that was not at wells fargo. so i'll just say i suspect you'll find lots of this activity elsewhere. turning to sarbanes-oxley where a ceo must sign off on the sufficiency of internal audits, and clearly from this hearing the conduct was relevant to a bank's reputation and therefore to -- certainly of material interest to investors. should the s.e.c. launch an investigation of this in terms of those sarbanes-oxley reports? >> i'll leave that to the s.e.c. >> and finally, in the settlement, wells fargo was allowed to neither admit nor deny wrongdoing. we heard today the result, the head of the bank comes in here and says, we didn't do anything. just a bunch of bad apples ethically misguided. it bothers me. was that debated and wrestled with? why was wells fargo allowed not to admit wrongdoing. >> here is my thing on that. the order speaks, very detailed, tells facts as we establish them through the investigation. that is the story. we'll can quibble with it if they want. that is the story and it is the story that'

what is wells fargo doing about that? >> senator -- >> or did that information not get reported to the credit bureaus? >> well, when we pull a credit -- >> just tell me, did the information, if there was fees and fines involved and the credit bureaus requested it, or even if they didn't, did that information get forwarded to the credit bureaus? >> i'm trying -- sir, i'm trying to work with you. >> yes or no works. >> yes, we pull the credit bureau for each one of these cards. >> okay. so, what's wells doing about fixing that problem? and be concise. >> okay. we are calling each credit card customer to find out if this truly was a card they wanted. if they want it, we don't want to take away their credit. if they did not want it, we're going to go back and make sure that it's made right by the credit bureau and made right by the customer. >> and what's the time frame for that? >> we already started that process. >> okay. so now, this took five years. it's been documented. 2011, maybe even started before that, but 2011 unti

then the now wells fargo. when i heard him on the stand this morning, i'm appalled that that man would be allowed to steal from us. i don't want no one in the banking industry that does these sort of things, sir, i mean, that means they could steal enough money and this bank could go under. this man needs to be either in prison or he needs to be fired rom wells fargo. it has left a nasty taste in my mouth. i know the federal government squanders my money. but i don't have a lot of money. so i don't want nobody of his caliber to be in that title position. when he's stealing from poor american people. i don't know whether everybody heard him today, but he sold 13ds million worth of stock in 2013. he's a disgrace, he needs to be in prison. thank you. host: thank you. 5,300 employees have been fired as a result of the nearly two million or up to two million accounts that were created unauthorized or fraudulently. here's jerry, also a wells fargo customer. springfield, virginia. hello, there. caller: yes, hello. i'

is croft selling an industry wide reality a as is evidenced by wells fargo or unique to wells fargo? mr. stumpf: i don't know what other companies do. i know we view it as an important metric as it relates to depth of relationship. senator menendez: you don't reveal what your competition is doing to figure out if there ising it something you should be doing. mr. stumpf: i do not. senator menendez: let me ask you this. you said it was not a material event to senator merkel. -- merkley. how about material event for the s.e.c. disclosure? mr. stumpf: i'm not lawyer and i rely on my legal team. senator menendez: based upon what's happened to the stock for your shareholders, it definitely was a material event that should have come forward. let me ask you this. miss toll stead, in response to one of the questions you said that you and the c.o.o. met with her and said you wanted to move in a different direction, correct? she decided to leave. that sounds to me a lot like you can either leave or you're not going to -- you are going to be fired, maybe. but is it that you created a situation t

i look at you, i look at wells fargo. i know it's a big organization. 268,000 employees. 268,000 jobs. thank you for that, sir. you know something, i don't think management, which means you, knows the difference between right and wrong. i'll tell who you does. the people i represent in maine. i represent 650,000 of the most honest, hardworking people you can ever find anywhere. they know the difference between right and wrong. one thing i want to throw out in your lap right now, be very clear, i don't know where this is going. but i will not support in any way, shape or form, any kind of bailout using taxpayer money for wells fargo. you're going to get through me and a lot of other people on this committee. here's what i worry about. i worry about wells fargo. you have 268,000 employees. how many attorneys you got over there? mr. stumpf: i don't have that number. mr. poliquin: more than 10? mr. stumpf: yes. mr. poliquin: more than 1,000? mr. stumpf: i don't think so. mr. poliquin: you have a lot of attorneys. i don't worr

