Wells Fargo& Co. CEO John Stumpf faced congressional allegations ofinsider trading and failure to disclose material events as the House FinancialServices Committee grilled the executive over an unauthorized accounts scandal.
Rep. Carolyn Maloney, D-N.Y., pulled a regulatory filingshowing Stumpf sold $13 million of stock in October 2013, shortly before The Los Angeles Times published aDecember 2013 investigation suggesting an ultra-competitive sales culturecaused employees to falsify accounts.
"It seems that the timing is very, very suspicious andit raises serious questions," Maloney said.
Stumpf denied that he sold the stock because of anythingrelated to sales practices or the unauthorized-accounts scandal.
Several congressmen seized on Wells Fargo's failure todisclose the issue in any regulatory filings, especially after Stumpf said thebank's board of directors had received reports of unauthorized accounts asearly as 2011. Stumpf responded several times that the board of directorsconsidered the facts and circumstances and determined them to be immaterial.
Rep. Sean Duffy, R-Wis., trained his questions on how Stumpfwould define the actions. Pressing Stumpf to admit the scandal amounted totheft, the CEO relented, saying: "In some cases, they did [steal]."