opened and cfpb was conducting regular examinations why did it seemingly take the l. A. Times to expose the fraud . Once exposed why did it take almost 18 months for the cfpb to initiate supervisory review. Today i dont know the answers to the questions. Perhaps our federal regulators deserve a pat on the back or perhaps they deserve a swift kick on the backside, well find out witch. We launched this investigation ultimately because it is our job to hold both wall street and washington accountable and protect consumers from excesses of both. True Consumer Protection is the preservation of competitive, innovative, free markets that are vigorously policed for force, fraud and deception. Mr. Stumpf, i know that wells fargo represents an iconic brand. I know that your bank has a very rich and proud heritage. I also know that you have hundreds of thousands of good employees who had nothing to do with this sordid affair. Who do good work building their communities. But this sordid affair does remind me why i trust markets and i do not trust individual companies. Mr. Stumpf, i rye gettably have a mortgage with your bank. I wish i didnt. If i was in the position to pay it off i would because you have broken my trust and you broken the trust of millions of others and it will be a long, long time to earn that trust back. I now recognize the Ranking Member for five minutes. Thank you very much, mr. Chairman and i thank you for agreeing to hold this hearing so we can examine the fraudulent activity that occurred at wells fargo. Mr. Stumpf, the word games stop today. Barring stuart on righthand side of your screen, full screen, well update you on the events in hoboken new jersey. A commuter train crashed into the platform of that station. We have one confirmed death. We have multiple critical injuries. Up to 100 people on the injured list. The train around 8 30 this morning carrying commuters from bergen county, new jersey, came and hit the platform. Didnt slow down. Didnt hit. Plowed over the platform, hit pillars report supporting station. Hoboken train station. You have one confirmed dead, multiple confirmed critical injuries. That is the state of play there. Meanwhile, on the other side of your screen youre about to see, Maxine Waters opening up testimony, her questioning for john stumpf at wells fargo. Thats where we are this morning. Watch, listen to Maxine Waters. Even bragged about behavior amounting to widespread fraud. Today i hope you came prepared to explain both how and why. While you personally told me you were prepared to take full responsibility were seeing your testimony in front of the Senate Banking committee and there are still answers that need to be given. The testimony that we have witnessed in the senate trying to explain what happened is not satisfactory and we still do not have all the information we need to understand how this happened. When the sales culture turned toxic and who knew about it and when. Despite your statements to the contrary, any legitimate investigation shows that executives at wells fargo knew, either knew or should have known much earlier than 2013 these practices were taking place. I think that executive conduct at wells fargo deserves a thorough investigation by the department of justice. Someone is responsible for the broken culture that led to this behavior needs to be held responsible. Not the lower level employees that have been left to bear the weight of the mistakes that have been made. This issue is personal for me. The size of wells fargos footprint in california means that many, if not most of the employees and customers who were victimized by this are my constituents and neighbors. They dont deserve to have their trust violated by wells fargo. No one did. Im still receiving calls in my office complaining about wells fargo now. And one caller described how he went into the bank, complained about excessive accounts that he knew nothing about. Employees called the police on him and he was arrested. Yet violating the Publics Trust to drive up profits is exactly what wells fargo did. In the Senate Hearing, it was revealed that even you benefited from that, mr. Stumpf. Your own bank account benefited from that deception. I know you said you take responsibility for these practices, and that you are conducting your own investigation, and that you and other managers are forgoing some of your compensation. That is welcome. But let me be clear it is not enough. Unfortunately this is not the first time weve seen abusive practices at wells fargo. We thought that you were working on these practices six years ago. Your mortgage executives said right here in this very chair, reassuring my subcommittee you were committed to fixing wells fargos forge remember i of mortgage documents. Yet we havent seen the problem fixed. Weve seen it migrate to another part of your bank. So i hope today we can hear from you, mr. Stumpf. Because the American Public deserves to know what happened at wells fargo. Why customers were ripped of so blatantly and repeatedly. You can rest assured this is just the beginning. That we will be demanding more information until we get to the bottom of this. And of course i urge your cooperation. I must tell you, that i have known you for a while. I have communicated with you. At times you have been very helpful to my constituents. So im very disappointed and we must get to the bottom of this. And i want to be able to receive the documents and information requested from you. I have been told it has been refused. I think it is in your best interest to come forward with the documents. Mr. Chairman, i yield back the balance of my time. The with respect till lady yields back. We receive the testimony of john stomach, chairman and ceo of wells fargo and. He held a number r number of Senior Management positions at wells where he has worked for 34 years. Mr. Stumpf, rise and raise your right hand. Do you solemnly swear or affirm the testimony you are about to give will be the truth, the whole truth and nothing but the truth . Thank you, please be seated. Let the record reflect that the witness has answered in the affirmative. Without objection, the witnesss written statement will be made part of the record. Mr. Stumpf, you are now recognized for five minutes to give an oral presentation of your testimony. Chairman hensarling, Ranking Member waters, and members of the committee, thank you for inviting me to be with you today. Im the chairman and chief executive officer of wells fargo where i have worked for nearly 35 years. It is my privilege to lead this company which was founded over 164 years ago and played a vital role in the financial history and development of our country. I am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members and to the American Public. I am fully accountable for all unethical sales practices in our Retail Banking business. And im fully committed to fixing this issue, strengthening our culture, and taking the necessary steps and actions to restore our customers trust. We should have done more sooner but we will not stop working until we get this right. This morning i will update you on a number about steps taken to address our retail bank sales practices problem, and make things right for customers who may have been harmed. At wells fargo we have new leadership in our Retail Banking business focused on insuring all team members in our retail bank provide the best service to our customers. Secondly, we recently announced the elimination of Product Sales goals for everyone in Retail Banking effective january 1. Today i am announcing that we are accelerating this process and ending all Product Sales goals effective at the end of this week. We want to make sure nothing gets in the way of doing what is right for our customers. Also we now send out to all customers a confirmation email approximately one hour after opening a savings or Checking Account and an acknowledgement letter after a customer applies for a credit card. Were also making it right for customers. We have begun contacting the customers with open credit cards identified by pricewaterhousecoopers to determine whether they wanted these credit cards. Its a early in the process but so far we have reached more than 20,000 of these customers and talked to them about their credit card accounts. Fewer than 25 have told us they either did not apply for the card or they can not recall whether they applied or not for the card. For those customers who want the card, the card will remain open. For any customer who does not want their card, we are closing the account and informing the credit bureaus. Any fees these customers may have paid already has been refunded, and we are developing a pros test to deal with process to deal with any other forms of harm. For deposit customers we refunded fees and contacting every single one of them across the country to insure that we have a full understanding of every customer affected by this problem. In addition, we are voluntarily expanding the scope of the reviews we have done to go back in time to 2010 and 2009. While these issues we will discuss today are deeply disappointing, and will take time to repair, they do not represent the true culture and nature of wells fargo. Some have suggested that the problem was crossselling, but that is not the case. At its core, crosssell something all about deepening customers household relationships with products they want, they use and they value. It is not about improper sales practices used to create unwanted accounts. Thats not good for our customers, and not good for wells fargo. If we take care of our customers they will deepen their relationships with us and trust us more with their business. That is good for customers who have benefited from lower costs we pass on and that is crossselling done the right way. In closing i would like to talk about my commitment to accountability. Of the when i say i am accountable referring to the actions our board took at my recommendation to forfeit stock awards the largest part of my compensation for the past three years and any bonus this year as well as my agreement to work without salary until the board completes its investigation. I respecter and accept the boards decision. And when i say im accountable i also mean accountable for leading wells fargo as a company that restores the trust of the customers, team members and investors. Thank you for this opportunity to testify today. I want to bring you some new information what is going on the righthand side of your screen. If youre just joining us, the news is this. A commuter train plowed into the platform at hoboken station in new jersey. They are commuters coming into new york city, often to work in the financial district downtown and wall street. Update on the situation. One woman is confirmed to have died. Two people have now been extricated, that means rescued, from the wreckage. About 100 people have been injured in total. Some of them, multiple critical injuries. The train jumped on to the platform, hit the stands which support the roof. Part of the roof fell down. This looks like a very longterm problem for hoboken train station and for the tens of thousands of commuters who use it every day to get into new york city. Back to the hearings on capitol hill. Jeb hensarling. Who is the highest person in the Management Team who has been dismissed because of these activities . Well,. Thank you, mr. Chairman, for that question, as you know, or maybe you dont know, within the 5300 there were managers and managers, and managers of a manager. Were doing a full review. Were these branch manners . Yes, 10 or more were. Nobody above of the Branch Manager level . There were Branch Managers of the Branch Managers and managers of those within the line of business but were doing a full review of other control functions within the company. That process has already begun. The board will be involved. Management will be involved. As i mentioned we and when will this be complete . When will your own internal investigation be complete to hold management accountable . I cant give you a specific time frame, mr. Chairman, but i will tell you were moving on that directly and well get dot bottom of this. Anybody at the Bank Holding Company level being held