wells fargo employed. days following our office received cars, letter e-mails from wells fargo customers and current and former employees. they described a veritable litany of experiences. money through authorized accounts to pay fees assessed by wells fargo to unauthorized accounts. they complained their unauthorized accounts sent to debt collection agencies and derogatory notes were placed in the credit reports. for wells employees, learned of the status wells used and extreme pressure placed on employees for unrealistic sales quotas. in short, what we learned before and after we filed our case was not only wells fargo's conduct inexcusable but seemed to be systemic and widespread. early this month we reached a settlement with wells fargo, conjunction with the federal agencies represented today, provides for comprehensive remediation and corrective actions and sends a strong message to wells an customers by imposeing a $50 million penalty, the largest in the history of our office. our agreement first est

just this event has cut $25 billion ooch the value of wells fargo. -- off the value of wells fargo. do you know what the value of ford motor company is, mr. stumpf? mr. stumpf: i do not. mr. himes: $50 billion. just since the 7th, you have and your organization and the culture have obliterated a full half of a ford motor k that has to be material, doesn't it? -- motor company. that has to be material, doesn't it? mr. stumpf: i don't want to diminish this. i'm deeply sorry we didn't do the right thing. i understand that reearning the trust of our customer and american people is going to be our biggest challenge. mr. himes: i do want to get away with the numbers. i'm troubled by the culture thing. do you think that you can fully measure wells fargo's value with the hard assets, dollars and cents, numbers of the accounts. let me ask you it another way. wells fargo's reputation and brand an important part of the company's value? mr. stumpf: no quefment mr. himes: do you believe that wells fargo -- mr. stumpf: with an explanation. i think frankly what is in the hearts and minds of our pe

of wells fargo and company. mr. stumpf has held a number of senior management positions at wells and its predecessors where he has worked for 34 years. mr. stumpf, would you please rise and raise your right hand. do you solemnly swear or affirm that 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 witness' written statement will be made part of the record. mr. stumpf, you are now recognized for five minutes to give an orel presentation of your testimony. mr. stumpf: chairman hensarling, ranking member waters, members of the committee, thank you for inviting me to be with you today. i'm 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 de

i am a wells fargo customer, also a 37 year wells fargo employee. host: wow. caller: i spent 20 years in the retail bank side, and it is very sad to hear the employees talk about this,, this culture at the ban. host: it's not the culture that you experienced, in your branch? caller: no, it is not. who worked with me for years, we have code of ethics training, we have always done what is right for the customer. i would like to hear other wells fargo employees come out and stand up for john stumpf. it's painful to watch him go through this, when he is a good man and does the right thing, and they are blaming him. it's really tough to watch. host: we have another employee on the line after you, so we would take her call in a minute. what you have been hearing from lawmakers, this does not ring true to what you have seen, being an employee there? caller: no. wells fargo is a large organization, and i think the good definitely outweighs the bad. host: let me get marianne on the line, walnut creek, california. you are actually able sort of customer. i think i misspo

wells fargo has come up short. are listening to it and peter, he thinks that sherrod brown there was rather tepid, do you think? >> it just seemed sort of measured. one thing that he mentioned that has not come up much in the press, the board of directors. where was the board. you have the head of the corporate responsibility is pena, the former senate transportation committee. and the former head of deloitte and the former head chairman of general mills are the lead director. where are these gentlemen during this? where is the board? they're the ultimate governors, protectors of the shareholders. stuart: would the board have known about this? does it go that high? >> absolutely. once you have a lawsuit of this magnitude, with are this got hit and where it really happened is if you look at the $14 billion fines and other multi-billion dollar fines, this is 185 million. so, it was so low on the fines they'd already written off enough, it was 1.3 billion they wrote off last year so it got buried. stuart: liz, what ha

john stumpf runs wells fargo. 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 right-hand 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. we'll see what she has to say to john stumpf. it is almost 9:5950 seconds. the hearing will open. left-hand side of the screen that is the fox news camera trying to get a good look at the hoboken train station where a train p

shame on wells fargo. and i didn't get to my question, but hopefully at one point i want you to testify to how many cfpb employees were embedded at wells fargo. >> time for the gentleman has expired. the chair recognizes the gentleman from massachusetts, mr. capuano. >> thank you, mr. chairman. thank you, 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 bipartisan to congress. we're all together on this. we are not happy. they already started. the last few minutes they've been running a graphic in the back, and my colleague had run through some of them. but i think it's important to know what some of the other things you have done, what they were. they weren't just fines. you screwed student loan holders, credit unions, fannie mae, freddie mac, mortgage holders, african-americans, hispanics, health care workers, on and on and on. by the way, i understand this isn't material. just five months ag

