Proving yet again that both sides of the aisle can unite if the question involves Wells Fargo, the House FinServ Committee today excoriated CEO John Stumpf. Questioning from Republicans and Democrats went into the details of the cross-selling case, but drew from it without significant partisan differences to argue that the company is too big to manage. Ranking Member Waters (D-CA) called for it to be broken up, and Republicans generally loathe to agree with her and other Democrats also echoed this sentiment if not the specific demand. Questioning without regard to party also focused on the extent to which cross-selling is problematic across all large banks and how this can best be prevented. This report analyzes today’s session, focusing as we did in our Senate Banking coverage (see Client Report REFORM127) on issues with policy consequence beyond the individual issues for Wells Fargo.
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