accountable . People will be reviewed across the board at Holding Company activities, corporate activities. Anybody who is involved in promoting or supporting this behavior will be held accountable. But own Holding People accountable, isnt it true, mr. Stumpf, the Settlement Agreement that they entered into with the occ, l. A. Attorneys office, no individual admits guilt, is that correct . Is that part of that Settlement Agreement . We either admit or deny. So the facts there are the facts that we agreed to. Mr. Stumpf, lets go back to 2011, which i think is the first year we know for a fact that these fraudulent activities were taking place. The records that i believe your bank has shared with us show that 939 employees were terminated from the Retail Banking sector for improper sales practice in that year. Does that comport with your memory . Yes it does, mr. Chairman. So in 2011, isnt it true that wells fargo entered into a Consent Order with the Federal Reserve that required wells to cease and desist from certain practices in the mortgagelending department and that you paid an 85 million civil penalty . Is that true . Mr. Chairman, thats true. That was in a different business area but that is a true statement. It is in a different business area but i will read from the Consent Order. Quote, wells fargos internal controls were not adequate to detect and prevent instances when certain of its salesperson nell in order to meet Sales Performance standards and receive incentive compensation altered or falsified income documents and inflated perspective borrowers incomes to qualify those borrowers for loans that they would not otherwise have been qualified to receive. This sounds eerily like the Retail Banking division. So, also as i understand it, the fed required wells fargo to submit a plan to investigate and to change policyies and procedures. So i think you testified on the senate side that you were not personally aware in the problems in the Retail Banking division in 2013. Certainly youre aware of the problems in the Mortgage Lending Division in 2011, correct . That is correct. Mr. Chairman, we shut that division down. That was even shut down. If you saw the problem in one area of the business, why didnt you thoroughly investigate in the other . There is no question, mr. Chairman, we should have done more sooner. It just seems, mr. Stumpf five years later your bank is being fined for exactly the same transaction. Again it feels like deja vu all over again. I hope and trust, please tell me the fines are not a cost of doing business for wells . Mr. Chairman, this is not cost of doing business. This has been a serious. I want to say, 268,000 people came to work this morning at wells fargo trying to do their very best to serve customers. They do wonderful, every day, and i dont want our culture to be defined by these mistakes. And we take accountability i understand that, mr. Stumpf, but appears to be a little late. Particularly when you get caught doing it five years ago. You get caught doing it once again. Somebody has to be held accountable. I now yield to the ranking. Thank you very much. Mr. Stumpf, you have said repeatedly you were not aware of this widespread fraud in your bank until late in 2013. It appears that there were activities going on you may have known much earlier than that. For example, in 2007, just months after you became ceo, the sales quality manuel for the community Banking Division was updated with your executive guidance, as the manuel states. That sales guide reminded employees of what should have been obvious. That they needed to obtain a customers consent before opening accounts. And so am i to understand that you discovered that there was something going on and there was a need for you to do this . That manuel also said that sales practices that showed quote, questionable activity, unquote, would be sent via high priority to Bank Executives. So it appears that you knew something in 2007, that unauthorized accounts were big enough problem that you had to correct your employee manuel. And as early as 2008 i have documents from Court Filings showing your employees were contacting your ethics hotline reporting bank fraud and complaining to managers over unauthorized accounts. And so it looks as if you certainly knew in 2008. Once more, i have here a Consent Order with the fed from 2011 that puts your company on watch for sales quotas and compensation screams that pushed employees to break the law. Does this sound familiar . I, Ranking Member, i acknowledge that we had a 2011 order from the Federal Reserve. And i think weve always known, any sales organization, youre going to have to be diligent because not every team member will do everything right every day. So we have controls built in. We have ethics lines, and i knew, around i still know that you know, you put people to work every day and mistakes are going to happen. It when i learned that this problem has been growing, it had been more prevalent and in a certain part of the country which happens to be in the wonderful part of california which you live. So these are things weve been working on. All of our strategies around Training Team members which get two weeks of classroom training before they go out into a branch is about doing things right, about ethics. And i i also just want to remind the committee that there are the vast majority of our people who had the same opportunities, the same training, the same goals who did it right every day for our customers. In fact, our Customer Loyalty scores now are the highest theyve ever been in our companys history. Let me just point out some other activities that should sound familiar to you. While you were under the Consent Order for the mortgage arm of wells fargo, this fraud was surging in the retail arm of wells fargo, but you didnt connect the dots on these highlevel trends across the bank. Do you or doesnt you know in 2011 that perhaps your sales incentives were driving this fraud . Congresswoman, i knew that at least i know today that we should have done more sooner. But maybe and not only maybe, some of our people and, again, its 1 , but thats a big number for a big organization. Anytime, any one time we have 100,000 people in our branch network, and if 800 people for whatever reason either misunderstood or used this as a way to be dishonest and break our code of ethics and do something wrong for our customer and something wrong for us, thats why were removing sales calls. Theyll be gone as of this weekend. In fact, we dont even think theyre an important requirement anymore for us to continue to grow. Mr. Stumpf, some people assume you changed your agreement to add forced arbitration clauses and that these clauses proved to be incredibly helpful when you used them to dismiss multiple customer lawsuits. Is that true . Thats actually not true. In this case for any customer that might have been harmed in this situation, were also paying for a mediation process so they have a mediator. Now, we will keep an eye on the hearing, lefthand side of your screen. Stuart the real action this morning is in that train crash at hoboken, new jersey. When i say train crash, thats a little thats not quite right. What happened was a train coming into the terminal at hoboken did not stop, didnt even slow down as we understand it, plowed into whats called the concourse area. Im going to break away for a second. My colleague, james freeman, with the wall street journal is with me. He has used that train station on multiple to occasions. Now, you know the station well. Let me just try to have you take me through this. The train plows into not the platform, but the concourse area with which youre familiar. Right. Its an area where you have a lot of the train tracks have dropped people off, and people are walking, essentially, right in front of where this thing hit. Theyre walking from their trains that have brought them in from the various new jersey suburbs to the path train which will take them to lower manhattan. So especially at rush hour, a lot of people moving through there. Theyre walking to the path train, theyre perhaps stopping at a newsstand which is right in front of where the train hit, various shops and restaurants. And as you mentioned, the waiting area right there too. So as you mentioned, very different layout from a lot of train stations. Thisit is not a big separation between the platforms and where you have concourse areas and people Walking Around. Stuart and it was train number 1614, as i understand it, coming in from bergin county, a wealthy suburb of new jersey, delivering commuters to whats called the path train. They get out of the train, they get onto the path train, and they head straight into the financial district of lower manhattan. Due in at 8 38 into hoboken. It was running late, from what we understand. Stuart so the actual accident, the crash occurred closer to 9 00, yeah. Stuart now, there were 250 people onboard the train, thats according to new Jersey Transit. Up to 100 of them were injured. New Jersey Transit says that there were multiple critical injuries, and we have one confirmed death at this point. James, most of the people on that train would have been packed right onto the front, the part of the train that went straight into the concourse area where the major impact occurred. Thats right. Youd have people who wanted to, obviously, get as quickly as they can to that path train, so theyre gathering up front, theyre hoping to take a quick walk, basically, right in front of where it hit, go down the stairs and then into the path trains that are waiting there to take them to the World Trade Center or to other places on that jersey shoreline opposite manhattan. But youd have a lot of people standing up front. And is as is often on these commuter trains, at rush hour youd have a lot of people standing, period. The seats are filled, and then also often areas between cars in the walkway is filled as well. So could be really devastating for people up front. Stuart when you put it like that, you can understand why there are and have been confirmed to be multiple critical injuries. Right. Yes. And an official on the scene telling local reporters 250 people on the train, if theres 100plus injuries, that shows you the severity and the force of the impact. Stuart one more point. The train jumped over the tracks, jumped onto the concourse area as james described, hit some of the what is pillars. Stuart the support, the roof of the train station. Yes, which brought the roof down. You can see pictures, parts of the roof is sitting on top of some of the cars of the train. So a lot of force. Pushing the first car into the reception area. To james point, we dont know the extent how many people could have been injured waiting or Walking Around on the platforms heading to that path train. Thats right. There would be a lot of people walking through that area this time of day. Stuart yes, indeed. Thats on righthand side of your screen. Lefthand side is the hearing on capitol hill with the ceo of wells fargo. Wells fargo started up two million upon theny accounts, didnt phony accounts, didnt tell customers what theyd done. Some of those customers went through hell with their Credit Rating trying to sort that out, some of them lost a small amount of money, and the authorities, the top guys at wells fargo didnt come clean very quickly and profited mightily from what happened within their bank. James, they are piling on to wells fargo bigtime. Stuart all the politicians, theyve just gone right overboard to hit them hard. Do you think its justified . I dont. And i think what you have to realize here is that wells fargo did not benefit. They were basically getting ripped off by employees which they fired. Theyve got 100,000 people who work in their retail branches from a period 2011 to 12015 2015, they were firing 1 of them each year because these people were creating the accounts to, basically, rip off the bank. Be this was a move that did not benefit wells fargo. What it did is it triggered payments from wells fargo to these employees, whom they fired. John stumpf at the moment is being asked when did they know what was going on. Lets listen in. But i do think there is some question here whether, you know, in