IT WILL ALL GET DONE.
GREAT POTENTIAL FOR THE UNITED
STATES.
IN TERMS OF OPTIMISM THERE.
REBUILDING WELLS FARGO, MORE
THAN A YEAR AND-A-HALF OF
SCANDALS, INCLUDING FAKE
ACCOUNTS, UNFAIR MORTGAGE FEES,
CHARGING CUSTOMERS FOR NEEDLESS
INSURANCE.
THERE WAS A RECORD FUND LEVIED
ON WELLS.
NOW THERE ARE QUESTIONS ABOUT
THE BANK'S 401-K PRACTICES.
MARIA BARTIROMO SAT DOWN FOR AN
EXCLUSIVE INTERVIEW WITH THE CEO
OF WELLS FARGO, THE PRESIDENT
THERE AS WELL, TIM SLOAN, TO
FIND OUT WHAT HE'S DOING TO
CHANGE THE CULTURE AT THE
NATION'S THIRD LARGEST BANK.
>> THERE HAS BEEN A LOT GOING ON
SINCE I STEPPED INTO THE ROLE
ABOUT 18 MONTHS AGO.
ONE OF THE THINGS THAT I SAID TO
ALL OF OUR STAKE HOLDERS IS THAT
-- STAKEHOLDERS IS WE NEED TO
REBUILD OUR REPUTATION WITH ALL
OF THEM AND FIRST AND FOREMOST
IT WAS WITH TEAM MEMBERS AND
CUSTOMERS AND LOOKING AT ALL OF
OUR POLICIES AND PRACTICES TO
MAKE SURE WE'RE DOING THE RIGHT
THING WHICH IS WHAT WE'RE IN THE
MIDST OF DOING.
SOME OF THE ITEMS YOU MENTIONED,
ALL OF THEM WERE ITEMS THAT WE
FOUND, WE RAISED OUR HAND, WE
ESCALATED AND WE'RE REMEDIATING.
>> MARIA: WELL, NOT THE FAKE
ACCOUNTS.
>> WHERE WE ARE IN TERMS OF THE
ACCOUNTS, THE RETAIL ACCOUNTS
THAT WE SOLD TO CUSTOMERS, MAYBE
THEY DIDN'T NEED, WE'RE IN THE
MIDST OF REMEDIATION.
WE REACHED OUT TO OVER
120 MILLION DIFFERENT CUSTOMERS
TO SAY, HEY, IF YOU HAVE
AN ISSUE WITH THE WELLS FARGO
ACCOUNT, COME IN AND SEE US.
AND WE'RE ALMOST ALL THE WAY
THROUGH THAT PROCESS.
>> MARIA: YOU HAVE DISMISSED
PEOPLE, YOU HAVE HAD PEOPLE
LEAVE THE COMPANY, YOU HAVE PUT
A NEW SLATE OF BOARD OF
DIRECTORS IN PLACE.
YOU'VE MADE SOME CHANGES.
BUT THERE'S REAL REPUTATIONAL
RISK AND THERE'S RISK IN TERMS
OF PEOPLE TRUSTING THE BANK
AGAIN.
HOW ARE YOU GOING TO GET PEOPLE
TO TRUST WELLS FARGO AGAIN?
CONVINCE THEM THAT THE BANK HAS
INTEGRITY AND THESE THINGS WERE
ONE-OFFS?
>> WELL, THE FACT OF THE MATTER
IS PEOPLE TRUST US EVERY DAY.
WE HAVE OVER 70 MILLION
CUSTOMERS.
OUR BUSINESS IS GROWING.
THE RETAIL BANKING BUSINESS IS
GROWING.
PRODUCTS AND SERVICES ARE
GROWING.
THE LOYALTY SCORE THAT'S WE HAVE
FROM OUR CUSTOMERS ARE ALL
IMPROVING.
SO THERE'S A LOT OF GOOD THAT'S
GOING ON AT THE COMPANY.
BUT YOU'RE ABSOLUTELY RIGHT, WE
NEED TO REBUILD TRUST WITH OUR
STAKEHOLDERS.
HOW DO WE DO THAT?
WE MAKE SURE IF THERE'S ANYTHING
WE DID THAT WAS IMPROPER WITH A
CUSTOMER, THAT WE MAKE IT RIGHT
BY THEM, THAT WE FIX ANYTHING
THAT NEEDS TO BE FIXED AT THE
COMPANY AND THEN WE FOCUS ON
GOING FORWARD AND THAT'S
BUILDING A BETTER WELLS FARGO
AND WE'RE DOING THAT EVERY DAY.
>> MARIA: AT THE SAME TIME,
THOUGH, YOU'VE GOT TO CONVINCE
CLIENTS NOT TO BOLT.