is that evidenced by wells fargo or is it unique to wells fargo. >> i don't know what other companies do. i know we view it as an important metric as it relates to depth of relationship. >> so no other banks do this. >> i don't know what they are doing. >> you're not your competition so you have no idea of their doing cross-selling. >> i do not know. >> okay will have to ask the regulators. so material events for the fcc disclosure which you say you never made. >> i'm not a lawyer and i rely on my legal team. >> based on what's happened to the stock for your shareholders, it definitely was a material event event that should have come forward. the me ask you this, in response to one of the questions you said you and the 00 met with her and you wanted to move in a different direction direction and she decided to leave. that sounds to me a lot like you can either leave where you're going to be fired, maybe. is it that you created a situation to give her the option to leave because you were concerned about what she might say about practices of the bank and higher-ups? in fact, when they s

what is wells fargo doing about that? or did that information not get reported to the credit bureaus? me. tell did the information come if there were fees and fines involved and the credit bureaus requested it or if they didn't, was that information forwarded to the credit bureaus? mr. stumpf: i'm trying to work with you. senator tester: a yes or no works. mr. stumpf: yes, we pull a credit bureau for each one of these cards. so what is wells fargo doing about fixing that problem and be concise? we are calling each credit card customer to figure out if this was a card they wanted. if they wanted it we do not want to take back their credit. if they did not want it we will make sure it is made right by the credit bureau and the customer. senator tester: what is the timeframe for that? mr. stumpf: we already started the process. senator tester: so this took five years, 2011 to fairly recently. if i have had a credit card inued in the first molly and the meantime between 2011 and now i decide to buy a house and that informatio

just this event has cut $25 billion ooch the value of wells fargo. -- off the value of wells fargo. do you know what the value of ford motor company is, mr. stumpf? mr. stumpf: i do not. mr. himes: $50 billion. just since the 7th, you have and your organization and the culture have obliterated a full half of a ford motor k that has to be material, doesn't it? -- motor company. that has to be material, doesn't it? mr. stumpf: i don't want to diminish this. i'm deeply sorry we didn't do the right thing. i understand that reearning the trust of our customer and american people is going to be our biggest challenge. mr. himes: i do want to get away with the numbers. i'm troubled by the culture thing. do you think that you can fully measure wells fargo's value with the hard assets, dollars and cents, numbers of the accounts. let me ask you it another way. wells fargo's reputation and brand an important part of the company's value? mr. stumpf: no question. mr. himes: do you believe that wells fargo -- mr. stumpf: with an explanation. i think frankly what is in the hearts and minds of our p

what is wells fargo doing about that?re did that information not get reported to the credit bureaus? mr. stumpf: when we call a credit -- sen. tester: just ask me, -- just tell me. fees and fines involved and if the credit bureaus requested it, or even if they do not, did that information get forwarded to the credit bureaus? mr. stumpf: i'm trying to work with you. sen. tester: yes or no works. mr. stumpf: yes, we pulled a credit bureau for each one of these cards. sen. tester: what is wells doing about fixing these problems? be concise. mr. stumpf: we are calling each credit card customer to find out if this truly was a card they wanted. if they wanted it, we do not want to take away their credit. if they do not want it, we are going to go back and make sure that it is made right by the credit bureau and made right by the customer. sen. tester: what is the timeframe for that? mr. stumpf: the already started that process. sen. tester: this took five years, it has been documented -- 2011 till fairly recently. if i had had

duffey the mounting evidences about san francisco hometown bank is shocking it reveals that wells fargo used personal information about their clients to open without their permission and transferred funds as treasurer i'm responsible for keeping the city save and 10 years ago i started the bank an inform program i believe that everyone money is safety in the a banknote held in cash or under a mattress when i learned that protecting people in the city if have basis assess he worked with bans and credit unions to create low-cost accounts without barriers to assess now thousand of san franciscans every year opened their first behind the eight ball through the bank on san francisco and bank that programs in dozens of cities across the country and last year, we annunciations bank think standards for save behind the eight ball with no overdraft fees so after hearing about the actions of wells fargo i met with an executive to find what information and advise to provide to the san franciscans he couldn't give me basic information including how many san franciscans were effected had they been no