this particular situation whether the company would be better served with those roles being separated. Yield back. Time of the gentleman has expired. The chair now recognizes the gentlelady from new york, ms. Mama loney, Ranking Member of our ms. Maloney, Ranking Member of our Capital Markets subcommittee. Mr. Stumpf, we know now that whistleblowers first contacted the board about the fraud at wells fargo in mid 2013. And you said in your Senate Hearings last week that you first found out about the fake accounts in late 2013. And the l. A. Times article about the scandal was published in december 21st, 2013. I have right here your form for filing which id like to submit to the record . Without objection. That shows that on october 30th, 2013, you sold 13 million worth of wells fargo stock on the open market. That is by far the largest open market sale of wells fargo stock that you made in your nine years as ceo. So my question is, did you dump 13 million of wells fargo stock which you did through your family trust right after you found out that your bank had been fraudulently opening hundreds of thousands of scam accounts ripping off your customers . Thank you for the question. First of all, i the vast majority of our people go to work every day excuse me, that was not my question. But ill get to excuse me, excuse me. My question was did you dump the stock after you found out about the fraudulent accounts . Because it seems that the timing is very, very suspicious, and it raises serious or questions. I did not sell shares at the time because anything related to but your form says you did sell the shares. Today i hold four times as many shares as im required finish. [inaudible] did you sell these shares or not . I sold those shares, and i sold them with proper approvals with no view about anything that was going on with sales practices or anything else. Well, it seems very, very suspicious that your largest sale was right after your 1. 8 trillion bank was turned into a school for scoundrels. You acknowledge that your bank fired over 5,300 people who got caught willfully defrauding your customers, and a recent lawsuit alleges that you fired even more people because they refused to willfully defraud customers. And then you blame the lowlevel people, you fire them. You make profits, then you dump the stock. So i just have to say that it seems that when you found out about the fake accounts, instead of helping your customers, you first helped yourself. So moving right along to the next question. Mr. Stumpf, youve said that wells fargo is conducting a review of all accounts going back to 2009 in order to identify any scam accounts. But last week in the Senate Hearings you were asked if you would extend the review period to before 2009, and you refused to commit to extending the review period back to even earlier. So if you were, if you were presented with hard core evidence that wells was engaged in some of these practices, these illegal scams prior to 2009, would you change your mind about extending the review . Thank you for that question. We have agreed with our regular haters to go back to 2011 regulator to go back to 2011. We voluntarily said last week that well go back to 2010 and 2009. Ive told our team to leave no stone unturned, and if we find a situation where a customer is harmed that goes back prior to that, we will make it right for that customer. Thank you, because i have the evidence right here, and id like to submit to the record a court case in montana in which six wells fargo employees were fired. Among other things, ordering debit cards for customers without their permission which is clearly illegal, and according to the court documents, these illegal sales go back to 2007. Without objection to. So now we have evidence of illegal sale practices going back to 2007. Will you degree to extend the review agree to extend the review period back to 2007 to cover this evidence that we are submitting today . Again, congresswoman, were going to go back to 2009. If we can find and were going to contact every customer but this is evidence that it went back to 2007. My question is and we thank you for going back to 2009. My question is, we have clear evidence that it goes back to 2007. Will you live up to your commitment of helping your customers that were defrauded with clear evidence back to 2007 . We will go back, and if we find any evidence of any customer that was harmed to 2007 through our review through 2009, we will take care of each customer. The time of the gentlelady has expired. The chair recognizes mr. Mchenry, vice chairman of our committee. Thank you, mr. Chairman. So i have the honor of representing the suburbs of charlotte, North Carolina. North carolina had an incredible banking culture over decades. You had, in charlotte, first union. Homegrown bank, great reputation. Went through challenging times in the economic crisis, as you well know. But before that time, they teamed up with a bank based in winstonsalem, wachovia. And as you know in acquiring what was then called wachovia which is really first union in what coe ya wachovia, the pitch was that your culture from california was very similar to this North Carolina culture, banking culture. You know, you and as you well know, john grimes midland whos a great chairman of wachovia sort of imbued in wachovia this culture that a banker is a Civil Servant as well. Theres this obligation to society they have and their community. You eulogized him. Yes. Paid tribute to that culture. Yes. So i want to think about that culture. Because what is so sad to me is that pitch of culture doesnt conform with my experience with my constituents in North Carolina. It doesnt conform what i know about first union, what i know about wachovia, and this cultural pitch that you had in acquiring them in the financial. I know you have huge head count in North Carolina, and were grateful for it. But whats sad to me is the impact of this on them and those employees you have in North Carolina. So i wanted to look at your code of conduct that you tout. So lets look at your code of ethics and business conduct. You said in your message as ceo, we are all responsible for maintaining the highest possible ethical standards in how we conduct our business and serve our customers. The code of ethics, in fact, says our code applies to all team members including officers as well as directors of wells fargo and company and its subsidiaries. It also says we are all accountable for complying with the code as well as all Company Policies and applicable laws. And finally its critical that all team members have a solid understanding of our companys code of ethics and business conduct and understanding that noncompliance with the policy may result in disciplinary action up to and including termination of employment. You clearly have failed. You clearly failed in your own ethical standards internally. You have broken and your companys broken longstanding law. Youve broken longstanding ethical standards that you have within your company. This has nothing to do with this debate about doddfrank or anything else. Youve broken a long tostanding law, and youve longstanding law, and youve defrauded your customers. How can you rebuild trust . How can you rebuild trust, and how can you get through this thing . What standards are you holding yourself to that sends a message to the rest of these folks in your organization that look to you for leadership and guidance . What are you doing to restore that . Well, thank you, congressman. The culture of the company is strong, and i dont i know its really hard to say that when youre before congress for the second time, and behind you was all the settlements youve had for problematic relationships youve had with your customers by taking their money. Right . Counter to the law, counter to your ethical standards. So its great you say you have a strong culture, but why are we here today . How are you addressing that . Yeah. We are addressing it. First of all, with respect to culture, you know, we have 268,000 people who have made their lifes work and careers out of helping customers. Theres people today who are out with thats why i raise this in the way that i do, by severe disappointment, severe disappointment. Thats all. You broke the law. We make the law in congress. This is not new stuff that all of a sudden congress changed some rules, and you cant have your employees create fake accounts and take fees from customers unknowingly, unwittingly. That is, that is theres never in Human History when that has been an ethical okay, right . Congressman so for you to say the cultures okay, this seems to me youre just tone deaf to me. The final thing you need to think about and your board of directors need to think about is the impact you have is not simply on your institution, but the wider conversation on how my consumers can access credit. And the implications on what youve done and your leadership has done has this broader societal impact that is very negative. Time of the gentleman has expired. The chair now recognizes the gentlelady from new york, ms. Ve ms. Velazquez. Thank you, mr. Chairman. Mr. Stumpf, now that you were on the senate side and you testified and we the senators asked you whether or not the 5,300 wells fargo employees that were fired for their misconduct, how many of them were fired because they failed to meet sales quotas . At that time you said you didnt know. Now that a week has passed and you have had a chance to consult your records and speak to your staff, are you prepared to tell us how many employees were fired for failing to meet their sales goals . Thank you, congresswoman. Of the 5,300, which is about 1,000 per year out of our team and i dont want to minimize it, it was 1 . We have about 100,000 people in our branch at any one time. All of those people through our investigation were terminated because of their unethical behaviors. We found them, we decided that we dont we cant have them here. They are not consistent with our culture and our ethics. Out of that 5,300 employees, were there any employee that was fired because they didnt meet their sales quota . They were, from my understanding im to not talking about the 5,300. Outside of that oh, outside of, outside of that my understanding is that people should not be fired, terminated for missing sales goals. Im not saying it didnt happen how should i trust that that was the case . And were doing a review of whatever, whoever might have been terminated for that. Okay. So my next question is if your review shows that there were employees that were fired because they didnt meet their sales quota, would you be rehiring those individuals . Yeah, well, first of all we dont have sales quotas. We have goals. And theres other goals that our people also had as part of their performance management. Were reviewing that, and were going to try to make it right for every team member. Mr. Stumpf, im sure you are aware that wells fargo is the most active sba 7a lender in the country. Correct. As Ranking Member of the house Small Business committee, i am very concerned that the Legal Practices uncovered by the cfpb on the consumer side may have spread to the Small Business side. Were your frontline employees under similar pressure to crosssell products to stuart all right, everyone. Two screens. On the lefthand side of the screen, the hearing looking at wells fargo. The politicians are going after john stumpf, the man who runs wells fargo. So far a republican has said he is severely disappointed in wells fargo. A democrat has said it is, the bank is, a school for scoundrels. So far it has not been as fiery as the Senate Hearing ten days ago. Righthand side of your screen, a developing story of significance. A train crashed into the terminal, actually, at hoboken train station. So far we understand there are multiple criticallyinjured people, up to 100 people injured in total. We understand that one person has been confirmed dead. We also have on our news line right now congressman albio suarez who is the representative for the hoboken district. Mr. Congressman, welcome to the program. Can you hear me okay . Yes, good morning. Stuart good morning, sir. I understand that you have you have some detail on how the crash went