mr. stumpf: yes. mr.fy: so as wells fargo back to 2011 is stealing from their customers and by the way, banking is based on trust -- mr. stumpf: correct. mr. duffy: i don't care if it's 10% or 1% or half a percent of the people you do business with, if you're stealing from them, in 2011, 1,000 people are fired for stealing, and what do you do? you don't fix the problem. and 1,000 people are fired in 2012 and you don't fix the problem. and in 2013, 1,200 people are fired and we still have a problem. and you're stealing from people. so how do you -- listen. i guarantee you that any bank in my community, if they were stealing from someone at the lower level, fired and fixed the problem on day one. mr. stumpf: that's what we're trying to do. mr. duffy: no. trying to do, we're five years on. mr. stumpf: let me say as we -- this problem, we didn't -- when somebody would open an unauthorized account, a savings account or checking account, it was not until -- and when an account gets opened and not funded, it's r

mr. stumpf: i did not read that article. i know a lot of the should have done this earlier. >> my time is up and i yield back. >> the gentleman yields back. thank you, mr. chairman. and chairman of the board of wells fargo, is that correct? mr. stumpf: that is correct. >> how long have you had that position? mr. stumpf: december 2007. >> ok. mr. stumpf: beginning of 2010. >> how long have you been with the bank? mr. stumpf: it will be 35 years. >> you have been at the bank in a long -- for a long time. i would conclude you know the bank pretty well. mr. stumpf: i love this company. >> q what really bothers me among other things? i am looking at this pattern of you folks ripping off your customers, getting caught, paying a fine and doing the thing all over again. had 13 instances of this in the last six years. billion a total of $11 in severance finds. used as your before us and told us several times, you know the difference between right and wrong. you are the had banana over there. i look at you, i look at wells fargo. i kno

mr. stumpf. he has been in that role, as up since december of 2015, also head of banking until this week. so that removal perhaps paved the a way a little bit. kmebtsz reported by the "wall street journal" earlier this week had him saying he was looking forward to the earnings call, which is this friday. and setting out the plan for the company moving forward. so it does come as a surprise, and, of course, just two weeks ago at the senate hearing, mr. stumpf committed, he being the person that wanted to lead this forward. clearly, the pressure has got too much. framed as a retirement. but no doubt the pressure internally and external also forcing the hand in terms of the decision to move on. guys? >> will, thank you so much. wilfred frost joining us. and shares now up by 1.5%. first analyst to slap a sell rating on the stock, dick, great to have you with us. does its removal make you inclined to rethink your sell rating? >> no, a sell is a sell and a sell is based upon the fact the fundamentals o

mr. stumpf's departure was a necessary condition for the company to move forward. mr. sloan said mr. umpf thought it was. >> i think john's decision to retire is one that, you know, is clearly sad for all of us at wells fargo, because we think so highly of john and his leadership in the company over the last decade. but he concluded this was the right thing to do for the company, to allow it to move forward because he felt that the focus on him was becoming a distraction and hindrance to the operations of the business. >> but was it a sufficient condition? >> oh, there's a lot to be done. wells fargo is a company that's made up of 260,000 team members, all across the country and all across the world. and no one individual is necessarily going to make the difference. we all have to work together to restore the reputation of the company, to continue to focus on moving the company forward. so, one person, whether it's john stumpf or candidly me is not going to make the difference. >> one person who clearly felt it was not a sufficient condition was senator elizabeth warren. she tweeted,

mr. stumpf earned? was given to him by the board?> well, i really don't have a big opinion on that, but i think you need to focus on another aspect, which is less and investors and more about the reputation of wall street, generally. my concern about is this it's another black mark on wall street. it really affects the ability of the federal government. particularly, the fed. that's the the issue i raise in my book. the more unpopular wall street becomes, the less possible it is for the fed to support it in a crisis are wr the fed should support it. >> i like your view, professor scott, not only because it agrees with with mine in a way, but the banks rightfully so in many cases are probably the most bruised and battered sector of the mark. you've got all these americans struggling to get by and you see somebody that's forced out. i have never seen company, s&p 500 company, krrk eo retire this abruptly. so kay, and who's walking away with by some reports, $140 million. forget about wells fargo. dig a little more into why this may har

