>> tim sloan, himself, was given clear pass.he main reason being that throughout most of the period when the sales scandal developed, he was cfo and head of the wholesale bank, and therefore, did not have direct responsibility for these sales misgivings, even if he was aware of them, he was then president and coo in november 2015. at that point, she started to report to him, and instead of john stumpf. he takes credit to end her tenure, something the board failed to do before that. in terms of other senior executives as we know, she and stumpf very much in the spotlight, tolstedt found to be improperly acting and terminated for cause, and stumpf did not go that far. the board, as a whole, getting a pass as well. >> curious, i'm curious, the chairman of wells fargo told you they could have claw back more, but chose what they did. what they were clawing back is 24% of the compensation during that five year period when they had these aggressive sales campaigns going on there was that a formula what it remitted or how did they get t

is that why tim sloan comes across in this report as facing significantly less criticism? >> tim had very little direct contact with the sales practice issue at all because he was in the wholesale bank, totally different part of wells fargo. and before that, was cfo. so his only direct contact with the community bank was during the brief period when he was chief operating officer and carrie reported to him and he quickly decided that he needed to make a change at leadership. >> as you mentioned, it wasn't his direct responsibility to act based upon the cross selling issues, but it was very clear that he was aware of it and that he had heard complaints long before he acted on that. could he have been more proactive, could he have acted in a more forward looking way and elevated things to the board himself and are those not the traits you would like to see in your current ceo? >> we have total kfrd confidenc tim sloan. and i think that is born out by the actions that he has taken since he became ceo, to reorganize the structure of the risk organization and hr organization is

i would like to see a complete turnover, and i would like to see tim sloan gone.nie: all right, much appreciated. more "bloomberg markets" next. this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." time for our latest business flash. a look at the latest business stories in the news. trying to revise the struggling swedish wireless network maker is promising to step up efforts to cut costs and get rid of unprofitable contracts. he spoke today with bloomberg tv. >> we are stable. we are actually very competitive with our new radio platform that was introduced a year ago. 30%ave said that we target penetration -- 50% penetration this year. we are on track. 18%ie: the stock has gained since ericsson announced he would take over. new home sales in the u.s. unexpectedly rose 5.8% in march to a month high -- 8 month high. latest bloomberg is this flash. -- business flash. you see the global macro movers, the biggest is the s&p 500. russia is much higher, having sold off quite a bit in recent days along with the ruble. the same occurring with russian bonds. strong

stephen sanger saying the board has complete confidence in the ceo tim sloan.e's deeply sorry that wells fargo abused investor trust or it the board vote is set to be ongoing. some results are narrow according to headlines. sloan, ceo of wells fargo's saying they are facing these problems head on. ♪ vonnie: from new york, i'm vonnie quinn. mark: i mark barton. this is bloomberg markets. time for futures. under $50 aading barrel. russia says it will wait until the meeting to decide whether to extend and put cuts. -- bob,us to discuss thanks for joining us. generic crude futures down for the seventh consecutive day. we are below $50. can we crack 50 again or is the path downward? question. i a good think the path is downward sort of in general. when you look at the two saudims that opec -- arabia has embarked on, one was to eliminate a big chunk of u.s. shale production and the other was to cut production with opec and non-opec members. squeezing of the show producers worked a lot better than the opec cut did. when you look at what happened with prices they essen

and i think tim sloan -- and i think the report backs it up. least an opportunity to run the company going forward. there is certainly no smoking gun in the report regarding tim. so i think this is really -- looking for the board to have some introspection here. and the board needs to go out and engage with investors to determine what the confidence is amongst their shareholders and act accordingly to reconstitute the board. >> do they all come up for re-election this year? >> yes, they do. >> pat, thank you. >> thank you. >> pat mcgurn of iss. make sure to catch wells fargo cnn tim sloan on "closing bell" today at 4:00 p.m. >>> tesla is now worth more as a company than either general motors or ford. will tesla continue to zoom past its rivals in terms of value? "trading nation" is next. and baseball history comes alive on "power lunch." uniforms worn in games by some of the greatest of the greats during the biggest moments in baseball history. how much are these uniforms worth? these are the real thing. and they're made out of wool. not that br