down, what exactly happened that. Tell us, please. Well, i spoke to one of the executive directors at the north hudson Regional Fire and rescue, and hes telling me that there were 100 people on the train, one confirmed dead, two critically. Apparently, the train went airborne and crashed into an empty store. He also mentioned to me that the conductor is still alive and theyre hopeful that they can get information to see what happened in this accident. Stuart congressman, i want to repeat that. You say a witness said the train went airborne. Could you get into that a little bit more . Because that sounds dramatic, indeed. No yeah. This is not a witness, this is one of the executive directors of the north hudson Regional Fire and rescue whos present on the site. So hes in charge of, basically, trying to find out what happened. Stuart im just trying to describe the scene for our viewers. It seems to us that the train came into the station, did not slow down, crashed into the barrier at the end and then, according to the person that you spoke to, became airborne and literally plowed into the concourse area which is right at the very front, in front of the train, is that thats accurate, sir . Yes. He tells me that it plowed run into an empty store. Stuart can you give me any understanding of how long it just might take to get that train station back in normal working order . I understand that part of the roof has collapsed and that the Structural Integrity of the station may have been challenged. Can you give me an update on that, sir . I dont have an update on that. Right now were worried about how many people are hurt and making sure that everybody gets to a hospital. Thats my understanding. But as i get news during the days, im sure hell give me an update on that. Stuart congressman, thank you very much for joining us, sir. That is your district, and we appreciate you being with us. Thank you very much, sir. Okay, righthand side of your screen, late developments in the train crash in hoboken. One dead, a hundred injured, 250 people on the train, many, multiple critical injuries. We now have sound from some of the passengers describing what happened. They were on the train. Roll that tape. That was life or death. It was no indication of whether or not the train was going to actually stop. We didnt know we collided into something, we just thought something exploded. Stuart okay. It might have been difficult to cash exactly what she said there, but she didnt know for some time that the train had crashed into the far end of where it was going to. She thought there was an explosion. I mean, thats entirely understandable. It must have made one enormous crash reports coming in that the train came barreling into the station, hit the concrete barrier and then went airborne and hit the roof. So thats just addenda to what the congressman was telling us. Stuart this is an extremely important story because that train line carries tens of thousands of people a day. Yes. Stuart from new jersey into primarily lower manhattan, into the financial district of manhattan. James, you used to take a similar train, i believe. Thats right. And hoping right now my neighbors are okay. These are coming from bergin county. Im in union county but, obviously, a lot of people that we would know in the Financial Community take those trains every day into the city. And i think whats really chilling when we look at those pictures and we hear that it jumped over the barrier and hit a store, i can only guess that means it went airborne across about a 30 or 40foot wide area of concrete where lots of commuters are walking every day. So if it really i ends up being only one fatality, thats quite amazing, and that may have something to do with timing. I dont know if people who were walking in the area could hear it coming, maybe they saw it, were able to run out of the way or maybe just fortunate that another train hadnt just unloaded people who would have been walking through that area then. But it would suggest a really horrible situation. Maybe you could speak to this. Its unusual it was traveling with that amount of force to enable it to hit the barrier and jump onto the platform because normally the trains calling into the station its whats called a pusher train, and thats why the front calls may have derailed. Hoboken sits just 7 miles west of new york city and is an extremely important transportation hub for wall street. Stuart which means what happens to the commute for tens of thousands of people tomorrow morning . This is a pure guess, but i cant see that train station being back up and running in normal condition, operating condition by tomorrow morning. No. Stuart there is a commute problem into americas huge city, new york city, the center of americas financial world. Theres going to be a huge problem getting in to work and probably getting out from work this afternoon. Yes. Stuart now, may i draw your attention, please, to the bottom righthand corner of your screen. That is where amazons stock is quoted. Were keeping that we call it a bug. Were keeping it right up there. 834 per share was the alltime high. Its still up nearly 4 at 832. Were putting that on the screen because the performance of amazons stock has been absolutely extraordinary. Believe me, it has doubled in less than 16 months. That is an extraordinary development. A company of the size of amazon, liz, i think its the fourth or fifth largest yes. Its pushing on 400 billion. Its bigger than berkshire in market cap. Bigger than Berkshire Hathaway and exxonmobil right now. Stuart were keeping our eyes on it simply because its a remarkable company. The ntsb is sending a go team to the crash site as expected, thats perfectly normal under the circumstances of this crash in hoboken, new jersey. Look, there is absolutely no financial significance to whats going on in hoboken at this point. None whatsoever. Be we bring it to use because it is a serious and developing accident situation in new york city and in new jersey. The market itself doing absolutely nothing. Were down 12 points on the Dow Jones Industrial average. Its amazon, that is the stock that were watching. Lefthand side of your screen, the ongoing grilling of john stumpf. I have to say that thus far in the proceedings its been nothing like as fiery as what we saw previously when the senate was having a go at john stumpf. That was a very big deal. We have heard john stumpf one republican said they were severely disappointed with him and oh, i want to go to him now. This is brad sherman, democrat, southern california. Going right after wells fargo, lets listen. To ask what new account opening quotas they had for their bank tellers, how many people they fired for not meeting their quotas or how many people they fired more opening phony accounts. We have wells fargo before me, but i dont think, mr. Stumpf, that you should be alone in this joyous experience. Your colleagues should at least come forward with some assurance. We are now engaged in an Important National ritual where the ceo comes before the representatives of the American People to apologize, to the take full responsibility to take full responsibility, to do so humbly. Mr. Stumpf, welcome to washington. What plane did you fly on, what airline . Virgin american. And when you came to the senate . I think it was united, but it was one of the two. Okay. It shows wall streets learned something. Thank you. Thank you. Now, youve got these forced arbitration clauses in your agreement with your customers. Youve said, oh, they can have mediation too. Some of them want their day in court. Are you going to hold them to these forced arbitration clauses and screw them again out of their day in out court, or are you willing to waive those clauses and say if youre caught up in this, you get your choice whether you have arbitration or not . Thank you, mr. Congressman. I believe in arbitration, i think its a fair way to but your customers may want something else. Are you going to deprive them of that . No, were not. Were going to have them were going to pay for a mediator what they want their day in court, are you going to screw them out of that . This is not were taking this very seriously. I told our you let them go to court if they want to go to court were going to yes or no . No, but with an explanation no, but. Okay, thank you. Thats a no. This sham was not an attempt to steal a few Million Dollars in fees from your customers, although thats important. Because you could say that few Million Dollars wasnt material. What was material is the price of your stock. You opened two million phony accounts and then went and told and it had to be material, because you were bragging about it to the people investing in your stock that you had higher penetration rates, more accounts per customer, that the number of banking customers that had credit cards had grown from the mid 20 up to 42 . So it had to be material you were talking about it. The peak firings, according to your own documents, was in 2013. So you knew you had a problem then correct. Why didnt you tell shareholders our penetration rates are phony, our new accounts are phony accounts, and when we tell you were deepening our relationship with our customers, were doing so by putting them through the wringer . What internal audit system did you have that you that you didnt have a material problem . Congressman, i have to to push back here. The, this is the behavior of people that we found that we did not want, and the majority of everything we do is right by our customers. Mr. Stumpf, you were brag you were firing, according to your own documents, the highest number of people in 2013 but bragging about your penetration rates, the number of accounts opening in 2014. So you knew it was material to shareholders, and you knew it was a phony number that youd fired people from, for falsifying. Congressman, may i just have a second . Because weve gone back and looked the two million accounts could not be rule ared out. We dont know if those are good accounts or not good accounts because weve already looked at 20,000 credit cards reclaiming my time, sir. You fired 5,300 people, you took 5,300 good americans and turned them into felons with a system a you created, benefited from and drove your stock price up by brag about your levels of new accounts. Congressman, i have to disagree with that. Im not surprised. The we have institutions that are too big to fail. In 2008 we pound that they were too we found that they were too big not to bail. Eric holder has told us they are too big to jail saying that he fears for putting them for bringing a criminal indictment. We now learn that theyre too big to manage, too big to regulate, its time to break them up. Time of the gentleman has expired. The chair now recognizes the gentleman from missouri, mr. Luetkemeyer, chairman of our housing and insurance subcommittee stuart split screen that our view arers are watching. Lefthand side of the screen, obviously, that is the hearing on capitol hill where john stumpf, the ceo of wells fargo, has been facing some very hostile questioning from politicians. Not that many fireworks thus far. The Senate Committee hearings was much more rowdy, shall we say, last time around. That that hearing continues. Righthand side of your screen, the train accident in hoboken, new jersey. One confirmed dead, multiple critical injuries, up to 100 people ininjured. Injured. The Structural Integrity of the hoboken train station in some doubt. The commute from new jersey into new york city, again, in some doubt later on today and, certainly, for the rest of this week. An ongoing situation there. Back to wells fargo, and joining us now is john chang, he is the state treasurer of the state of california. Mr. Chang, welcome to the program. As i understand it, you have banned the state of california from doing business wells fargo for at least the next 12 months, is that accurate, sir . Good morning, stuart. Its a pleasure to be with you. I have suspended three lines of business, the most highly profitable business lines for wells fargo in their engagement with the state of california, so thats correct. Stuart that is a form of punishment of wells fargo, is it not . Yeah. We want to incentivize much