mr. stumpf is. i don't think that he should be the ceo. i think they should have someone who was not in a management position at the time that all of this was taking place. >> i think their counter argument would be do you need someone who knows the mess to fix the mess, but we will watch and we will see what happens. congresswoman, thank you very much. >> you're so welcome. >>> coming up, women in battleground states are taking sides over the controversy surrounding donald trump's campaign. >> he wasn't saying what he does to women per se. i think he was just bragging. >> a number of people have said to me that what was sort of a i'm going to hold my nose and vote for secretary clinton has now turned into steadfast support. >> with pennsylvania on the line, donald trump's daughter tries to rally women to get behind her father. what did she say to do that, next. you're live in the cnn newsroom. originally built in the 1920s and '30s, the cars have been restored. cars can usually be found waiting for riders in many of the tourist hot spots.

mr. stumpf says he will not sell his stock options until the investigation into fake accounts is completed. he has apologized for the banks conduct. samsung stock has been battered since it announced it would halt production of the galaxy note seven phone. this after reports of fires started by batteries. consumers around the world have started handing back their phones. they offered $250 discount and then i'm getting a refund. genie: how are the markets doing in europe? lower.ks are trading investors reacting to the release of those fed minutes which have raised concerns about the november rate hike. the british government has been trying to provide more clarity about its priorities at his it pushes ahead with brexit proceedings. theresa may told members of parliament she would work to maintain maximum possible e accs to the european single market after leaving the eu. investors have been increasingly worried that she is placing immigration control before economics. the french finance minister met with u.s. banks while on a recent trip to washington, d.c. and he's confident there will be

mr. stumpf to leave albeit this, of course, is being framed as a retirement. and he was very clear that it was not a sufficient condition as you guys rightly said. there will be many more questions to be asked of him, perhaps in front of congress as he admitted might be the case, and many more actions that need to be done and taken before this is wrapped up. >> yeah. >> but i would say this was not expected today. it was not expected over the last week. so this is a big move by the bank as it was when we saw claw backs of pay a few weeks ago, and one would have to commend them on taking a big, significant step that otherwise hadn't been expected. and i suppose all eyes now turn to the earnings, they report 8:00 a.m. eastern on friday. >> is it a foregone conclusion amongst analysts that cover wells fargo that there will be large legal reserves, charges taken in this quarter, money set aside for litigation? >> that's a big aspect that analysts will be looking at, of course. i'd rehighlight the point that the $185 million fine so far was taken as a hit in the q2

mr. stumpf is leaving with all of his ill-gotten millions, that's still not real accounta. in an exclusive interview with me last night, the new ceo, tim sloan, confirmed there had been additi request from congre for information. of his own will go more smoothly. >> we disappointed that the hearin turne into a situation where there were more speeches given than questio asked. we felt like there was more answers that we could have t those hearis are over with and we're moving on. >> repor we' see tomorrow morning if there's been any financl impact. the other outstanding question what is morale like amongst the troops? i asked sloan whether this had been a proud or sad moment for him as he took over. >> it's a sad moment, because john stumpf is retiring in a situatn tha i think he would have never imagined. and he has done such a g job in managing this company, notwithsg some things that i think he wished he would have done differently. that's what it sad. having said that, i feel a great responsi, and i'm looking forward to being the ceo of this company. ep for "nightly " i'

mr. stumpf, as we mentioned, has left. mr. sloan in position now, part of old guard.nd there are those who are not satisf with his appointment to that particular post. how do y it? >> well, i think that there's -- i guess i would say i share some of those concerns. on the one hand, i think what tim articulated today was a very robust attem to fully assess and remediate the issues, and he acknowle, i think, at leas implicit if not explicitly, th was, in fact, a systemic issue, which was a characte that john st resisted. but i think that i shared the concer that not a single member of the management team is -- is new. they all come from inside the existi organization, including the new head of the retail banking business. and i think, you know, i wonder to what extent maybe new blood might a benefit. >> of the banks that reported today, quickly, eric, which do you holds the best inve >> well, the one that i like the best is citigroup, and i think what you saw today was that their growth and their consumer bank, particularly outside the states, is beginning to turn, whic