ceo tim sloan addressed how the scandal has impacted the company. >> of course it's having an impact on the performance of the company. i mean, i think that when you step back and you look at how serious the retail sales practices issues were, and the reputational impact on the company, you can only reach that conclusion. >> loan growth was a little soft. wells fargo did not have much investment banking exposure to offset it. both citi and jpmorgan saw strong bond issuance balance it out as well as strong credit numbers. following march's rate hike, all banks were expected to see net interest income improve, although jpmorgan and regional learned pnc were the only ones to meaningfully deliver. for "nightly business report," i'm wilford frost. >>> a new study out today by s&p dow jones indices, shedding new light on an issue we frequently talk about here on "nightly business report," which investment strategy is more effective -- active or passive management? before today, s&p never released data over a 15-year period on the two strategies. as dominic chu reports, it may make you reco

tim sloan is given a pass. the report said that his direct involvement with the sales practices issue was limited, until he became president and coo in november 2015. despite that, i asked him if there could have been more he could have done earlier. >> in hindsight, i wish we would have moved more quickly, we would have made decisions, for example, that we made last fall, was to end the incentive compensation plan in the community bank. >> away from the individual, the report said a sales oriented culture and decentralized corporate structure caused the issues. here are some examples. monthly motivator reports where it was said that some employees lived and died by the results. and retail score cards which were instituted by tolstead and, quote, generated significant sales pressure. how did that bad behavior manifest itself? the report details one instance where a district manager warned an employee during onboarding that wells fargo provided a challenging and intense sales environment, and that he should be p

tim sloan it says he does not hope so. he hopes they do not do that.t this point a mandate. and they have all the support behind tim sloan, he seems to be doing a very good job. yvonne: what can the chairman and board do at this point? if they are not getting rid of board members, what can they do to ensure shareholders they can put the fake account scandal behind him? tony: for one, when you look at the report they had last week, ames looked stable and still positive. we think things have stabilized for the company. we do not have to wait too long. on may 11 they will do an investor day presentation. they was a time to clear deck, here everyone on a wide array of things that were done wrong and take them seriously. but on may 11 we look forward to them setting the bar, in terms of what things will look like in the upcoming months. get to a point of taking market share again, post the financial debacle. until the recent scandals. somee: as betty mentioned, members got less than 60% of the yes a vote. the chairman thinks maybe this is a bigger issue. ho

. >> on monday we will be live from the conference with wells fargo tim sloan.teven mnuchin david solomon of goldman sachs and nasdaq starting on monday at 10:00 eastern time. 3:00 p.m. in london. you can catch all of our interviews on bloomberg. we will be back on monday. the trump economy. this is bloomberg. ♪ scarlet: i am scarlet fu. abigail: and i am abigail little. ♪lcome to bloomberg markets." scarlet: we are live over the next hour, covering stories at a san francisco, washington, and cairo. here are the top stories around the world and on the bloomberg. as president trump gets ready to mark's 100th day in office, it is said when it comes to the budget, the arithmetic is wrong. more of our exclusive interview later this hour. and republican efforts to roll back. france are running into some role brought that rollback dodd-frank are -- rollback dodd-frank are running into some roll block's -- roadblocks. stopped.ank ceo is a 20 -- and

we have the ceo tim sloan and also the chairman trying to defend wells fargo, saying they are not at the point of reelecting directors to the board so there is no need for people in the audience to give up that point. you will be able to follow along and watch the webcast. sloan saying the entire board is there with more work to do but they are on the right path. and our reporting says the entire board will probably survive a shareholder vote later today. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york i am vonnie quinn. mark: live from london i am mark barton counting you down to the european close working minutes away. let's get to emerging markets. earl are today -- earlier today we spoke to frank when templeton about where he is shifting his money. >> we have sold out of poland and hungary and ireland and really deployed those assets into other parts of the world. latin america, for example. mark: back with us, john rowe, head of multi-asset funds. we'll start with the chart. the white line is the emerging market currency index which has been headi

investors will want to know about that on the call on thursday with tim sloan.t to leave it there. sorry about my audio snafu there. laura keller covers banking for us. we will be right back. this is bloomberg. ♪ david: it is 1:00 in washington and 6:00 in washington. i am pimm fox. cirilli with an focus on politics. david gura is on assignment this week. : secretary of state rex tillerson is meeting with his counterparts in italy today. moscow this week has been complicated by the u.s. recent airstrikes in syria. we will have the latest from our reporter traveling with the secretary of state. plus as geopolitical tensions with north korea and russia escalate, the plot is heightening with the government as lawmakers return from a recess? there's plenty on the agenda that still needs to be a compass. trade was at the top of the agenda for president donald trump and china's president as they met last week in florida. while the two leaders concluded their meeting without any major breakthroughs, the trump administration is now considering an orga