stronger, better behavior by wells fargo. They breached a very important trust with the customers of california and elsewhere. People put their hardearned dollars in trust with hem. They want to grow, they want longterm strategy for Financial Security and, unfortunately, what we witnessed was otherwise. Stuart are you setting conditions on wells fargo before they can get back to doing business the state of california, and if so, what are those conditions . Yes. We want to make sure that they comply with all the appropriate penalties and enforcement regulations provided by various agencies. We want to make sure they improve their practices. Clearly, something went wrong with their dedication to their mission. You had a culture that ran amok and what happened to the values of protecting and enhancing the Financial Security of their customers. So we want to make sure that progress is made on that front. Stuart do you want wells fargo and other banks to stop crossselling . Let me explain to our viewers how i think about this. If i open an account with a bank, the bank then tries to sell me other facilities, other Services Like a credit card or a mortgage or an ira, for example. Thats what gave rise to this abuse of selling, if you like. Do you want to see that practice be stopped entirely . They have to have a better culture as to theres a difference between sharing information and applying pressure, frankly, misrepresenting and creating accounts that arent, are not needed. But i do want to make sure that in todays day and age especially with technology but just as importantly personal Customer Services that they get the information so that they can make a better informed judgment as to what they need in their own individual or business case. Stuart okay. What can you spell it out for us . What would you like to see wells fargo do . First of all, the admission and then, secondly, what theyre going to do to change their culture to make sure they have best practices. And at the heart of this, they have to reestablish trust. We know that it takes a long period of time to establish trust, and so thats by engagement, thats by practice, thats by spoken word, thats by being an example of great behavior, good service, community participation. And they broke it. And they broke it bigtime. People are incredibly disappointed. They were impacted severely, and so theyre going to have to immediately address all those issues, admit to the problems they concerned and come up with a course of corrective action. Stuart well, just moments ago, mr. Chapping, john stumpf mr. Chang, john stumpf said that all selling goals, in other words, attempting to increase sales by putting goals to the sales people, all sales goals halted at the end of this week. So they really are making a big change there. Theyve also said that all fees have been and will be refunded to anybody who had an account opened without them knowing about it, all fees refunded, and all customers will be contacted. Sounds like theyre going part of the way to do what you want them to do, would you agree with that . Yeah. Those are, those are three good initial steps. We ought to think about what you did to the employees who were making 12 an hour on average and today are on the unemployment lines, you have to think about the compensation packages that were paid to the executives in the past despite this misrepresentation to the public and as a California Investor to us, how you establish trust. And, you know, we took you by your word. So they have, they have a way to go, but i appreciate those three initial steps, but were looking for far more. Mr. Chang, i have to ask a difficult question. There is some political grandstanding going on here. Banks are unpopular, politicians up for reelection are eager to pile on and beat up a bank like wells fargo. I believe that youre up for reelection. I know its a pejorative question, but are you to some degree politically grandstanding . So the answer is, no, i am not up more reelection. Stuart sorry, i didnt know that, sir. I want wells fargo stuart im sorry. Oh, no worries. I want wells fargo to do extraordinarily well, but we have to make a meaningful statement. We have to take important action to make sure that they progress and do the right thing. I dont benefit by wells fargo not doing well. We bank with them. We have a very serious relationship. So i want them to succeed in making sure that that i provide capital for the for Small Businesses in california, that they help finance affordable housing, but you cant do it on the backs by charging fees of individuals who have no sense and no Financial Security and no trust mihm. Stuart mr. Be chang, i do believe youre running for governor in 2018, is that correct . That is correct. Stuart got it. Thanks very much for being with us on a very important day. Im going to switch back to the hearing. Congressman meeks is asking questions of john stumpf, its getting fiery. Lets listen in. Because thats how you get your bonuses, is that not correct . Because x amount of dollars come in. But yet are you telling me you dont have the responsibility of losing your position when you have a culture of being fined and costing the bank year after year, month after month, theres no responsibility, you can just stay to be the chairman and the ceo . Is that what you want us to believe . Congressman, that is not the case. I serve at the pleasure of the board. Im willing and the whole board needs to go if theyre going to allow someone to be in charge when time after time you just talked about you fired 5,300 employees. When you found to out that they were doing something wrong, they were fired. Correct. Because they were doing something wrong. Well, something is going wrong at this bank, and you are the head of it. So shouldnt the board, from your own admission, if the buck stops with you as you came out here and said i apologize, the buck stops with me, and you have to also admit that criminal activity was going on in your bank, then you should be fired because it stopped with you. Well, again, congressman, the board has that power. Thats their and my energy right now is to lead this company forward. I also want to remind but you came here and you started out by saying i apologize, etc. If somebody walked into wells fargo tomorrow and robbed your bank or defrauded your bank and then after theyre caught they say, well, im sorry, im going to take full responsibility for robbing this bank and i am sorry that i robbed this bank. So, please, dont prosecute me because i am sorry now that i robbed this bank, would you allow the person just to walk out after robbing your bank because he is now sorry that he robbed the bank after he took the money already . Congressman, i see something very different between being honest and breaking our code of ethics and taking advantage of you didnt break code of ethics . I do you realize, would you admit this, that not only your bank have a black eye, that your bank, wells fargo, has given the entire Financial Service industry a black eye . Your responsibility. Yeah, im you heard mr. Sherman, he wants and i agree with him he wants everybody to come in here. Why . Theres only one reason why. Your bank, you, ceo, chairman, basically for me, was on top of whats basically been a criminal enterprise. Because when i look at consistency, time after time after time and time again you have to get fines. Now, it must mean that youre making a lot of money because its easier to pay fine because you know that nothing else is going to happen to you. So you pay the fine, you get away, you make a lot of money. Now, im upset. Im from new york. A lot of times i believe in financial institutions, thats why im so mad. I believe they make our country better until they rip us off. And they ripped us off tremendously. Taking advantage of customers and consumers when we had the financial crisis. Ive got individuals right now who are on the street, on the street. Theyre not back in their homes. They have these fraudulent mortgages. Nobody says, oh, im sorry that we gave you these fraudulent mortgage, were going to put you back in your home, and were going to make sure that everything is okay. No one has done that for them. You havent volunteered to do that. Will wells fargo put people back in their homes. Congressman, if i could just respond for a second, please. Theres no question we dont do everything right. We make mistakes, and were upping our who should pay for it . Whos accountable for it . Were going to make it right. Your vp made a 125,000 bonus package. Who is paying for it . Whos taking responsibility for it . Dont come tell me youre sorry. Were taking care of every one of our customers who is impacted. Time of the gentleman has expired. The chair now recognizes the gentleman from wisconsin, mr. Duffy, chairman of the oversight stuart okay. Let me explain again split screen, lefthand side some fireworks from congressman greg meeks of new york really going after john john stumpf with thes fargo bank. Righthand side of your screen, the aftermath of a train crash in hoboken, new jersey, where a commuter train plowed into a concourse area. One dead, 100 injured, many critically injured. We have some sound now from somebody on the scene, new Jersey Transit worker. Roll that tape, please. Yes, sir. I was about 30 feet away from the train when it pulled into the station, and i on observed them coming in at a high rate of spied. It went over the bumper block, basically through the air, traveled about another 40 feet, came to a rest. When it mitt the wall of the when it hit the wall of the waiting room. Stuart the train hit the terminal, launched into the air, spewed across the concourse area and hit a store. The gentleman there from new Jersey Transit confirmed thats what happened. On our news line is jim finen who was on the train, i believe, jim, you were in the first train car right at the moment of impact. Tell me, how did you get out of that train . Luckily, i was able to get out there true the doors. They got the doors owned pretty quickly. You know, the Jersey Transit workers respond toed pretty quickly to the accident. Stuart so take me through this. Youre in the front of the train, it didnt stop as it came into the station. You heard what, a huge bang, an explosion, youre thrown off your feet . What happened to the other people . Take me through it, jim. Correct. As were coming into the station, you felt that we were just coming in too fast. You could feel it. We were coming in at full tilt, at full speed. There was a, you know, there was a very loud boom when, i guess, we hit the barrier at the end where that typically stops the train. And at that point, you know, it was like you were bouncing up and down in your seat. I was, luckily, i was sitting. The people who were standing at that point were being tossed about the train car. And we were bouncing around for a good 30, 40 seconds until we, what i know now, we crashed into the wall. And thats really the only thing that stopped the train. At that point, i was sitting by the emergency exit, and myself and another gentleman, you know, popped the window out, he jumped out the window, we began helping the few of the passengers who were right there, i think two other people exited through that window. And at that point the Jersey Transit workers had the doors open, got the doors open so everyone was able to exit the train through the doors. Stuart well, jim, whats interesting here is that normally, of course, as you well know, these trains slow down as theyre approaching the terminal. As youve described it, this train did not. Were you, were you ware of this . Aware of this . You figured out you were being bumped around before impact, right . You know, it was just coming in fast. I mean, typically what happens is the train will i take this train every day and typically whatll happen is theres usually some traffic, so the train will stop, you know, 100 yards before it even gets to the platforms, waits for traffic to pass through and then it comes in relatively slowly. And that didnt happen this morning. It just kind of came straight in and never slowed. Stuart from what you saw, jim, the damage to the train, the platform, the concourse and the roof of the station, can you