wells fargo's reaction has been remarkable. it did not treat this the as a big problem until it appeared in the newspapers. it did not begin to make customers whole until year. we don't know whether the bank chose or was told they had to do so. wells fargo is taking out full page ads claiming it is accountable and it has not admitted to responsible for a single misdeed with the city and the fem government. wells fargo claims to have made things wright its customers, but its efforts, it's not clear that pw c. calculated the cost of a lower credit score, which might be paid every month for 30 years. at times the bank has been down right hos tile to customers. rather than letting victims have their day in court. wells forced customers to abide by the arbitration, clauses in their real accounts. the bank invoked the fine print on a real account, to block redress on a fake one which wells fargo had created. wells fargo team members, many struggling to support a family on 12 dollars a an hour, is tellers, make about $11.80 on hour. t

according to the average wells fargo banker teller average salary is $45,000 and wells fargo personal bavger is $37,560. so imagine -- do you know what the poverty wage is for a family of three? >> i do not have that in front of me. >> let me share it with you. i didn't think you would. it's $24,300. for a family of three it's $20,160. so imagine for a moment, you're a single parent working with two young children as a personal banker in wells fargo branch. your base salary is somewhere in the $30,000 range. you have a hard-driving boss breathing down your neck to meet rigorous sales quotas. you have to call into a call center when you don't meet those quotas. if you don't meet the quota one day, it gets carried over to the next day and you have a higher quota. forget about the incentive of making more money. in essence, this is about losing your job. and you think that that environment was the appropriate environment to protect your customers and to have the culture that you portray here that wells fargo had? >> senator menendez, i get your question. we have been reducing sales goals

>> that has no place in wells fargo. there is nothing that we did to encourage that. >> nothing you did but bank managers were being coached on how to coach their employees on how to do this. how about a branch manager in the pacific northwest where i come from. she was very upset that a homeless woman was talked into opening six checking accounts. it's all manipulation. we are taught exactly how to sell multiple accounts. it sounds good but in reality it doesn't benefit most customers. let's talk about 2008 after being hired for two months, one employee found these false accounts were happening and she went to her trainer and her manager and she was basically found -- she was pushed very hard to shut up in all kinds of different ways. you say the employee could have gone to somebody. she did. eventually, she filed a whistleblower suit and why did wells fargo say that was not legitimate? i will save you the time for the answers because wells fargo said we fired her because she didn't meet her quotas. so, here here we hav

let me get first to the comment on wells fargo.you on to talk about mylan before the wells fargo situation broke. so this is your first comment, publicly about how you feel regarding this? >> well, as the fish rip of the forth largest public pension fund in the united states, 14th largest in the world, this pension fund protects retirement security of 715,000 people. and it is truly outrain just that wells fargo complicit in opening up phony bank accounts, putting our pension fund at risk is outrageous, unacceptable. i believe that regulators should be up and down this company. the question is, who is responsible? we have to make sure the highest level of the wells fargo board is held accountable, not middle management or the underlings. liz: you're saying the ceo and chairman, john stumpf. want our viewers to know, you own nearly valve your shares of wells fargo? >> $500 billion. liz: half a billion dollars. if you look at announcement of the settlement september 8th, the stock has fallen since then. this has got to be churning yo

i haventative moore: learned so much here and i know when you go to wells fargo -- the wells fargo website there your picture is, john g. stumpf, the vision and values of wells fargo and it features you. you say you started with wells fargo in 1981. mr. stumpf: 1982. oore: ok, myve m math is not that good. you were trained and you knew what the culture of this norwest company, i guess there was a merger of wells fargo and norwest and so, did you receive training or do you know if the employees received training on this going for great program that we have talked about here today where most of your customers only had five accounts in your bank and that there was an effort to get at least 8 accounts for customers, was that part of the culture? mr. stumpf: that was an aspirational goal and most of our customers totals had 14. and so, as your predecessor noted, there is this abundant growth potential in the wells that onetomer base and of the sayings around the place .as we expect what we expect so, whether constant monitoring's to see if people were meeting these goals? we expect what we expe

the retail arm of wells fargo.ect the dots on these high level trends across the bank. do you or didn't you know in 2011 that perhaps your salesin ce -- 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, it's 1%, but that's a big number for a big organization. any time -- 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 a customer and something wrong for us. that's why we're removing sales goals. they'll be gone as of this weekend. in fact, we don't even think they're an important requirement anymore for us to continue to grow. >> mr. stumpf, some people assume that you change your customer agreement to add force arbitration clauses, checking accounts and that these clauses prove to be incredibly helpful when you use

