This story appeared in Bank Digest.
Republican staff on the House Financial Services Committee have released an interim report regarding the Wells Fargo fraudulent accounts scandal, in which employees of Wells Fargo & Company "engaged in the practice of defrauding customers by opening millions of unneeded, and at times, unauthorized bank accounts," according to the report.
The report stated that after the September 2016 public announcement of Wells Fargo's settlements with the Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, and L.A. City Attorney, the committee launched an investigation into: "(1) how and why Wells Fargo allowed these fraudulent activities to occur at a disturbing scale across the Bank since at least May 2001; and (2) whether or not federal financial regulators were effective in detecting and remedying Wells Fargo's fraudulent branch sale practices."
Republican staff stated that while Wells Fargo and the OCC have cooperated with the committee's investigation, the CFPB has not. As a result of the CFPB's failure to comply with the committee's subpoena compelling the production of records, the committee's investigation is at an impasse, according to the report. Majority staff recommended issuing deposition subpoenas to CFPB employees to investigate Director Richard Cordray's default of the committee's subpoena and prepare, if necessary, to initiate contempt proceedings against him unless the bureau produces all relevant records.