regulatory filings retail tim sloan bought $2 million on monday.anger, about $3 million, at $51.65 a share. its event toolds next week. a u.s. judge has ordered the payment of 2.6 million in fines after admitting bribing officials to win business. will be paid to brazil, and 93 million to the u.s.. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> a mixed picture and asia, the nikkei 225 coming back online. sang, look at the hong dropping almost 1% with h-charset for a five-week low. other stocks such as malaysian stocks rising to the rise in tech stocks. take a look at the movers in the region. tpg a look at the laggards, telecom plunging 18%, now the lowest since august 2014. it resumes trading in sydney after raising another round of capital. other aussie telcos stocks on the decline. slumping, fortescue shares falling for a seventh day , technicals signaling the stocks may be oversold. santos moving the most as crude prices slack. favor.ocks finding officials halt sme

ceo tim sloan opened by telling shareholders they desrerve a lo more from wells fargo and they have af making it a better company. sources are telling me this morning that it's looking likely that all directors will receive more than 50% of the vote, and it's unlikely that we see any resignations since they're not obligated to do so, if they receive more than 50%. the three new board members which include ceo tim sloan received closer to 100% and remaining somewhere between 50% and 80%. those on the risk committee or served on the board longer had more trouble in terms of gett tg afirmive votes in. dissatisfaction with the board in general. many believe wells fargo did not act quick enough in the wake of the sales practices scandal and we spoke with several shareholders before the meeting including a nun from philadelphia with the sisters of st. francis, they hold about 15,000 shares, she's bringing a proposal for more transparency into what happened with the sales practices scandal, she said they voted against seven of the 15 director. >> we definitely looked carefully at the board m

meanwhile, current ceo tim sloan is given a pass.is direct involvement with the sales practice issue was limited until he came president and coo in november 2015 at which point carrie tolstedt began reporting directly to him instead of stumpf and sloan soon decided to end her tenure. the report is less critical of the board than executives suggesting that at times board members believed that they were misinformed by various presentations they received. that said there are some stern recommendations for the board. although this comes in stark contrast to report on friday from institutional shareholder services that recommended shareholders vote against the re-election of 12 of 15 wells board members at the upcoming annual general meeting, include chairman steve sanger who oversaw today's report. sanger will join me for an exclusive interview today at 11:00 a.m. eastern time. andrew? >> okay, wil. thank you for that. i think we are still marvelling here when you said tim sloan gets a pass. and i would love to hear more about that durin

at the beginning of the call, tim sloan said the efficiency ratio of 62.7% is not acceptable and shrewsberrying the firm is committed to improving that. , shrewsberry, say salary costs will be higher on pay raises. as we pointed out, as the call began, the stock did come back .rom its lows of the session earlier, it had fallen by as 3%h as 1.77% -- excuse me, at the low of the session thus far and now down by about 1%. vonnie: thank you for that. we will be back to you later on. and your anchoring later on? julie: i am. bloomberg for the business flash. some of the biggest business stories in the news right now. there is a sign inflation in the u.s. will accelerate only gradually, wholesale prices fell last month for the first time since last august. the index fell 1/10 of 1%, excluding food and energy. pti was unchanged from february. conoco phillips has made his second major asset sale in a month, agreeing to sell its interest in new mexico's basins as muchits of been for as $3 billion two weeks ago. konica decided to sell canadian for $13.3 billion. -- conoco decided to sell canadian oil

critical of former ceo john stumpf for failing to realize the miss ggivings of carrie tolstedt, i asked tim sloanow it was that he came to the decision to end her tenure. >> i worked with her on some things that i had asked her to improve on. and we just came to the conclusion within a few months that it made sense for her to move on. and what i saw was an executive that while having a successful career had some challenges in terms of working with others. had so the dealt as aggressively with some sales practices issues as she should have. >> though the board review gave sloan a relative pass relating to the saga, i asked if he could have done more sooner. >> when i look back, i should have and could have done some things differently once the issues made its way to the corporate leadership level. and in hindsight i wish we would have moved more quickly. we would have made decisions, for example, that we made last fall, which was to end the incentive compensation plan in the community bank. >> finally we asked whether this review now means the worst is over for wells fargo. >> the board was clear