mr. stumpf brought himself. he was not fired or pushed out.t is something he has seen. >> this is some of the worst crisis management i have seen in my three decades covering the banking industry. they were reactionary. they did clawbacks and changed product sales. in response to questions. and they did not intervene early enough. the had known about problems since 2013. you're seeing the fallout from that. having said that, i think the change in ceo helps turn the page to a new chapter. >> banks in focus. j.p. morgan chase posting profit. >> here is what you need to know. return on equity double-digit, and big -- 13%. that is a number to make mr. dimon happy. a 1.58 is nice as well. beat, beat, beat. on jpmorgan.de stock up by 1.64%. similar story from citigroup. a beat. the stock up 2.2 3% in the premarket. wells fargo unchanged or your down 2.6%. income down. on an eps basis, it is still a beat on the margin, but the stock isunchanged. >> all of the free banks reported today reported a decline. the markets are delighted. it is not necessari

mr. stumpf is that this makes really good theater. they are calling for more hearings.here were calls to have the fired employees come in for hearings and some calls to have hearings of other bank executives to explain if they do cymer -- similar cross-selling types of approaches. even putting some pressure on the board saying, if the board hasn't fired you yet, maybe the whole board has to go. that will raise some eyebrows among the board and board members across the country will take notice of the anger being represented here. >> we know they have said something about this clawback of $41 million. the on that, he has not given beyond that, he has not given any ground in giving up his role as ceo or his position on the board. clawback -- he agreed to that. it was not exactly a clawback. it was voluntary. that stock compensation. that was something they wanted to offer to the house today to say, look, we are taking this seriously. i'm being held accountable. it's definitely not going to be enough to stop the rhetoric. ♪ scarlet: welcome back to "bloomberg best." i'm sca

mr. stumpf to the american people this feels like deja vu all over again.e institution is found engaging in terrible activities. there is a headline, fine and yet no one seems to be held accountable. >> wells fargo ceo grilled for a second time by members of congress. this time confronted by the house financial service committee on his bank's fake account scandal in which employees created two million phony accounts without customer permission, all of this to inflate the bank sales numbers. and when asked if anyone at the corporate level had been fired for the illegal practices, stumpf was forced to admit, no. >> within the 5300 there were managers and managers and managers of a manager. we are doing a full review. >> and were these branch managers? >> yes. about 10% or more -- >> nobody above the branch manager level? >> no, there was managers of the branch managers and a manager of those within a line of business. >> okay. pat powell is here, a certified financial planner. good to see you. >> good to be back. >> so thank you. so should john stumpf be inve

mr. stumpf is that this obviously makes really good theater. a couple of takeaways i have.y are calling for more hearings. there were calls to have the fired employees come in for hearings and some calls to have hearings of other bank executives to explain if they do similar cross-selling types of approaches. even putting some pressure on the board, saying, if the board hasn't fired you yet, maybe the whole board has to go. and that is definitely going to raise some eyebrows among the board, and board members across the country will take notice of the anger being represented here. >> we know they have said something about this clawback of $41 million. beyond that, he has not given up any ground in discussions of giving up his role as ceo or chairman of the board. >> he is saying that is up to the board, i serve at their pleasure. >> he is also the director of the board. >> exactly. the clawback -- he agreed to that. it was not exactly a clawback. it was a voluntary forfeiture, that stock compensation. that was something they wanted to offer to the house today to say, look,

mr. stumpf obviously did, that they gave people the wrong motives and led to bad behavior, i do not thinkhat should be treated as criminal. but what i do think and at issue here, we put in the bill that we wanted a change in the structure of incentives for people at the very top. we don't want there to be incentives for you simply to get more money if you do more and pay no penalty if you do more than you should. and that's something that has to be looked at. so it's not simply changing stumpf for sloan. it's changing the incentive structure in the bank at every level so people aren't given the motive to do things that hurt people. >> congressman schweikert, there was a moment in the congressional hearings where i recall stumpf saying something to the effect he would not call this a massive fraud. at that moment, i thought, uh-oh, because i think a lot of people disagree with that. particularly in the republican party, a lot of people speak out against excessive regulation. we've seen this incident at wells fargo, we're seeing how stum stumpf retiring with some considerable benefits. what

