Senators push Wells Fargo CEO on pay clawbacks after bogus accounts(Reuters) - U.S. Senate lawmakers excoriated Wells Fargo & Co’s chief on Tuesday for his oversight of the bank as it opened 2 million bogus customer accounts, potentially laying the groundwork for new rules and reviving questions of whether banks are “too big to fail.”  Chief Executive Officer John Stumpf told the Senate Banking Committee on Tuesday that customers who had bogus accounts opened in their name will be made whole and compensated for any damage to their credit rating, but some Democratic senators called for his resignation. Under fire, Stumpf said he has told his managers to do “whatever it takes” to make customers whole, refunding fees or compensating them for damage to their credit ratings. But he stood behind the former executive who ran the unit that oversaw many of the practices, and at times downplayed the scope of the affair. In answer to a question, he declined to commit to setting aside mandatory arbitration agreements that prohibit clients from suing Wells Fargo. The Consumer Finance Protection Bureau has proposed a ban on such clauses that prohibit class-action lawsuits. Earlier this month, the lender agreed to pay $190 million in penalties and customer payouts to settle the case involving the creation of credit, savings and other accounts without customers’ knowledge. About $5 million will directly go to customers, many of whom might have paid a small fee on the unwanted accounts. The revelations are a severe hit to Wells Fargo’s reputation. During the financial crisis, the bank trumpeted itself as conservative, in contrast to its rivals.  Besides potential criminal charges against the company and its executives, Wells Fargo may face pressure from shareholders to change its practices on executive pay and governance.  The scandal also renewed debate over whether U.S. banks are “too big to fail” and need closer government oversight to prevent a massive collapse.  Lawmakers could use the fraud settlement as a springboard for new rules on executive pay, including clawbacks of compensation, and limits on forced arbitration. Wells Fargo has said its board will assess whether to cancel or claw back any incentive compensation paid to a now-retired executive at the center of the scandal, Carrie Tolstedt.  Democratic Senators Jeff Merkley of Oregon and Elizabeth Warren of Massachusetts called for Stumpf to resign, with Warren saying Stumpf should give back his salary and be criminally investigated.  “You should resign. You should give back the money you took while this scam was going on, and you should be criminally investigated,” Warren said.  The bank’s board of directors is examining what action it should take against company executives, Stumpf told the committee.         “I accept full responsibility for all unethical sales practices,” Stumpf said, adding later, “I apologize to all of the American people and our customers, and I will make it right.”  Lawmakers said the phony bank accounts might have hurt customer credit ratings, increased the cost of a mortgage or car loan. New credit card applications and consumer borrowing trends can weight on an individual’s credit. Wells Fargo has acknowledged bank employees “inappropriately opened” the customer accounts and that about 5,300 employees were fired over five years. Former bank employees say they were under intense pressure to add accounts for each customer.     Abuses were found as early as 2011, Stumpf said, but bank executives only realized the scale of the problem early last year. At that time, Stumpf said, managers came to recognize how a pattern of creating phony accounts could be used to boost unwarranted fees. “It never dawned on us that there could be a cycle,” the CEO said. “It just sort of begs the issue of where was management,” said Senator Sherrod Brown of Ohio, the senior Democrat on the panel. Brown said employees were caught “forging signatures, and stealing identities, Social Security numbers, and customers’ hard-earned cash, so as to hang on to their low-paying jobs and make money for the high-paying executives at Wells Fargo.” Thomas Curry, the Comptroller of the Currency, said the agency is considering action against individual Wells Fargo executives who may have violated laws or regulations.  The U.S. Attorney’s Offices in Manhattan and in San Francisco are investigating Wells Fargo, a person familiar with the matter said last week.  While Democratic lawmakers were the most outspoken in their attacks, Republicans also grilled Stumpf. Louisiana Senator David Vitter pressed the CEO on how  customer fraud could persist for years and thousands of employees could be fired before the head of the bank got involved. “Why isn’t this crystal clear proof that an entity as big as Wells is not only too big to fail but it’s too big to manage and too big to regulate?” Vitter asked. Stumpf said the widespread abuse was “a problem of focus and not of size.” Stumpf appeared before the congressional panel with a bandaged right hand. He suffered an injury playing with his grandchildren, according to the bank.  Wells Fargo shares rose 2 percent to $46.94. politicsNews