shame on wells fargo. i didn't get to my question but i hope you testify to how many cfpb employees were embedded at wells fargo. thehensarling: time of gentleman has expired. the chair recognizes the gentleman from massachusetts. >> thank you. i want to thank particularly you for doing something today that no other person has been able to do in the last four years. you have brought true bipartisanship to congre. we are all together on this. we are not happy. they already started. the last few minutes, they have been running a graphic in the back, my colleague might through some of them. it's important to know what some of the other things you have done, what they were, they were not just fines. you screwed student loan holders, credit unions, fannie mae, freddie mac, mortgage holders, african-americans, .ispanics, health-care workers on and on and on. by the way, i is not material. paidfive months ago, you $1.2 billion in a fine. this is only 15% of that. who cares? wewill pretend to be sorry, will fire s

wells fargo's reaction has been remarkable. i did not treat this as a big problem until it appeared in the newspapers. did not begin to make customers whole until this year. we're not sure whether the bank chose to do so or were told to do so. wells fargo taking out full page ads saying it's responsible. it has not admitted responsibility for a misdeed with the city of los angeles and federal government. wells fargo claims to have made things right with its customers but its efforts have been incomplete. for example, it's not clear pwc calculated the cost of a lower credit score which might be paid every month for 30 years. at times the bank has been down right hostile to aggrieved customers. rather than letting fraud victims have their day in court, wells fargo forced customers to abide by mandatory arbitration clauses in their real accounts. you heard that right. the bank invoked the fine print on a real account to block redress on a fake one which wells fargo had created. wells fargo team members many struggling to support a

of wells fargo and company. mr. stumpf has held a number of senior management positions at wells and its predecessors where he has worked for 34 years. mr. stumpf, would you please rise and raise your right hand. do you solemnly swear or affirm that 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 witness' written statement will be made part of the record. mr. stumpf, you are now recognized for five minutes to give an orel presentation of your testimony. mr. stumpf: chairman hensarling, ranking member waters, members of the committee, thank you for inviting me to be with you today. i'm 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 de

julie: i want to start with wells fargo. wells fargo shares have been holding up relatively well.y, they are up by about 1%. they had fallen as news of these firings surfaced. the stock was upgraded to an rarelyght today, saying have the shares been more inexpensive, trading at about 1.3 times book right now. that is one of the things that is perhaps a catalyst for some of the buying we are seeing for the shares of stock we are seeing much change. this treading water as investors await commentary and decision-making from the federal reserve and bank of japan. note a couple things and commodities. we have been watching oil prices. there is a reversal in the price of oil. we saw a reversal higher after we got back commentary. now you will see oil is making a round trip and going back down again. natural gas hit three dollars for the first time in 16 months. you can see it's up above three right now. end to had a hot september. a live air-conditioner use. -- a lot of air-conditioner use. it's time to shift gears away from wells fargo and what you are doing with your air-conditioner t

wells fargo is going up.stop. >> maybe the apologies are worth every apology is worth something in the stock price. as you hear the applause building here at the nyse, you can see here at the big board, marcelo claure, ceo of sprint. celebrating a new marketing campaign. we'll speak with him in a couple minutes. over at the nasdaq, icf international. there it is. looks like we'll as we expect, set up for a higher open. you can see more green on the old realtime exchange. >> oil turns up because of rumors that someone is going to start. oil is still not going the direction that the bulls want. i keep that in mind only because yesterday the market was fine and oil was up 90 cents and then oil reversed to be up 23 cents and it took the market down. >> so that's still another key to this market. >> it's kind of everything. >> speaking of wti, near the low of the session. 42.61. that's about six weeks we haven't seen that price. >> i don't think the rally is sustainable. >> 11th of august we traded around 41 bucks

those who werere betrayed by wells fargo are not forgotten. it is on their behalf that our committee has launched an in depth investigation of your banks activities. today's hearing is just the beginning of our investigation. it is not the end. our committee is gathering thousands of pages of records and documents from both wells fargo and the relevant federal regulators. was margo questioning executives. if necessary, i will not hesitate to issue subpoenas because we will do what is necessary to get to the bottom of the matter. stumpf, we don't know what you knew or pointing at him. we know it happened on your watch. for theyou accountable answers to why this happened. at last week's senate hearing, you are uncertain of any matters. in the into many days, we trust that you have had a chance to refresh your recollection to review your records. will provide complete answers today. we need to know exactly when and how you and other executives at wells fargo found out about this fraud. we need to find out today what you directed others to do abou