mr. stumpf, i regretfully have a mortgage with your bank. i wish i didn't.ion to pay it off, i would. you have broken my trust and you have broken the trust of millions of others and it will be a long, long time to earn that trust back. >> your bank, you, ceo, chairman basically for me on top of what has been a criminal enterprise. >> there's no question we don't do everything right. we've made mistakes. we're up our game. >> who is accountable for it. >> we'll make it right -- >> your vp made $152 million bonus package. your institution is making over $22 billion. who is paying for it? don't tell me you're sorry. >> one congresswoman made the case to break up wells fargo. listen. >> it's really striking me how huge this bank is. i'm also concerned about whether or not as chairman and ceo you can really know what is going on at the bank. i have come to the conclusion that wells fargo should be broken up. it's too big to manage. mr. chairman, i'm going to be talking with you and the members of this committee who showed their outrage here today on moving forwa

mr. stumpf, i regrettably have a mortgage with your bank. i wish i didn't.f i was in the position to pay it off, i would because you have broken my trust and you have broken the trust of millions of dollars and it will be a long, long time to earn that trust bac back. >> let me ask you what's on the minds so so many americans in this day and age, especially after the big banks and the failure. how is it that these folks who made that sort of move aren't going to jail? >> it's an excellent question and we have to hold washington accountable and wall street accountable so we obviously had wall street in to hold accountable but there's also questions, why have we had federal regulators embedded in the bank who have been conducting the exams for 18 months to two years? why did it taken a "l.a. times" reporter to break this in the first place? it's one of the reasons house republicans are working on something called the financial choice act that actually increases fines and penalties for fraud and deceptive acts like the ones that were committed at wells fargo. i

mr. stumpf -- >> what is your view on that? you're the guy who jumped in and bought wells when -- >> made a chunk of money knock on wood. especially feasted on the volatility because volatility was pumped up and high. and i said after i took the profits, i said wait for the next leg down. today you're getting that leg down. stocks down to 44 and change or something like in a. that is one that i would definitely look at especially as a payers trade. but i think kevin has been exactly right as far as ibb. that's where i have blood in the water. he's a shark, so he knows about those things. i would go after the blood in the water in the ibb just like kevin is doing. but financials haven't come down enough really for me to just go whole hog after those with the exception of wells. >> we'll take a quick break. that is good stuff. ken, you're sticking with us? >> absolutely. >> all right. here's what else is coming up on the halftime report. >> after long glib braces, kevin o'leary bought apple. catch position the jaump. now he likes

mr. stumpf was memorable, to say the least, on capitol hill.ou've put out a statement saying the selection of tim sloan raises questions. why? >> because tim sloan was part of the executive offices when this was going on. he's been there for some 29 years. and he didn't do anything in his executive position previously, so why is he in any different position than the outgoing ceo? i like the fact that they're separating the ceo from the chairman of the board, that's a good first step. but there's a lot to do. because the whole climate at wells fargo, we're not just talking about a small division that was regional. you're talking about something that was widespread. how can someone who was part of it now be the one that's going to fix it? >> people who would defend tim sloan would point out he was mostly on the other side of the bank doing commercial lending. on the wholesale side he was only president and coo since november of 2015. his oversight capacity was limited to just the past year or so, when most of the wrongdoing happened prior to that

mr. stumpf knew about. getting fired a year and it gets up to the board and they don't take aggressive action. if you had people stealing out of the till a year, that would be stopped. but from customers, they let the system continue because they were making money off of it. i think it's appropriate congress call them out. >> i agree. i think that's your job. but i was just wondering if congress people should give money back? >> i don't think so. >> do you think the federal government should make more responsibility for -- >> if you watch my clip, do you think that wells fargo contributing to my campaign has done anything for me -- >> no. that's not the accusation. i'm just saying it's money -- >> i'm a wells fargo customer. i was there when they were nor west in minnesota. >> did you have any extra credit cards? >> i'm not sure of any other accounts. >> the accusation is not of being . i'm just wondering if there's a line in the sand where you draw where you say you're accusing this company of basically be