imagine commuting into hoboken train station tomorrow morning . Can you is it likely . No. I mean, i would imagine its going to be weeks if not months before, before this is rea paired. I mean repaired. I mean, the damage is pretty extensive. And plus where it hit, it was it kind of hit right by the staircase that leads down into the path station which is another commuter train. So, and the structural damage looked pretty significant where the roof collapsed and it hit a building. Stuart do you consider yourself lucky to be alive this morning, jim . I do. Definitely. Especially sitting in the first car. I mean, its stuart i bet you sit in the first car every day because you want to be first out of the train to get onto the path to get to work in nile, is that right in new york, is that right . Its true, and its also the quiet car, no cell phone use, no talking. So its the more pearsful ride usually peaceful ride usually. Well, it wasnt quiet this morning. Jim finan, excellent description, valuable to us all, and we appreciate you being with us, sir. Youre welcome. Stuart lefthand side of your screen, sean duffy, republican of wisconsin, going after time of the gentleman has education pyred. The chair now recognizes the gentleman from massachusetts, mr. Capuano. Thanks mr. Chairman, thanks mr. Stumpf. I want to thank you particularly for doing something here today that no other person has been able to do in the last four years. You have brought true bipartisanship to congress. [laughter] were all together on this. We are not happy. Last couple oh, they already started, but the last few minutes theyve been running a graphic in the back, and my colleague went through some of them. I think its important to know what some of the other things you have done, what they were. They werent just fines. You screwed student loan holders, credit unions, fannie mae, fredly are mac freddie mac, africanamericans, hispanic s and on and on. I understand this isnt material. Just five months ago you paid 1. 2 billion in a fine. This is only 15 of that. Who cares. Were pretend to be fire, were get through this. You know what i heard that before . The guys who ran enron. The guys who ran arthur anderson. We cant criminally prosecute you. Hell, youre your own boss. You are the ceo and the chairman. Hold yourself to accountability. Oh, my god, youve been bad. Oh, no, you havent. Thats ridiculous. Your problem is coming. You think todays tough . Its coming. When the prosecutors get ahold of you, youre going to have a lot of fun. So i want to thank you for that. I want to ask you, youve got the graphic up here. Do you know this guy . See, im not a real good researcher. Im not a prosecutor. This is simple internet research, thats all im capable of doing. Google it, wells fargo. Boom, whole bunch of stuff shows up. This is mr. Robert holmes who apparently robbed your bank in lancaster, pennsylvania. He did not use a weapon. He got caught. They got all the money back. Hes in jail as we speak on a 750,000 bail. You, on the other hand, have run an enterprise that has a culture of corruption, you encouraged subordinates to abuse existing customers by opening fake bank accounts, you charged those victims illegal fees, interest and late charges and then you send some of them to collection agencies because they didnt pay them. Then you fired 5,300 workers as if you care concern to cover everybodys tracks. In my opinion, you and your entire Leadership Team are clearly and unequivocally guilty of at least conspiracy to commit fraud, conspiracy to commit identity theft, clearly racketeering which is something a lot of my friends know something about, and probably a dozen other crimes. Only simple question. What the hecks the difference between you and mr. Holmes . Why shouldnt you be in jail . He doesnt use a gun. You got the money back. I understand that at his arraignment he said he was sorry. Whats the difference . Why shouldnt you be in jail right along with mr. Holmes . Congressman, i think that when you do something unearth unethical or dishonest which ive tried to exercise my duties as you havent done a real good job. Youve had 16 violations in five years. Thats a good job . This is only the seven largest fine youve had. Youve had since others that are a lot bigger. I forgot, youre the one judging yourself because youre also chairman of the board. I actually think im the greatest congressman in the history of the world. I should be speaker, president and maybe emperor of the world. Thats my judgment of myself. Sound good to you . Theres no question that weve done things that we need to improve on and weve paid fines, and were trying to get better in every one of our businesses. So mr. Holmes pays a little fine, you know, few bucks based on the amount of money he stole and the victims he had. You think he should be let out and have no criminal record . Again, being dishonest and breaking the law is something very oh, so its not breaking the law stealing my identity and opening an account that i didnt ask for . And our culture is about not doing that. We train for that not to i dont know [inaudible] 5,300 employees that you say time of the gentleman has expired. The chair now recognizes the gentleman from california, mr. Royce, chairman of the House Foreign Affairs chief. Thank you, mr. Chairman. Mr. Stumpf, the idea of a crossselling target of stuart okay. Well, there were some fireworks right there. Lets call it a fiery statement from democrat, massachusetts, thats mike capuano. He said youre going to have a lot of addressing mr. Stumpf, youre going to have a lot of fun when the prosecutors go after you. He said you are guilty of the conspiracy to commit fraud, to commit id theft and a whole bunch and racketeering which is, perhaps, the most important of all. We have with us katie pharynx a former prosecutor fang, who knows something about prosecuting. Shes been listening to whats ooh going on here. What do you make of this, katie . Go after the man for conspiracy to commit fraud, conspiracy to commit id theft if there is such a crime and conspiracy to racketeer. What say you . My vote is to make sure that that representative gets his seat back because, stuart, as you know, pigs get fat but hogs get slaughtered. Today is not the day of reckoning for wells fargo and john stumpf. There is at least three class action lawsuits that have been filed, two by former employees and one by those people who were not a part of the 5,300 that got terminated for the alleged bad conduct. Theyre employees who never met the forced quotas of ten accounts a day by the allegations. It is going to fell wells fargo. That is the civil litigation, stuart. The criminal prosecutions that can come from the doj, those also carry not only jail terms, but they also carry he hefty fis as we just heard that could be paid more than the 185 million thats already been paid. Stuart but is it likely, katie, is it even possible that john stumpf himself could be accused could be charged with conspiracy to commit fraud, conspiracy to commit id theft, conspiracy to be part of a Racketeering Organization . I mean, are such charges even possible against that man, that individual . Well, thats a great question and why. Because as we know, it calls runs downhill it always runs downhill. Theres been insinuation that these are rogue team members at wells fargo committed these crimes or fraudulent acts. But you know what we need, stuart . We need litigation. Discovery happens. The who, what, where, why and how comes out. And if we can show the liability, if we show the involvement and the participation goes as high up the food chain as possibly john stumpf, then the answer is, yes. So lets hope and keep our fingers crossed, stuart, that the doj actually does its job, because we havent seen that happening lately, and they really go after the people that ordered this to happen. This came from this is a directive that came from up high. This is not just some rogue group of employees that decided to do this one day. Stuart all right. Katie fang taking a hard edge there. Hold on a second, more from you in a moment. Lefthand side of the screening the hearing continues, righthand side, train crash at hoboken, new jersey, one dead, hundreds of multiple injuries. This is from the jersey city medical center, they are saying they have three critical patients right now, eight serious and more than 40 what they describe as walking wounded, those that are not in serious condition but do need help. Stuart thats what youre seeing right now on the righthand side of your screen. That is the, thats the information we just received from that News Conference thats going on on the righthand side of your screen there. Yeah. Stuart moments ago we had a witness to the accident, a man, jim finan, who was actually on the train. He was in the front car. Fortunately, the man was sitting down, so he was not injured. He managed to punch out a window and jump out and help other people get out, but he described the scene as where they knew the train was going too fast. They were bumped around, an enormous crash. They hit the terminal, it went sailing into the air, the front car, and plowed across the concourse as described by jim finan who was on we believe the engineer and conductor on this train are alive, so they will be a big help in the course of the investigation. Stuart lets not forget the engine was pushing this train, so it wasnt at front, it wasnt pulling it behind it, it was at the back pushing the train, pushing those cars right onto the concourse there. I can only imagine the mayhem when that train hit just before 9 00 this morning. All right . Adam shapiro is with us live on the scene. Adam shapiro, youre there. Tell us what youre seeing, tell us what happened as best you can, sir. Reporter the most important thing at in this moment, stuart, im going to step out of the shot so you can see the train station and the emergency responders, is what ashley was just confirming. Fox business got that confirmation from new Jersey Transit that the engineer and the conductor are arrive. Now, they were taken out of the train after the crash, obviously, but they are according to new Jersey Transit alive. The reason this is important is that there is only one confirmed death at this point. Local tv in new york has reported three people dead, but new Jersey Transit insists at this point only one dead and that the engineer and the conductor are alive. Of course, its going to be crucial for investigators to speak to those people to find out what they can about the leadup to the crash. The only other thing as i come back into the shot, stuart, is that the National Transportation safety board has dispatched what they call a go team. Whenever there is an accident of this magnitude whether its a train, sometimes involving trucks or buses or an aircraft, they dispatch the go team to begin the investigation, and that go team is on its way here. Stuart . Stuart adam shapiro, before you go, i want to give viewers in other parts of the country a sense of just what happened there in hoboken. Over your shoulder, adam, our viewers are seeing the train sayings. It is a huge train station. It is a huge train station with, i believe, tens of thousands of people coming through it every day on their way to new york city. Reporter yes. Stuart adam, i know youre not in position to speculate how long itll take to get that train station back up and running, but confirm for our viewers that this interrupts the commute in a very big way for some time, correct . Reporter absolutely. To give people who may not be familiar with what happens in metro new york, this is one of the busiest train systems, the new Jersey Transit system along with the new york city mta which you all know as the subway, one of the busiest not only in the country, but in the world. This particular station, people commute from different parts of new jersey into this station, and then they will go downstairs to what we call the path train, and they go under the river, under the hudson river into manhattan. For thousands of people every day,s this is the way in and out of new york city. But that, of course, is closed. You have the pictures, stuart, and i think we can show those, of the train station