times to uncover what was going on at wells fargo. i hope my friends on the other side of the aisle will keep that in mind as they may cut the cfpb on the back for a job all done. in the time remaining, let's get to the securities question. the skiers exchange act required companies to keep its disclosure in place, required the ceo to a test financial statements. thoseu saying that all of quarterly reports you are filing, the information you had, none of that material, none of that information was material? the facts: through and circumstances at the time, we found accurate reports and we did not believe it was material. rep. garrett: when you got the price waterhouse cooper analysis, one was that? earlyumpf: late 2015, 2016. rep. garrett: as soon as you had that, was that filed as material statement? mr. stumpf: we consider the facts and circumstances and we consider it not to be material. rep. garrett: not material. why not? materialf: the pwc looked at 93 million accounts that we opened over four years. they could not rule out thro

fargo? if you want to make the bet or -- >> i'm saying if you don't want any wells fargo -- >> i get it. >> you can't play the xlf anywhere even if there's a bounce. let's get to the other big story of the day, of the week. apple's iphone 7 release sending the stock surging 11% this week. the product hit the shelves today and people are still lining up across the globe for a chance to be the very first to own the new phone. but how much does the size of the line matter for the stock? josh lipton is at the palo alto apple store with all the details. hey, josh. >> reporter: melissa, fans are still lining up at this store here in palo alto behind me waiting to get their hands on that new iphone 7. so the question is whether those lines tell us anything about stock performance. remember, piper's gene munster tracks lines at the apple store in new york city on 5th avenue. we then look to see how the stock performs in the three months following the release of new phones, and you can see that the i

a group of senators is taking the investigation into wells fargo one step further. now they're asking the labor department to get involved. >>> hands-free. tesla rolls out its new version of its auto pilot. but how much control should drivers hand over to computers? those stories and more tonight on "nightly business rep for thursday, septem >>> good evening, everyone, i'm sue herera. tyler mathisen is on assignment tonight. we begin with the markets, where invests were in a risk-taking mood. the nasdaq closed at an all-time high after stocks rallied following the federal reserve's decision yesterday to stand pat on interest rates. gold and crude also rose. bond yields fell as did the dollar. investors were also trying to make sense of the positive report on the labor market and also the disappointing housing numbers. so the dow jones industrial ga 18,392. the nasdaq added 44 to an all-time high of 5,339. and the s&p 500 was up 14. more now on that report on housing, which may be showing some new signs of weakness. sales of existing homes in august declined unexpect

wells fargo has been more aggressive than any bank trying to upsell customers. they would upsell people ironically wit a product, identity theft protection service, expensive and almost worthless. it wouldn't have prevented any of these accounts being opened. you can barely take 40 bucks out of the atm without being upsold extra products and services you want. >> they're known for being aggressive. what about the arbitration clause that is in wells fargo and also common not only in the banking industry but in other industries where you can't take them to court, you have to arbitrate. >> this is an interesting wrinkle to the problem. i think basically binding mandatory arbitration takes away your right to take them to court, bind together as class action. it forces you into courts that they're paid effectively by people that have wronged the consumers in most cases and rule for over 95% of the time in favor of the corporation. if you lose your legal and constitutional right, and it is worth checking if you were a consumer concerned about this to find out whether

wells fargo will also pay 5 million dollars in refunds to customers. wells fargo says "when we make mistakes, we are open about it, we take responsibility, and we take action." now -- more years and the federal regulator says the bank will pay full restitutions to all people affected. i'm mary moloney reporting. ((brian loftus)) >>> this morning a nasa spacecraft is on the way to bennu -- a small asteroid orbiting the sun... spacecraft osiris rex is on a seven year mission hoping to bring back a handful of dust that could hold clues to the beginning of our solar system. if the mission is a success the largest cosmic bounty of space samples since the apollo moon rocks. the spacecraft will reach earth in september 2023./// ((kirsten joyce)) >>> brian's cool at school is back. ((brian loftus)) >> that's right i'll show you how high school are relieving stress through a new class./// brian loftus i'm catherine cortez masto and i come from a big family. e. and a whole lot of food. my dad's family was from mexico. my mom's was from italy. 60 years ago they m