mr. stumpf respectively. what he is earning from sitting on the board of the two companies.ichael, alabama, a republican. go ahead in remaining minutes. what is on your mind? caller: i want to speak on the serious sex allegations. like last night you had fox news bringing up bill clinton's three women and it is like it is just crazy and i fear these women are going to play political football and be scared to come forward if something does happen because they're just like -- is the media taking them serious or playing them for political points? it is a serious issue. trump is like off in conspiracy theory and all this crazy stuff and says he didn't do it and i think it is dangerous and i think he is dangerous. i'm a republican and just he's not going to win the election. host: michael, what are you going to do? how are you going to vote? caller: i probably won't, i may vote down ticket. i'm just, you know, it is a serious issue and i just, you know, hope these women if something did happen, they do come forward no matter what or whatever. i just, you know, pray for them. host

mr. stumpf's did. >> we were disappointed that the hearings turned into a situation in which there were morepeeches given than questions asked. we felt like there was more answers we could have provided. those hearings are over with and we are moving on. >> one wonders whether that particular comment might anger lawmakers further. either way mr. sloan will be hoping that comments this is the beginning of the end of the crisis. wells reports tomorrow 8:00 a.m. eastern time. >> it was no secret that tim sloan would succeed john stumpf. the only question was whether he would get both chair and ceo roles. of course, he did not get that. >> i'd say the speed of this was a big surprise. he became president and ceo and more recently was freed from his role as head of wholesale banking. all he had was overseeing role. when those changes were announced on monday or tuesday he said he was looking forward to reporting earnings. this was a big surprise. the chairman change is significant. some analysts reporting more than the ceo change. now the bank has independent chairman and independent vice chairma

mr. stumpf conceivably can remain at the helm of the bank. but when you hear jamie dimon say we shouldn't be all tarred with the same brush, certainly you agree with it to a certain extent. i work with people in the banking industry all the time, any of them are my sources and i work with them. but when you go through the last few years, whether it's the libor scandal or fx scandals or money laundering at some of the banks that have been charged and back to the crisis itself and all of the different practices that took place, you do have to wonder when it's finally just going to stop. >> well, look, i think we spent a lot of time with deutsche bank and started realizing it could be a deal with the justice department any day. meantime the british banks, have you looked at those stocks? these are the banks maybe we should be talking about. when you see the pound this low and you get a sense that lloyd's -- if you look at that, you want to talk about a market cap that's shrinking. barclays, royal bank, these companies could all end up being ward

mr. stumpf is leaving with all of his ill gotten millions, that's still not real accountability.oo, according to ek wi lar $135 million in total, about 20 of that is pension, but the real bulk $110 million in stock. let's not forget he's built that up over 34 years at the company in both awards and purchases of his own. no now, either way i spoke exclusively last night to the new ceo tim sloan and he confirmed there have been additional political requests by both sides of congress. but he hopes any po tetential hearings he faces himself will go more smoothly. >> we were disappointed that the hearings turned into a situation in which there were more speeches given than questions asked because we felt like there was more answers that we could have provided. but, you know, those hearings are over with and we're moving on. >> now, the focus now turns tomorrow morning 8:00 a.m. eastern time wells fargo reporting their results. and whether on the conference call mr. sloan can placate the desire that still exists for more accountability, carl. >> wilfred frost, wilf, thanks so much. of

mr. stumpf came to himself. he was the one who brought this to the board. he was not fired. he was not pushed out. that is something he is really saying in terms of the bank moving on. but in terms of all of those sort of deliberations, why now, all we can think about is what happened with congress. maybe he did not want to get on a call tomorrow and say, i am going to try to move forward. maybe he did not want to take questions. we do not know yet. andd: that is laura kelly, the banking world is reeling after news of the shakeup at wells fargo. talk about what happened and what it means. if intervening editor at bloomberg tv has written extensively on the banking industry. and on the phone from london, chris wheeler, atlantic equities. we have this earnings call tomorrow for wells fargo. what would you ask on that call? chris: good morning, first of all. the thing i would ask first of the importantg on thing from the investor perspective. what do you think this is going to do to your earnings profile over the two years? one has to assume that the level of cross-selling that