senators push wells cargo ceo pay drawbacks bogus accounts reuters senate lawmakers excoriated wells cargo co chief tuesday oversight bank opened million bogus customer accounts potentially laying groundwork new rules reviving questions whether banks big chief executive officer john stumps told senate banking committee tuesday customers bogus accounts opened name made whole compensated damage credit rating democratic senators called resignation under fire stumps said told managers whatever takes make customers whole funding fees compensating damage credit ratings but stood behind former executive ran unit oversaw many practices times downplayed scope affair in answer question declined commit setting aside mandatory arbitration agreements prohibit clients suing wells cargo the consumer finance protection bureau proposed ban clauses prohibit lawsuits earlier month lender agreed pay million penalties customer layouts settle case involving creation credit savings accounts without customers knowledge about million directly go customers many might paid small fee unwanted accounts the revelations severe hit wells cargo reputation during financial crisis bank trumpeter conservative contrast rivals besides potential criminal charges company executives wells cargo may face pressure shareholders change practices executive pay governance the scandal also renewed debate whether banks big fail need closer government oversight prevent massive collapse lawmakers could use fraud settlement springboard new rules executive pay including drawbacks compensation limits forced arbitration wells cargo said board assess whether cancel claw back incentive compensation paid executive center scandal carrie tolstedt democratic senators jeff merely oregon elizabeth warren massachusetts called stumps resign warren saying stumps give back salary criminally investigated you resign you give back money took scam going criminally investigated warren said the bank board directors examining action take company executives stumps told committee i accept full responsibility unethical sales practices stumps said adding later i apologize american people customers i make lawmakers said phony bank accounts might hurt customer credit ratings increased cost mortgage car loan new credit card applications consumer borrowing trends weight individual credit wells cargo acknowledged bank employees inappropriately opened customer accounts employees fired five years former bank employees say intense pressure add accounts customer abuses found early stumps said bank executives realized scale problem early last year at time stumps said managers came recognize pattern creating phony accounts could used boost unwarranted fees it never downed us could cycle ceo said it sort begs issue management said senator sherdog brown ohio senior democrat panel brown said employees caught forging signatures stealing identities social security numbers customers cash hang jobs make money executives wells thomas curry comptroller currency said agency considering action individual wells cargo executives may violated laws regulations the attorney offices manhattan san francisco investigating wells cargo person familiar matter said last week while democratic lawmakers outspoken attacks republicans also grilled stumps louisiana senator david bitter pressed ceo customer fraud could persist years thousands employees could fired head bank got involved why crystal clear proof entity big wells big fail big manage big regulate bitter asked stumps said widespread abuse problem focus stumps appeared congressional panel managed right hand he suffered injury playing grandchildren according bank wells cargo shares rose percent politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Senators push Wells Fargo CEO on pay clawbacks after bogus accounts(Reuters) - U.S. Senate lawmakers excoriated Wells Fargo & Co’s chief on Tuesday for his oversight of the bank as it opened 2 million bogus customer accounts, potentially laying the groundwork for new rules and reviving questions of whether banks are “too big to fail.”  Chief Executive Officer John Stumpf told the Senate Banking Committee on Tuesday that customers who had bogus accounts opened in their name will be made whole and compensated for any damage to their credit rating, but some Democratic senators called for his resignation. Under fire, Stumpf said he has told his managers to do “whatever it takes” to make customers whole, refunding fees or compensating them for damage to their credit ratings. But he stood behind the former executive who ran the unit that oversaw many of the practices, and at times downplayed the scope of the affair. In answer to a question, he declined to commit to setting aside mandatory arbitration agreements that prohibit clients from suing Wells Fargo. The Consumer Finance Protection Bureau has proposed a ban on such clauses that prohibit class-action lawsuits. Earlier this month, the lender agreed to pay $190 million in penalties and customer payouts to settle the case involving the creation of credit, savings and other accounts without customers’ knowledge. About $5 million will directly go to customers, many of whom might have paid a small fee on the unwanted accounts. The revelations are a severe hit to Wells Fargo’s reputation. During the financial crisis, the bank trumpeted itself as conservative, in contrast to its rivals.  Besides potential criminal charges against the company and its executives, Wells Fargo may face pressure from shareholders to change its practices on executive pay and governance.  The scandal also renewed debate over whether U.S. banks are “too big to fail” and need closer government oversight to prevent a massive collapse.  Lawmakers could use the fraud settlement as a springboard for new rules on executive pay, including clawbacks of compensation, and limits on forced arbitration. Wells Fargo has said its board will assess whether to cancel or claw back any incentive compensation paid to a now-retired executive at the center of the scandal, Carrie Tolstedt.  Democratic Senators Jeff Merkley of Oregon and Elizabeth Warren of Massachusetts called for Stumpf to resign, with Warren saying Stumpf should give back his salary and be criminally investigated.  “You should resign. You should give back the money you took while this scam was going on, and you should be criminally investigated,” Warren said.  The bank’s board of directors is examining what action it should take against company executives, Stumpf told the committee.         “I accept full responsibility for all unethical sales practices,” Stumpf said, adding later, “I apologize to all of the American people and our customers, and I will make it right.”  