because the train as it came in actually caused structural damage to the station. So what new Jersey Transit is doing at this point is offering people who rely on this form of transportation buses as well as ferries and, of course, the train passes will be good for that. But it is, and this is no lack or its hardly hyperbole to say for commuters from new jersey into man at man hat can and thats in the tens of thousands of people this will be a nightmare commute Going Forward for the next couple of days. Stuart adam shapiro right there telling us precisely what happened roughly 90 minutes ago in hoboken, new jersey. Well be feeling this for some time. Lefthand side of your screen, the hearing continues. John stumpf on the witness stand, again if i can put it like that. Hes the ceo of wells fargo. That bank created two million phony accounts, didnt tell the people that they were opening accounts in their name, charged them fees, put em through hell when they tried to get back their Credit Rating. Im sorry, say that again producer, what . Okay. I want to bring in judge andrew napolitano. The esteemed judge from new jersey. Nothing to do were not talking about hoboken right now, even though you know it very well. Saddened by it. Im sure i have friends that were on that train. Stuart im sure you do, i do as well. I thought for a moment, and i dont want to be too personal, but i thought for a moment that my daughter, because she travels through hoboken, gets on the path shes fine. Adams description of the centrality of this station to mass transit was right, spot on. Stuart okay. Now, moments ago at that hearing, lefthand side of your screen, we heard from from democrat, massachusetts mike capuano. Sounded like he was out of his mind. [laughter] stuart im glad you pointed out the pronunciation not exactly a british name. Stuart no, its not. [laughter] my name ends in a vowel sound, okay . [laughter] he looked at john stump. , and he said when the prosecutors go after you, youre going to have a lot of fun. You are guilty, he said, you are in line for a prosecution, for a conspiracy to commit fraud, to commit id theft and racketeering. Now, that was grandstanding, obviously. Well, hes actually not very far from the mark. Stuart but the man himself, john stumpf, will not be accused of all of that, will he . It would depend upon what the ed the evidence is. The bank would be accused of racketeering because racketeering is the development of a body of wealth by illicit means with two or more criminal acts. We have thousands and thousands of criminal acts here. If that is the case, the government can then get from the possessor of that body of wealth three times the value. So do the math. How much money did wells fargo make because of all these phony accounts . Triple it, thats the fines the government can get. Thats before you get to criminal sanctions. Stuart but what youre talking about is a prosecution under rico. Yes. Remember, theres civil rico, and im sure the plaintiffs lawyers are preparing it already, and theres criminal rico. Three times the amount of the increase in wealth that the bank enjoyed because of its illegal activity. Stuart well, look wait a second, wait a second. Then the regulators have enormous and the authorities have enormous leverage on wells fargo yes. Stuart because you charge them with rico and you get them through the court, theyre dead. You would know how much or our people would know how much wealth they experienced from this illegal activity. Stuart oh, now, thats very interesting because the stock price went up significantly. So now we would have stuart and that you could say okay. So now thats a jury issue of exactly how much increase in wealth they experienced. Can you tie the increase in stock value to the illicit activity, or is it just the fees that they got from that illicit activity. Stuart but if you could, that banks out of business. And what is it, the Second Largest Bank in the country. Stuart it is now. So, look, as a practical matter, there will be a grand, large settlement of a huge amount of money being distributed to each of the individuals who wants to opt in and who suffered. Will there be criminal prosecutions . It depends on what the facts show. But remember, theres a clause in the constitution, your favorite document, that prohibits bills of attainder. The parliament loved bills of attainder. Its where the legislature declares you to be a criminal. Can you imagine if everybody in the legislature felt like congressman Capuano Stuart but thats not necessary. Mr. Stumpf would be arrested tomorrow. Stuart thats not necessary. The lower courts could file the charge of rico correct. Which is why stumpf has little to fear from this grandstanding, and its just grandstanding. Stuart i noticed a couple of the questioners, in particular greg meeks, confused what wells fargo had done in this instance, the creation of phony accounts, with the mortgage mess of 2008. Theyre rolling it all into one. Since when do you expect members of congress to have their facts straight . Stuart but my point is theyre going right after the bankers yes, they are. Stuart deliberately, because they are a pretty target. This event is a political stunt intended to get us to talk about them and their constituents to say, hey, theyre talking for me out there. But its legally meaningless. Stuart okay. Thank you very much. Nice necktie, mr. Varney. Stuart stop it. I want to g lefthand side of your screen, that is the hearing going on against, about wells fargo, lefthand side of your screen. The questioning, frankly, has not been add harsh, there have not been as many fireworks as we saw, what was it, ten days ago when Elizabeth Warren decimated john stumpf and really called him out bigtime and had enormous impact. Youre seeing a great deal of political grandstanding yep. Stuart all of these house members are up for reelection in november. Of course. Stuart theyre all piling on any bank, this bank in particular because theyve been found out. Its a theater. Its political theater in the extreme yes. [laughter] and its now cutting into wells fargos business, because you had a candidate for governor, 2018, john chang, california treasurer, cutting back business wells fargo. Stuart thats correct. That hurts. Stuart at least 12 months. And connecticut may do the same thing. Stuart im not going to mention t. A. R. P. , judge, so i know you dont approve of that, so ill move on. [laughter] nothing funny about this, thats the righthand side of your screen, that is hoboken, new jersey. About, just about two hours ago now a train supposed to be pulling into is station around 8 38, it was a little late, it pulled in. In fact, it plowed in just before 9 00. Went straight over the barrier, plowed across the concrete concourse area, hit a store. 100 injured. We now have that, we have eight seriously injured, three critically injured, and i believe we have a witness to what happened on im sorry, repeat that, producer . Matt is with us, a witness to what happened. Matt, would you just take us through it from beginning to end . Go through it, tell us what happened, please. Sure. As i had pulled up to the station at kind of the opposite end of the terminal as i was getting off the train, i heard a woman yelling saying, you know, the street was blocked off, you couldnt get through, there was a train crash and something had happened. I wasnt sure what she was, you know, the validity of what she was saying or if it was legit. And then i turned the corner to go into the terminal, and i just saw it was cay yoict. You could see the train had crashed through the station totally and had ripped apart, you know, the infrastructure. The ceiling was caved in and pipes were leaking and wires were hanging, you know . Pillars had collapsed. Stuart let me interrupt you there for a second because what youre saying now about the structure of the building, that the pipes were wrecked and that some of the pillars supporting the roof had been damaged and that the roof had fallen in, thats very important because long term we want to know when that train station will be back in action to deliver the tens of thousands of people from new jersey to their jobs in new york city every day. The way youre describing it is significant damage to the station. Repeat it, please. Yes. I was just thinking the same thing. I mean, that line where it had crashed, it had taken out, you know, a couple pillars, taken out the ceiling, it took out pipes and wires and everything. And, you know, it blocked off a whole large section of the terminal where theres a ton of people every morning, and thats a pretty busy line that serves, you know, parts of north jersey, so i dont know stuart did you see the injured . I did see some people injured, yes. I saw some people getting medical attention as i was walking through, and then as i was walking through to go to work, there was a huge, you know, influx of medical personnel and First Responders from all over. Stuart whats your description of the scene as you first saw it . Utter chaos with significant damage . Chaos and damage, yes, and just a lot of people just stunned. I think everybody was really surprised because this is such a routine day, and this is a commute that everybody makes every day and thinks nothing of it. You dont expect this to happen, and then something just shocks you like this, and youre just thrown into, just, mayhem. Stuart do you think youd be able to take a train out of there tonight . As of right now, i think they have shut down the station and, you know, im not sure if anything will be up and running tonight. Obviously, some of the lines are still, you know, undamaged, but just with the whole scene and with everything, i imagine itll be shut down for the rest of the day. Stuart okay. Matt, thank you very much for joining us. We really appreciate your input today. We really want to find out exactly what happened. No problem. Have we heard about the conductor and the engineer . Because the ntsb requires immediate, immediate blood and drug tests. So if theyre incapacitated, its a draw of their blood. Theyre not even asked for them. Yes. Saying that the engineer is in hospital being treated but also being questioned. Stuart i believe the expression was the engineer and the conductor. Yeah. Theyre both alive stuart both are alive, both being questioned. As you said, there is an immediate test for whats in their blood. Precisely. Stuart okay. Now earlier, we had an eyewitness, a man who was on the train. He was literally in the front car as it came into the station, and he said, look, theres no question about it, this thing was going much taos. Very conscious too fast. Very conscious that it had not slowed down. Which brings up an interesting point. None of the transit trains have this positive train control which became a big issue outside of philadelphia because it was going too fast on a curve. Congress had said all trains in this country should have this system that overrides the engineers settings on a train if its going too fast. This train does not have it. Congress said all trains should have it by the end of 2015. A lot of rail lines said were going to have to shut down entirely. We cant do it. We dont have the training in place, the money to put it in place. That deadlines been extended to 2018, and as a result, many trains in this country dont have positive train control which overrides an engineer if the train is going too fast. Stuart got it. Thats whats happening, righthand side of your screen. Please return to the amazon bug, can we . For much of the show today, we had amazon up in brand new record territory. It then subsequently, it came down a little bit. Right now its still its about flat. Almost at 830 per share. Weve been simply amazed at the performance of amazon recently. It has doubled in 15 months. You rarely see that. Went to, i think, 834 yes, about 10 billion away from being a 400 billion market cap company. Jeff bezos is pushing on 70 billion in net worth. Stuart i want to repeat that. Jeff bezos, owner founder not owner is now worth almost 70, 70, billion. And it was 20 years ago it went public as a bookseller. Stuart do you have any idea what the ipo price was . I have it in my head, but i want to