tolstedt, current ceo tim sloan is given a pass. the report says 'tis direct involvement with the sales practice issue was limited until he became president and coo in november of 2015. despite that i asked him if there was more he could have done earlier. >> when i looked back, i should have and could have done things differently once the issues made its way to the corporate leadership level. in hindsight i wish we would have moved more quickly. we would have made decisions, for example, that we made last fall, which was to end the incentive compensation plan in the community bank. >> away from the individuals, the report says a sales oriented culture and decentralized corporate structure helped cause the issues. here are some examples. monthly motivator reports where it was reported that some employees lived and died by the results. retail score cards which were instituted by tolstedt and generated significant sales pressure. how did that bad behavior manifest itself? the report details one instance where a district manager warned

the ongoing winner, tim sloan. almost 100% vote to approve him going forward.hat's because he only got up to the board in 2016. this was a vote on his board position as opposed to his role as ceo. if you step back from the last two months, including the board rer vi review, he's come off well on this. >>> shares of capital one under pressure after the company posted weaker than expected earnings and revenues. the company reporting a 20% drop in net income as losses jumped for u.s. credit cards. shares down over 3%. >>> juniper networks beating the street. the company forecasting this quarter's profit a penny higher than analysts consensus. the stock higher by 3.3%. >>> looking at irobot topping expectations on the top and bottom line and now raising guidance. the consumer robot company reporting revenue growth of 32%. >>> edward life sciences posting better than expected results. >>> ugg brand owner deshgs o deckers outdoors exploring strategic alternatives. up 6%. costco will pay a special dividend of $7 a share, 3$3.1 billion payout, this on top of the regula

reuters tweeted this picture of ceo tim sloan outside the meeting in florida where he and the board were slammed by investors. they're angry over the fake accounts that employees opened in customers' names without their permission to meet sales goals. the bank has since agreed to a $185 million settlement, fired 5,000 employees, and refunded $3 million to customers. but this morning a boston shareholder bruce marks was tossed out. wells fargo says for removing the board member he says for demanding that they explain themselves. >> they were a deer in the headlights. they were petrified to answer questions. they surrounded me with six armed securiy guards and the police and they dragged me out. >> massachusetts senator elizabeth warren tweeted this message urging shareholders to vote out every member of the wells fargo board who was around during this scam. in the end, all board members were reelected, though the margin was slim for several. interpreted as a message of dissatisfaction. wells fargo's chairman steven sanger issued this response. let me assure you that the board has heard th

here is ceo tim sloan trying to bring order to the meeting. >> once again, you're disrespecting a boards. i think it's inappropriate. you're out of order. bruce -- >> i will not say a word. and -- board of directors stands up, introduces him or herself and says what i was doing and why i should be renominated. >> that ultimately caused the meeting to go into a recess and of course, reconvene shortly after that, but we continued to hear words like accountable pi, ethics, definitely a will the of finger pointing at the chairman and ceo sitting in front of them. we expect this meeting to wrap up shortly and we are hoping to get some of the answers in terms of f the votes and percentage by which each of the directors was either voted back on to the board or not so much. we'll find out, melissa. >> leslie, thank you very much. excuse me, stephanie, you're in this name. overweight wells fargo at this point. why would you want to own this stock when it doesn't appear that the clouds are lifted? >> that's the reason. i think there's opportunity to fix. and i bought it. i covered my understo wei

we will be live from the milken's global conference with tim sloan, steve mnuchin, and goldman sachsoo, and david freeman, ceo of the nasdaq. tech stocks, some are entering uncharted territory. buy side and sell side, they are all piling in. this is bloomberg. ♪ scarlet: what'd ya miss? technology is on a tear. facebook, amazon, and alphabet trading at record highs. they are incredibly influential, but at what point are their shares overvalued? here is a look at the emerging technology. the msci all country information-technology index. the blue line is earnings-per-share. that indicates valuations may be modest for the bulls looking at tech. joe: the tech stocks have done incredibly well. the estimates are also impressive. scarlet: the earnings we got seemed to justify it. joe: we have more coming next week. summing else coming up next week, depending -- something else coming up next week, depending if you consider sunday next week or the week after. the white line is the spread between 10 year yields on french and german debt. you can see after last sunday's vote there was a big co