regulate, fined wells fargo $185 million earlier this month. some 5300 employees were fired but judging from today's expected announcement there is more fallout to come. >> the banks get away with murder. and will anyone go to jail for this? how can the ceo say he was completely unaware? is that possible? if it is true, isn't that incompetent? >> reporter: wells fargo is planning to contact every customer affected by this issue and will end sales targets for retail bank workers by the end of the year. the city treasurer is encouraging 13 other cities around the country to ditch wells fargo from their "bank on" program. live in san francisco, anne makevoc, kpix 5. >>> the man accused of hitting the sacramento mayor in the face with a pie is expected to be charged today. sean thompson is in jail facing felony assault charges for the attack. from behind bars, he told reporters he has no regrets. he said he was mad at the mayor for paying too much attention to the new sacramento kings arena instead of real issues. >> if he had put the energy into t

wells fargo is stable institution. we're not talking about hedge funds selling wells fargo stocks.hey're not systematically, not blowing up to kill the financial system. this is well-run bank. they have to be really careful with this, sort of anti-capitalism taken to another level by both parties. somebody has to put this in perspective. they think cross-sell something a crime in there. cross-selling is not a crime, no offense. neil: none taken. charlie gasparino, thank you very, he have much. so great having him in washington. he is right there annoying all these guys. all right. we've got much more on this banking selloff that is leading to big stock selloff. hasten to add here though that the story we're also following, we promised you we would go to it when officials start talking to the press, governors of new jersey and new york, key port authority people are in charge of the transportation services. that joined these two great states. they will be speaking very shortly about what happened today in hoboken, what they know right now. stick around. neil: all right. jersey city

wells fargo employees continue to years. my understanding is something on the order of over $29 in bonuses for her between 2010 and 2015 were awarded because of strong crossover ratios. yet we know in some cases, she was hitting numbers by the fraudulent accounts. it is unbelievable. do you engage -- mr. stumpf: i am not a criminal officer and i do not know, i am not a lawyer, i know this. ethics,ke our code of they were dishonest, and we did everything we can to support law enforcement in these issues. sen. toomey: i am not a law enforcement officer either but i think most people understand the meaning of fraud. fraud is a knowing misrepresentation or knowing concealment of a material fact act to can -- make another in this way -- how does this not meet that definition? mr. stumpf: if that is the definition, -- i can tell you this. it is absolutely wrong. we found this out and got rid of those people in that behavior has no place in our culture. if that means fraud, then that means fraud. >> at what point did you alert regu

why was wells fargo allowed to not admit wrongdoing? >> so here's my point of view on that, senator. the order speaks for itself. it is very detailed. it tells the facts as we established them through our investigation. that is the story. people can quibble with it if they want. but that is the story. and it is the story that is forming vigorous public scrutiny going forward and potentially other investigations by other public officials, which we will be welcoming and assisting in any way we can. >> doesn't it make it harder, though, to hold the managers accountable to the board of directors of a company when they haven't admitted any wrongdoing? >> i think actions speak louder than words. the notion that nothing happened here but they fired 5,300 people, those things cannot possibly be squared. >> i also think, senator, we wanted to get relief to consumers as quickly as we could. it's very typical, i practice law, i've been at law for 35 years, for nonadmissions to be part of an agreement. it would have taken years to litigate this cas

charges filed against the head of wells fargo bank.wells fargo c-e-o john stumpf is under fire for leading the bank as employees illegally opening as many as two million unauthorized bank and credit card accounts the bank fired more than 5- thousand low-level employees, and stumpf and another bank executive forfeited millions in options. "i am fully accountable for all unethical sales practices in our retail banking business and i am fully committed to fixing this issue, strengthening our culture and taking the necessary std actions torestore our customers' trust.""mr. stumpf, the word games stop today. without permission is not a sale practice violation it is stealing. using customer soal security numbers to open credit cards without their consent is not wrongf sales behavior it is identity theft. opening a credit card or bank account using someone else's information is a crime....but thousands of wells fargo employees who did just that... might get away with it. the why nobody has been charged and joins us now in-studio. eric-- steve and carole,no charges yet but a marqette law professor

peter: wells fargo's troubles are far from over. >> we will make sure that those betrayed by wells fargo are not forgotten and on their behalf a committee has launched in-depth investigation, mr. stumpf of your bank's activities. today's hearing is just the beginning of the investigation. it is not the end. peter: wells fargo's problems got worse when federal regulators announced the bank is paying $24 million in fines and payments to settle allegations about auto loans it made the military service members and illegally repossessed ability 400 cars while some personnel were away on active duty. back to you in new york. nicole: thanks so much. for more on this congresswoman member of house financial services committee will be joining us right here on fbn:am later in the show. >> we are looking forward to that. now in the race to the white house with less than six weeks of presidential election, hillary clinton and donald trump intensifies attacks on each other. blake berman has the latest in washington. blake: donald trump and hillary clinton have somewhat been crossing paths. both have s

