On September 20, 2016, John Stumpf, the C.E.O. of Wells Fargo, appeared before the Senate Banking Committee to defend his company’s role in one of the biggest financial scandals in recent memory. Wells Fargo employees, who were under pressure from senior management to meet overly aggressive sales targets, had opened more than two million bank and credit-card accounts for customers who had never asked for them.
The tone of the questioning was initially courteous. Then Elizabeth Warren spoke. Peering over her glasses, she launched into a series of questions so scathing that the Senate chamber fell silent. “Since this massive, years-long scam came to light, you have said repeatedly, ‘I am accountable,’ ” Warren said to Stumpf. “But what have you actually done to hold yourself accountable? Have you resigned as C.E.O. or chairman of Wells Fargo? . . . Have you returned one nickel of the millions of dollars that you were paid while this scam was going on?”
Warren pressed Stumpf on whether he had fired any senior executives over the revelations (he hadn’t); paraphrased his comments, on an earnings call, about how lucrative the sales-quota strategy had been; and asked him to tell the audience how much money he had made personally as the company’s share price shot up during the years of the fraud. When Stumpf declined to answer, Warren supplied the number: two hundred million dollars.
“A cashier who steals a handful of twenties is held accountable, but Wall Street executives almost never hold themselves accountable,” Warren said. “Not now, and not in 2008, when they crushed the worldwide economy. The only way that Wall Street will change is if executives face jail time when they preside over massive frauds.” She declared that Stumpf should be criminally investigated, accusing him of “gutless leadership.”
A video of the exchange, posted on YouTube, became a sensation. One news site called it an “epic takedown”; another described Warren “verbally destroying” Stumpf. In May, when I met Warren on the campaign trail, she told me that she was “furious” as she went into the hearing. “He was building a business model for a huge financial institution that was built on knowingly cheating people,” she said. “I figured that he deserved every punch he got.”