analyst were asking tim sloan about this on the conference call with earnings.is because the community bank at wells fargo is such a big part of its profits. if it is a problem there, as we have seen the last quarter, then you have to wonder how the company will be doing going forward, whether that is growth putting on more revenue, or alternatively, making sure the company is more efficient and bringing the cost down. wells fargo is having trouble on both of those. scarlett, you may have interviewed john a few weeks back, and he was talking about, we have higher expenses, and those will remain elevated. scarlet: that is a good point. laura keller, our banks reporter joining us from florida following the wells fargo annual shareholder meeting. let's get some more headlines with mark crumpton. mark: house oversight committee jason chaffetz says former national security adviser michael flynn could be criminally prosecuted for failing to clear and report payments received from a russian organizations. >> personally, i see no data to support the notion that general

tim sloan:"i don't believe so. i think that senior leadership has taken accountability. said that, i think that one of the fundamental mistakes that we made was that we had an incentive compensation plan in place that created a culture that was uncomfortable for a lot of people.">( pam ) sloan says, wells fargo has hired back roughly a thousand former employees... who left because they were uncomfortable with the bank's culture. wells fargo was fined 185 -million dollars for opening 2- million accounts without customers' permission. (steve) new at 6. california's state treasurer is selling over one billion bucks in high-speed rail bonds. that's despite an ongoing legal challenge to the project. deputy treasurer tim schaefer says that the bonds will be issued tomorrow. even though the lawsuit isn't resolved. a sacramento county superior court judge postponed a hearing on opponents' latest attempt to derail the $64 billion bullet train untill next week. chief meteorologist brittney shipp joins us now... .a system will bring light precipitation across the northern portion o

this after ceo tim sloan and the chairman reported purchasing wells fargo common stock on the open market. they paid $51.65 a share. sanger and sloan report the purchases of 58,000 and 59,000 shares respectively. the financial select sector spyder. still insider buying, michelle, cause for bulls on wells fargo. the stock off about 15% since its record highs last month. >> climbing a little bit today. thanks so much, dom. all right. we've shown you that video over and over again, a man being dragged off a united plane. now united airlines changing its booking policy ahead of its earnings after the bell today. plus, rival delta piling on united. we'll tell you about it. plus, why the death of the hedge fund may be greatly exaggerated. that's straight ahead on "power lunch." lunch." so how old do you want to be when you retire? lunch." uhh, i was thinking around 70. alright, and before that? you mean after that? no, i'm talking before that. do you have things you want to do before you retire? oh yeah sure... ok, like what? but i thought we were supposed to be talking about investing for reti

i asked the ceo, tim sloan, if he expected any directors to resign anyway after today's results, he sayswe will be very responsive. not at the board level but the manager level to make sure it fits and everything was broken and bailed better wells fargo. >> share holders were very dissatisfied with the board handling of the sales practice scandal and they showed their anger, not just in their vote, but in pointing fingers at the executives of today's meeting, take a listen to what one shareholder said. >> all we'd like to know if why you didn't see snit and if you did see it, why didn'tp didn't you answer is it so why is it so must have much to ask. >> reporter: that anger is emblem attic of hair shoulders alike. guys. >> what a story. i guess we should have seen the texter. >>> oh, look at the time. that does it for requests closing bell." >> on borrowed time. >> we'll all see you tomorrow. >> a record day on wall street as the dow closed more than 200 points and crossed over 21,000 before ending slightly below that level, making it the best

well above argument 59%, and here's the ceo, tim sloan. >> you'll see an increase in our expenses so without that first quarter seasonality, we would have been operating outside the range that we talked about historically between 55 and 59%. as we said operating from that perspective is not acceptable. >> but it's a struggle to hit the 55%-59% target this year. corporate loan growth was soft for all of the banks, it was offset for jpmorgan and citi with stronger corporate bond issues and dtm as well as broader investment strength. here's citi's ceo, michael corbat. >> had a start last year, extraordinary march this year. if you look at the pipeline of banking, banking deals, i'd say all the pieces we expected with that momentum from last year came to fruition, and i'd say the second quarter, you know, continues to feel like it has positive momentum. >> trading was also strong, especially in that sector. credit cards benign, something they watched closely, the highest charge, down through more bid as opposed to work policy. wells fargo the lag in the market, but all red. kelly? >> yea