AS I HEAR IT OR I UNDERSTAND IT
FROM VARIOUS CUSTOMERS AND
ANALYSTS, SMALL BUSINESS IS
LEAVING, CUSTOMERS ARE CLOSING
ACCOUNTS, THEY DON'T TRUST YOU
ANYMORE.
>> THAT'S NOT TRUE.
IF OUR RETAIL CHECKING ACCOUNTS
WERE NOT GROWING, THEN THAT
WOULD BE TRUE, BUT THEY ARE
GROWING.
IF OUR RETAIL DEPOSIT BASE
WASN'T GROWING, THAT WOULD BE
TRUE, BUT IT'S ACTUALLY GROWING.
COMMERCIAL LOANS GREW IN THE
FIRST QUARTER.
OUR OVERALL BUSINESS IS GROWING.
THERE'S NO QUESTION THAT WE HAVE
SOME WORK TO DO WITH SOME OF OUR
CUSTOMERS BUT WHEN I TALK TO OUR
CUSTOMERS AND I DO THAT EVERY
DAY, THEY LIKE THE RELATIONSHIP
THAT WE HAVE WITH WELLS FARGO.
WE NEED TO CONTINUE TO ASK MORE
OF OUR PEOPLE AND ASK MORE OF
OUR COMPANY TO BE ABLE TO
DELIVER THE PRODUCTS AND
SERVICES THAT OUR CUSTOMERS
WANT.
>> MARIA: TIM, PERHAPS EVEN
BIGGER THAN ALL OF THE ABOVE AND
THE MISCONDUCT THAT WE'RE
TALKING ABOUT IS THE FEDERAL
RESERVE ORDERING THE BANK NOT TO
GROW ANYMORE.
YOU CANNOT INCREASE THE SIZE OF
YOUR BALANCE SHEET BEYOND
$1.95 TRILLION.
SO WHAT DO YOU DO?
IS THAT A DEATH MEL THAT WELLS
FARGO IS NOT ALLOWED TO GROW
ANYMORE?
>> OF COURSE NOT WHAVMENT THE
FEDERAL RESERVE SAID IS WE CAN'T
GROW OUR BALANCE SHEET.
IT'S
TH'S
THES
THE UNDERLYING COMPANY IS
GROWING, AS I MENTIONED.
WHEN YOU LOOK AT IT, ALMOST
EVERY STATISTIC IN TERMS OF THE
UNDERLYING BUSINESS, YOU SAW
GROWTH IN THE FIRST QUARTER AND
SO WE'RE PROUD OF THAT.
SO WE JUST NEED TO BALANCE,
BEING ABLE TO OPERATE UNDERNEATH
THE ASSET CAP THAT WE HAVE WITH
THE FED AND ALSO SERVICE OUR
CUSTOMERS.
WE'RE ABSOLUTELY OPEN FOR
BUSINESS.
WHAT THE REGULATORS WANT FOR US
AND WHAT WE WANT ARE THE SAME
THING.
WE WANT TO HAVE THE BEST RISK
MANAGEMENT IN THE INDUSTRY AND
WE'RE GOING TO DO THAT.
I MADE THAT ONE OF OUR SIX
ASPIRATIONAL GOALS A YEAR AGO.
>> MARIA: WHAT CAN YOU TELL US
ABOUT THE 401-K INQUIRY.
WERE YOUR PEOPLE PUSHING PEOPLE
WITH 401-KS INTO MORE EXPENSIVE
FUNDS, INTO FUNDS THAT OBVIOUSLY
GIVE THE BANK MORE FEES?
>> I CAN'T SAY A WHOLE LOT MORE
ON THAT.
WE DISCLOSED THAT IN OUR 10-K A
MONTH OR SO AGO.
IT'S NOT REALLY NEW NEWS.
WE'RE IN THE MIDST OF A REVIEW
OF THAT.
IF IT TURNS OUT THAT ANY
CUSTOMERS WERE MOVED INTO AN
ACCOUNT THAT WAS INAPPROPRIATE,
WE'LL MAKE IT RIGHT BY THEN.
>> MARIA: YOU'RE STILL HAVING
ACTIVE INVESTIGATIONS WITHIN THE
COMPANY OF ALL OF THESE
MISDEEDS, THE FAKE ACCOUNTS, THE
MORTGAGES?
>> ALL THAT'S DONE.
WE DISCOVERED THOSE OPERATIONAL
BREAKDOWN THAT'S WE HAD,
SHOULDN'T HAVE HAPPENED,
ABSOLUTELY AGREE WITH THAT.
WE CHANGED OUR POLICIES, OUR
PRACTICES.
WE'VE COMPLETELY REORGANIZED OUR
AUTO BUSINESS.
WE HAVE A NEW LEADER WHO IS
MOVING THAT BUSINESS IN THE
RIGHT DIRECTION.
SO THERE'S A LOT OF CHANGE
THAT'S GOING ON.
BUT IN TERMS OF OUR UNDERLYING