erik schatzker joins us on wells fargo.will be testifying before the senate banking committee. there are distinct is we need to make on the cost -- the cost we have seen so far, and the overall total cost that will be haunting wells fargo. erik: absolutely. i have been digging about this. we know john stumpf, the ceo will be contrite, apologetic, and take full responsibility in his testimony before the senate banking committee, but the scandal continues to metastasize. to your point, the actual cost to wells fargo thus far is quite low -- $185 million in settlements, and the cost of reimbursing these customers, you know, for whom fake accounts were opened in their name. investors, of course, are trying todiscount the ultimate cost wells fargo, and in that discounting process, they put at least four variables. will john stumpf eating ceo of the bank, and can his heir apparent, president since long, run wells fargo profitably? that is number one. number 2 -- legal liability. potential class-action lawsuits from investors, and

and wells fargo will pay a fine of $185 million. >> thank you. >>> u.s. park police have just released a sketch of a man wanted in the "pokemon go" murder at san francisco's aquatic park. take a look. police say the man in this sketch was seen leaving the area where the shooting took place last month. officers also say the man is associated with this white four- door toyota avalon seen in a surveillance photo. it's believed to be a 2013, 2014 or 2015 model. this case drew national attention when 20-year-old calvin riley was shot and killed while playing the game "pokemon go" in aquatic park. police say someone just walked up and shot him at random. anyone with information on the suspect's sketch or the car is urged to call police. >>> new at 5:00 the city of oakland is taking action after an exclusive kpix 5 report. we found out surveillance cameras installed at cesar chavez park haven't been working for years. those cameras could have helped solve crimes. kpix 5's juliette goodrich shows us how the city is fixing the problem >>> reporter: it took tragedy

wells fargo is a decidedly domestic bank.s managed to steer clear of a lot of big problems that big bankers had, testifying before after the financial crisis, some of the big fines. they go into stump's own background. he grew up on a dairy farm a home town guy but has been paid like a wall street banker hundreds of millions of dollars while this was going on. this is fascinating as we'll see him up there on capitol hill in an unfamiliar position to his bank shareholders and to a lot of people watching this bank. >> absolutely right. unfamiliar position to him. in the past he's been seen as someone that hasn't given that greedy image that maybe some wall street bankers have been associated with. in the last couple of weeks that's being attached to him because he hasn't been stein apologize enough. how he manages what he said and the image he puts across is crucial. one point further when this first broke there was perhaps a sense among some of the big wall street banks oh, it's about time that wells is in the spotlight. they

. >> and wells fargo shares under pressure. ceo john stumpf, we'll take you live to washington for the latest details. >> duncan donuts is teaming up with coca-cola. nigel travis is in the house and will be joining us here to talk about the news and what some are calling a restaurant recession. get his view of the big picture in his industry coming up in a little while. deutsche bank falling on signs that some of the counter parties are reducing exposure to europe's largest investment bank. joining us now with more on this, cnbc fast money trader brian kelly. we have kate kelly and senior markets commentator mike santoli. it started around mid day when word got out that these hedgefunds were cutting back on their counter party relationship. >> the report just to review was internal document suggesting that a bunch of hedgefunds reduced they are relationship there. and essentially this highlights concerns about deutsche bank's overall health and whether it is the right place for hedgefunds to store capital or anyone to borrow. w

we are not ignoring the wells fargo story.argo chairman and ceo john stumpf, handing over the resignation from the ceo seat but federal advisory council. that is a group of 12 banking executives who advise the federal reserve board. he is stepping down from that, keeping his job at wells fargo for now. the banking giant and he run into a huge wall, taking a black eye in the recent scandal where two million phony customer accounts were created by blank employees so they could hit their goals, their sales goals. the scandal resulted in firing of 5300 employees and wells fargo paying $185 million fine. so far, the bank paid that penalty, many are saying pay a heavier penalty. john stumpf could walk away with a $200 million golden parachute if he is forced to leave wells fargo. joining me one. initial whistle-blowers tried to bring the scandal to light. a former wells fargo personal banker. currently a member of the committee for better banks. thanks so much for joining us. you're coming out pretty strongly here. you say that john

wells fargo wagon. >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get cs for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. please