current ceo tim sloan has been given a relative pass. rect involvement with the sales practice issue was limited until he became president and ceo in november 2015. sloan has said in the last hour that we accept the board's finding as a critical part of our journey to rebuild trust. the report is less critical of the board than executives. suggesting that at times board members believed they were misinformed by various presentations they received. all this comes as stark contrasts from institutional shareholder services that recommended shareholders vote against re-election of 12 of 15 wells board members at the upcoming annual general meeting. including charge steve sanger who oversaw the report. sang her join -- sanger will join us in the next half an hour or so. sara? >> you mentioned sort of this idea that employees were put under pressure by management. were there examples in the report? >> there was one example of what was called a monthly motivator report and the report says that some lived and died by the results of that. also ret

and though warren buffett called it egregious, he praised the bank as new ceo tim sloane.out them supporting the current board of directors is it's been said they shouldn't. and we'll get weekly jobless claims. and economists are looking for an increase in claims and flat for ppi. >> jpmorgan beating estimates on the top and the bottom line. wilfred frost joins us. >> the revenue 25.6 versus 25.9. there was a small tax gain in that. i think that's largely offset by a legal charge to the foundation. 155 bps to 152. one question mark at the end which we'll come to in terms of possible negatives, the pure investment banking revenue, slightly 1.7 versus 1.6 but in the broader investment banking space, the trading revenue is the clear beat fixed revenue 1.2 balance. that's up 17 year to year and we were looking in the high individual digits and indications that are really roared back in march, the trading revenue. loans quarter on quarter plus 1%, that's the call on growth. that was in line. last quarter, quarter on quarter, the growth was 2%. that's broadly where we expected a

call: analysts on the last had asked tim sloan, the ceo and cfo, john screws very -- john shrews veryh. none of those executives wanted to talk about it on the first quarter call. alix: thanks so much. laura keller from bloomberg news. and now we want to earning numbers of the day. -- big moves happening in caterpillar. earnings the midpoint guidance to $3.75, almost two dollars more than the previous guidance. looking at $41 billion. they did warn they will see current volatility for the rest of the year. nonetheless, a solid quarter, sales up 1%, the first time since 2012. on the top and bottom line. expect local, organic sales growth to come in -- forecasting they will not meet their contractual requirements again. it did not deliver nine of the fighter jets, only 57. he had the good and the bad. jonathan: the good is helping us big-- from yesterday's sweep. coming up, dave cote, honeywell executive chairman will be joining us. from new york city, you are watching bloomberg tv. ♪ ♪ jonathan: 24 hours away from announcing his big tax plan, president trump is said to call for the cor

three of the new board members, including tim sloan, i'm told are coming in at well above that thresholdre is that they're not really responsible for the scandal since most of them were not affiliated with the company at the time it took place one analyst i spoke with that it's highly unlikely that they'll choose to oust most of the board. >> it strikes me as somewhat unlikely that investors would simply, you know i try to wipe the slate clean for an entire board. it's virtually unprecedented. >> reporter: now, unlike political voting, shareholders can actually change their votes up until the end of today's meeting, so we'll be watching for that, as well as the q&a portion, which could be quite contentious, guys. >> thank you, leslie. >>> in the meantime another tweet from president trump -- don't let the fake media tell you that i've changed my position on the wall. it would get built and help stop drugs, human trafficking, et cetera, all of this coming aheadsh did or question mark on whether the government should shut down a friday. he's been pulling away a little bit from including th

. >> reporter: the bank's now ceo, tim sloan, speaking to cnbc, just after a newly-released internal report, pinned most of the blame of the scandal on former chief executive john stumpf and carrie tolstedt. aggressive sales management that created pressure on employees to sell unwanted or unneeded products to customers. last year, wells fargo acknowledged its employees opened up 2 million checking and credit card accounts without authorization to meet sales goals. >> it was very frustrating. these are accounts i never opened. >> reporter: the bank agreed to pay $185 million in fines and said it had fired 5,300 employees. >> we recognize now that we should have done more sooner. >> reporter: in september, stumpf was grilled by congress. >> your definition of accountable is to push the blame to your low-level employees who don't have the money for a fancy p.r. firm to defend themselves. it's gutless leadership. >> reporter: tolstedt's attorneys released this statement. "we strongly disagree with the report and its attempt to lay blame with ms. tolstedt. a full and will fair examinatio