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Wells Fargo CEO Struggles To Defend Allegations Of Dumping Stock

On Thursday, Wells Fargo CEO John Stumpf testified before the House Financial Services Committee about the creation of over two million unauthorized accounts by Wells Fargo employees.

During the hearing, Rep. Carolyn Maloney (D-NY) asked Stumpf about a substantial amount of Wells Fargo stock he sold before Wells Fargo’s transgressions were publicly known.

“I have right here your form four filing, which I’d like to submit to the record, that shows that on October 30, 2013 you sold 13 million dollars 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,” Maloney pointed out to Stumpf.

Maloney followed up by asking Stumpf if he dumped “13 million dollars of Wells Fargo stock, which you did through your family trust, right after you found out that your bank had been fraudulently opening hundreds and thousands of scam accounts ripping off your customers?”

“The vast majority of our people who go to work every day and try to do the right thing,” Stumpf started to say in an attempt to dodge the question.

Maloney angrily interjected, “Excuse me, that was not my question. Excuse me, my question was did you dump the stock after you found out about the fraudulent accounts?”

“I didn’t. I did not sell shares at the time because anything related to sales,” Stumpf told Maloney.

Maloney concluded, “Well, it seems very, very suspicious that your largest sale was right after your $1.8 trillion-dollar bank was turned into a school for scoundrels.”