mr. stumpf's departure and whether or not it was a sad or proud day for him personally. >> it's a sad momentause john stumpf is retiring in a situation that i think he would have never imagined. and he has done such a great job in managing this company notwithstanding some of the things that i think he wish head would have done differently. having said that, i feel a great responsibility and i'm looking forward to being the ceo of this company. we have an amazing 164-year history. and we are not going to allow the last five weeks to define the success -- the future success of a very well regarded and well known 164-year-old company. >> focus of course now turns to the company's earnings. they're due at 8:00 a.m. eastern time tomorrow morning. >> delta air lines just releasing quarter results. phil lebeau has got the numbers and a special guest. phil? >> thank you, andrew. we're going to talk with ed bastian in just a second. let me run down the numbers first. $1.70 per share versus the estimate of $1.65. $10.4 billion. let's bring in the ceo of delta for an exclusive look at not only the thi

mr. clean, that's what stumpf was called, eric, how do you think d.c. is going to react? ou expect washington to weigh in on this? >> let me tell you, he is mr. clean, he cleaned the pockets of consumers. that's mr. clean all right. and how do you think washington is going to react? i think they're going to be happy about it. they're going to show that maybe perhaps they made a difference, they helped to tilt it. i've been speaking out against him for some time. i think many other people. and kurt's right, the media actually did their job, they really. did they pointed things out early on, and that's the job of the media to protect the public, to educate the public, and frankly, i think they deserve a lot of credit. liz: kurt, what happened at wells fargo feels different from the subprime mortgage crisis who the villains were, the 1% fat cat wall street bankers that orchestrated the financial crisis with the help of government, if but now it feels like these are the middle to low-level workers, $12 an hour maybe they were getting, who were pressured by the upper ranks to d

mr. str stumpf and wells fargo. we had her on yesterday, she was circumspect on whether she would or would not look at what's going on there. she played a lawyerly role there. clearly ms. warren wants the okay to go aggressively after wells fargo. >> she does not think the s.e.c. has been aggressive enough across the board, particularly on this political spending issue. that's one that will resonate with democratic voters right now who are frustrated with all the secret money out there in politics. they would like to force corporations to have to say what they're doing with their money in terms of politics. they think that's only fair. that's an issue that elizabeth warren thinks she has traction on. that's why she is sending this letter. >> you said her term ends technically there 2019. i imagine if donald trump were to win, she would go much sooner than that you think in a clinton administration she goes much sooner than that, too? basically when the president turns over, it turns over. >> elizabeth warren saying

(john stumpf / wells fargo ceo (thursday)"there is no question mr. chairman, we should have done more sooner. " well's fargo's c-e-o has now ?twice? apologized to congress for the problems guitron first flagged years ago. ago.but yesenia guitron paid a price. she says she was out of rk fired. she now works as a property manager but has never returned to banking.john blackstone ... saint helena california. 3 another day of losses on wall street. the dow fell about 85. the nasdaq lost about eleven. and the s an p also down nearly eleven points on the day. considering that more than 50 lives are lost each year in wisconsin to fire..it seems simple enough--to have a smoke detector--but many homes don't have any that work or not enoug. will be supplying fire departments across the state with alarms they can install in neighborhoods most in need. it's called the wisconsin smoke alarm and fire education coaltion or wis-safe.earlier today in pewaukee, they announced of the goal of reducing fire fatatlitiesy by 25 percent. 3 poverty is a big risk for fires. w

mr. sloane is now getting, i would say, about 1/3 of john stumpf's duties if you look at latest corporatens, john stumpf -- liz: none of his pay. >> well you don't know that. here's the thing, i think after the election -- liz: making me do this, start paying me. >> after the new year we point out it is probably a good shot that mr. sloan gets the job. that is usually what happens. let's go to twitter because we are hearing -- now we should point out, we should say sources and should be unconfirmed this, and twitter is getting a little ride out of this thing, we should put up, unconfirmed, there is a, a lot of speculation out there that prince, as you know twitter was down 11% yesterday. we took it up a little bit on your show when we said there was some bankers were talking about still some interest from sales force and others if the price is right. so the stock popped on that. came back a little bit. now the stock is up today. kind of a relief rally. part of it is this. this is pure speculation. we should say it is unconfirmed, he is considering basically increasing his, he has got a st