Lawmakers said the phony bank accounts might have hurt customer credit ratings, increased the cost of a mortgage or car loan. New credit card applications and consumer borrowing trends can weight on an individual’s credit. Wells Fargo has acknowledged bank employees “inappropriately opened” the customer accounts and that about 5,300 employees were fired over five years. Former bank employees say they were under intense pressure to add accounts for each customer.     Abuses were found as early as 2011, Stumpf said, but bank executives only realized the scale of the problem early last year. At that time, Stumpf said, managers came to recognize how a pattern of creating phony accounts could be used to boost unwarranted fees. “It never dawned on us that there could be a cycle,” the CEO said. “It just sort of begs the issue of where was management,” said Senator Sherrod Brown of Ohio, the senior Democrat on the panel. Brown said employees were caught “forging signatures, and stealing identities, Social Security numbers, and customers’ hard-earned cash, so as to hang on to their low-paying jobs and make money for the high-paying executives at Wells Fargo.” Thomas Curry, the Comptroller of the Currency, said the agency is considering action against individual Wells Fargo executives who may have violated laws or regulations.  The U.S. Attorney’s Offices in Manhattan and in San Francisco are investigating Wells Fargo, a person familiar with the matter said last week.  While Democratic lawmakers were the most outspoken in their attacks, Republicans also grilled Stumpf. Louisiana Senator David Vitter pressed the CEO on how  customer fraud could persist for years and thousands of employees could be fired before the head of the bank got involved. “Why isn’t this crystal clear proof that an entity as big as Wells is not only too big to fail but it’s too big to manage and too big to regulate?” Vitter asked. Stumpf said the widespread abuse was “a problem of focus and not of size.” Stumpf appeared before the congressional panel with a bandaged right hand. He suffered an injury playing with his grandchildren, according to the bank.  Wells Fargo shares rose 2 percent to $46.94. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: senators push wells cargo ceo pay drawbacks bogus accounts reuters senate lawmakers excoriated wells cargo co chief tuesday oversight bank opened million bogus customer accounts potentially laying groundwork new rules reviving questions whether banks big chief executive officer john stumps told senate banking committee tuesday customers bogus accounts opened name made whole compensated damage credit rating democratic senators called resignation under fire stumps said told managers whatever takes make customers whole funding fees compensating damage credit ratings but stood behind former executive ran unit oversaw many practices times downplayed scope affair in answer question declined commit setting aside mandatory arbitration agreements prohibit clients suing wells cargo the consumer finance protection bureau proposed ban clauses prohibit lawsuits earlier month lender agreed pay million penalties customer layouts settle case involving creation credit savings accounts without customers knowledge about million directly go customers many might paid small fee unwanted accounts the revelations severe hit wells cargo reputation during financial crisis bank trumpeter conservative contrast rivals besides potential criminal charges company executives wells cargo may face pressure shareholders change practices executive pay governance the scandal also renewed debate whether banks big fail need closer government oversight prevent massive collapse lawmakers could use fraud settlement springboard new rules executive pay including drawbacks compensation limits forced arbitration wells cargo said board assess whether cancel claw back incentive compensation paid executive center scandal carrie tolstedt democratic senators jeff merely oregon elizabeth warren massachusetts called stumps resign warren saying stumps give back salary criminally investigated you resign you give back money took scam going criminally investigated warren said the bank board directors examining action take company executives stumps told committee i accept full responsibility unethical sales practices stumps said adding later i apologize american people customers i make lawmakers said phony bank accounts might hurt customer credit ratings increased cost mortgage car loan new credit card applications consumer borrowing trends weight individual credit wells cargo acknowledged bank employees inappropriately opened customer accounts employees fired five years former bank employees say intense pressure add accounts customer abuses found early stumps said bank executives realized scale problem early last year at time stumps said managers came recognize pattern creating phony accounts could used boost unwarranted fees it never downed us could cycle ceo said it sort begs issue management said senator sherdog brown ohio senior democrat panel brown said employees caught forging signatures stealing identities social security numbers customers cash hang jobs make money executives wells thomas curry comptroller currency said agency considering action individual wells cargo executives may violated laws regulations the attorney offices manhattan san francisco investigating wells cargo person familiar matter said last week while democratic lawmakers outspoken attacks republicans also grilled stumps louisiana senator david bitter pressed ceo customer fraud could persist years thousands employees could fired head bank got involved why crystal clear proof entity big wells big fail big manage big regulate bitter asked stumps said widespread abuse problem focus stumps appeared congressional panel managed right hand he suffered injury playing grandchildren according bank wells cargo shares rose percent politicsnews