be sure. Itll make you cry, im sure. [laughter] stuart i wasnt going to buy no stock it was 18 a share. Oh, my god. Stuart twenty years ago today, sergeant pepper taught the band to play. That stock, become righthand corner of your screen, was 18 i want to get in my time machine. Youre bitter, arent you . Stuart yes, i am. [laughter] lets go back to john stump on i hate cliches, but he really is in the hot seat here. Each account, were going to take care of it. I dont care where there was and, you know, the biggest thing here is secondary harm. I think it was asked by another congressman or woman about that issue. We take this very seriously. My time is scratching down. Heres the fundamental question i want to ask you do you think what you did was criminal . You know, im not a criminal attorney no, but do you think, do you think that . I led the company with courage and with if another Bank President had done this or chief executive officer, would not you say its criminal . I didnt break our code of ethics, and i didnt do any thank you, mr. Chairman. Time of the gentleman has expired. The chair now recognizes the gentleman from new mexico, mr. Pearce. Thank you, mr. Chairman. Thank you, sir, appreciate you being here. I suspect its not all fun. The so you talked about the 5,300 that were terminated. How big a percent of the people in the company that were terminated out of 268,000 people, youd get more than 5,300 terminated, so what percent of the terminations did that actually represent . You know, i dont have that. I can work with our team and see ah, dont worry about it. Thats okay. I dont have that. So just looking at this from the 30,000foot viewpoint and keep in mind im like mr. Lucas, live on a small fiveacre farm, dad was a sharecropper before he went to work as a roustabout. We had a Blue Collar Company just working there in the islefields oilfields of southeast new jersey so the numbers that get thrown around here are pretty big, but i cant fathom that youve got 5,300 people terminated, and that doesnt come to your attention as a ceo . You get calls on the ethics line saying, hey, were doing unethical stuff, 2008 according to one of the other people according to your comments people inside your company are breaking the law, theyre creating criminal acts, and that doesnt come to your attention . You get 10. 8 billion in settlements, and that doesnt come to your attention. So what i mean, if im sitting here thinking about this stuff just coming in in a clear, just quiet room, seeing these things at some point somebodys going to say, houston, weve got a problem. But it doesnt appear that anybody ever said, houston, weve got a problem. L. A. s City Attorney brings charges, and nobody on the board says, houston, weve got a problem. What, in your assessment looking back, what was it that would cause all those things to go under the radar and not be recognized, not be seen . Thank you for that question. As we learned more about this issue, we made investments. We made investments in training, we reduced sales goals, we brought in a regulator no, i understand. Youve been through that. Okay. What kept you from seeing, what kept this from rising to the im sure that today that you probably consider the problem somewhat different than you did in 2011, 12, 13, 14, 15. Why did not you see the importance that you would attribute to it today at any stage of the process . Congressman, its a good question. Ive said in my testimony, identify said i read your testimony. I did not see the answer. What . So since you appear not to want to see it, im sitting here and a balanced scale as a Business Manager is always there. Do we want to take that job cleaning out that well, then we cant clean it out and we get a Bad Reputation . Thats worth maybe we will. Or maybe we wont. Are we going to overlook the numbers of terminations . Were getting the calls, dont we really want to investigate . The stock price is doing okay. My compensation is okay. You get the balance is there. Your compensation in that period of time is approximately 200 million. That would cause one to say i think things are running okay, yeah, maybe we got that little problem over there. But another thing on the side of the scale that says i dont want to look at this or i cant see 10 billion in settlements that it just doesnt come to my attention. 5,300 terminations doesnt come to my attention because my we got 260,000 employees. Obviously, were doing things 99 right. Forget the two Million People that we defrauded. Mostly were doing okay. And so i see size and complexity being a great problem when you cant see 5,300 people being term mayed terminated, when you cant see 10 billion in settlements, then youve got a problem with complexity. And there is no Community Banker in this country that would not have seen people doing illegal acts. So maybe it was your stock compensation, maybe it was the size and complexity. But, sir, i think today listening to things that everyone has said you have proved that you did not offer leadership in this, you have kind of shirked around and said the board can do anything it wants at any time. I, sir, think you ought to submit a resignation, and your board cannot hold off action on that. Thank you. Yield back. Mr. Chairman, may i just make a comment about that . Witness may comment. We did take accountability, we did invest in things to help reduce this, and we saw the numbers coming down problems continued, sir. The problems continued right on through your actions. 2011 you did this, 2013 you did that, and the problems continued time, the time of the gentleman has expired. Chair now recognizes the gentleman from texas, mr. Green, Ranking Member of the oversight and investigations subcommittee. Thank you, mr. Chairman. I thank the Ranking Member as well. Im grateful that you have given us a very positive response, and we are holding this hearing. Mr. Chairman, with 5. 6 billion in earnings in the second quarter, wells fargo is not in this because of need. This is about greed. Its about the same kind of greed that created credit default swaps, that created negative amortizationing, that kidded nodoc loans, prepayment penalties that coincided with teaser rates, the same kind of greed called Exotic Products that created the housing bubble. This greed has caused this crossselling to become the equivalent of an exotic product. A product that has now created a crossselling bubble for wells fargo. The crossselling bubble exists because you were marketing yourself as a company in a growth mode by virtue of the new products you were having with your customers. You had customers that were coming in, and you were growing. This enticed investors, it enticed consumers to buy your stocks. When your stocks were bought, it benefited you and toplevel executives to the detriment of lowerlevel entry employees. They get fired, toplevel executives get golden parachutes, and its business as usual. Well, mr. Chairman, this will not end by simply having some lowerlevel employees go to jail. If toplevel executives go free and lowerlevel employees go to jail, it doesnt end it because there is no reason for this to cease and for toplevel employees to be more mindful of whats going on. So weve reached a point now where the public expects to see more than lowerlevel people punished. 5300. 5300 working people who, by what i seem to read were encouraged to the point of having themselves coerced to engage in this activity, these were people who were trying to make a living, not trying to make a big bonus and a big payday. These people deserve a fair day, not just an exit from your company. And what do i mean by a fair day. I think they deserve an opportunity to be heard in terms of what happened at wells fargo to cause them to do what theyve done. I think that they ought to be given an opportunity to come before congress, they ought to be given the opportunity to explain. And i would also add this we have to find out how pervasive this bubble is, we have to. We have to bring before the overnight committee toplevel executives oversight committee, toplevel executives, and i think we have to start with you. So tell me please, sir, how common place is this crossselling in the Banking Industry . Thank you, congressman. For our company crosssell is a good thing because it represents the depths of if you would, im going to have to i to intercede, because im asking about the industry now. I have no idea. You have no idea how pervasive the product is . I dont know what other companies use. Are you saying you have no belief or no idea that other companies are crossselling . I do not have that. I must tell you, i cannot believe your answer. Youre telling me that you have no idea as to whether or not they even engage in crossselling . I dont know their Performance Measures but you do know that they engage in it. I every bank, every retailer out there has some motivation, some way to make sure they recognize their people. Do they engage in crossselling . Well, i dont know, i dont know their situations. Im honest with you. You, you dont talk to your colleagues . You dont talk to other bankers . You have no idea as to whether they engage in crossselling . I dont know what they use. Well, listen, i thank you for your answer let me finish because, mr. Chairman, this is the evidence that we need to bring the others in. We have to ask them what theyre doing given that this gentleman refuses to give us what i believe to be a correct answer. Time of the gentleman has expired. The chair now recognizes the gentleman from florida, mr. Posey. Thank you, mr. Chairman. Stuart okay. We just saw congressman al green who, basically, wans Bank Executives wants Bank Executives to go to prison and, in particular, john stumpf, to go to prison. What weve seen consistently this morning is the confusion of two issues. The first is what wells fargo did by opening two million phony accounts. The second issue is totally extraneous. Theyre trying to link him to the 2008 collapse of the mortgage market. Yeah. Stuart theyre trying to link the two, bring him into it, and theres no link whatsoever. None. Yeah. Stuart i really have to settle this about crossselling. Congressman green moments ago is infuriated by the idea of crossselling. I walk into a bank, open a savings account and they say, mr. Varney, would you like a credit card . That is crossselling. Is that the demon thats infected the Banking Industry . No. Stuart i dont sorry, im on camera now. I dont think so, ladies and gentlemen. [laughter] im sorry, i dont think so. Crosssell me, please. Id like a credit card with my savings account. Id love to get a mortgage if you give me a decent deal. Thats crossselling. Theres nothing wrong with that. Do these people really want to knock it out of the park . Thats a disgrace, thats awful . What sheer nonsense. How am i doing, judge . Fabulous. I cannot improve on that. Youre terrific when youre angry. [laughter] stuart you see says do it. Stuart misguided criticism of wells fargo and john stumpf. It is political theater because these people want to be reelected. And we have the democrat from massachusetts, congressman capuano, who said so what about the Clinton Foundation . Thats what friends do, they network. [laughter] stuart hes the one that wants to get john john stumpf chargedh prosecutors. Racketeering. Stuart monica controlly has Monica Crowley has sat here for an hour, weve got 15 seconds left. [laughter] the core pillar of the Democratic Party is beating up wall street because theyre now a socialist party. Stuart two seconds, one second, 12 noon. Heres neil. Neil thank you very much. Whats going on in washington, imagine the reaction were already getting to this train crash today in hoboken, new jersey. Already without even knowing the details and without even knowing what exactly caused this, nancy pelosi, the House Minority leader, urging congress to quit delaying something called the positive train control act; that is, the means by which a trains speed can be adjusted automatically if something is happening to the conductor or the conductor is riding the thing like a banshee. So we dont even know what happened there, but nancy pelosi saying it no doubt has to go
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