liz: john stumpf, ceo-chairman of wells fargo is retiring. picking it up from here, "making money" with charles payne is next. don't go away. charles: we have breaking news right out of the gate. john stumpf, the much-maligned ceo-chairman of wells fargo is stepping down immediately. the news comes on the heels of the nice of phoney accounts made in customers' names. i'm not sure this resolves the situation.

let's check on shares of wells fargo. they are still higher in the after hours session, although off the highs, up by 1.6% right now on news that john stumpf is retiring from the company, effective immediately. we'll have much more on that story a little bit later on. first let's hit apple, on the longest winning streak since february of last year and our next guest says sell. why? todd gordon of trading analysis.com is at the smart board to break it down. why sell now, todd? >> i don't say sell yet. before we get into the trade, can we first take a look at the nasdaq, get the index behind us and then move into apple coming into earnings next week. if we take a look at the nasdaq, we're looking at a weekly chart here. this is a pattern technicians refer to as a measured move. a weekly chart of the nasdaq. what's happened is we have seen a 17% rally here in early 2016. we set back and right now happen to be in another 17% rally. and that 17% level is acting as resistance up top. so as we go to the next chart, zoom in, stil

of wells fargo and company. mr. stumpf has held a number of senior management positions at wells and its predecessors where he has worked for 34 years. mr. stumpf, would you please rise and raise your right hand. do you solemnly swear or affirm that the testimony you are about to give will be the truth, the whole truth, and nothing but the truth? thank you, please be seated. let the record reflect that the witness has answered in the affirmative. without objection, the witness' written statement will be made part of the record. mr. stumpf, you are now recognized for 5 minutes to give an oral presentation of your testimony. mr. stumpf: chairman hensarling, ranking member waters, members of the committee, thank you for inviting me to be with you today. i'm the chairman and chief executive officer of wells fargo, where i have worked for nearly 35 years. it is my privilege to lead this company which was founded over 164 years ago and played a vital role in the financial history and development of our country. i am deepl

beven duffey the mounting evidences about san francisco hometown bank is shocking it reveals that wells fargo used personal information about their clients to open without their permission and transferred funds as treasurer i'm responsible for keeping the city save and 10 years ago i started the bank an inform program i believe that everyone money is safety in the a banknote held in cash or under a mattress when i learned that protecting people in the city if have basis assess he worked with bans and credit unions to create low-cost accounts without barriers to assess now thousand of san franciscans every year opened their first behind the eight ball through the bank on san francisco and bank that programs in dozens of cities across the country and last year, we annunciations bank think standards for save behind the eight ball with no overdraft fees so after hearing about the actions of wells fargo i met with an executive to find what information and advise to provide to the san franciscans he couldn't give me basic information including how many san franciscans were effected had they been no

beven duffey the mounting evidences about san francisco hometown bank is shocking it reveals that wells fargo used personal information about their clients to open without their permission and transferred funds as treasurer i'm responsible for keeping the city save and 10 years ago i started the bank an inform program i believe that everyone money is safety in the a banknote held in cash or under a mattress when i learned that protecting people in the city if have basis assess he worked with bans and credit unions to create low-cost accounts without barriers to assess now thousand of san franciscans every year opened their first behind the eight ball through the bank on san francisco and bank that programs in dozens of cities across the country and last year, we annunciations bank think standards for save behind the eight ball with no overdraft fees so after hearing about the actions of wells fargo i met with an executive to find what information and advise to provide to the san franciscans he couldn't give me basic information including how many san franciscans were effected had they been no

the bank an san francisco program effect immediately >> (clapping.) >> and we can't wait for wells fargo to help people through this terrible experience that's why the balance the community partners offered free one-on-one coupling for anyone effected started day they can call 9006006 and speak to a qualified council to run their credit report and found out what to do next we want to thank balance for stepping up their phone call will be on the website just to be clear this is a free serve service and anyone will semi you anyone that's why balance is our partner in the program and i give you my word they'll be trusted with our financial information next week i'm headed to washington, d.c. to talk with the powerful coalition at the financial bureau and with members of the california delegation and i'm calling on my all my colleagues to stand request bank on the other hand, on san francisco police commission we've been the leader in the nation and continue to stand up against financial institutions that breach our trust there are many unanswered questions he want san franciscans to know we

i look at you, i look at wells fargo. i know it is a big organization. 268,000 employees, to a 68,000 jobs. thank you for that, sir. you know what? i do not know if management knows the difference between right and wrong. i tell you who does, people who either percent in maine. i represent the most honest, hard-working people you can ever find anywhere. they know the difference between right and wrong. one thing i want to go out with right now, i do not know where this is going, but i will not support in any way shape or form, any kind of bail out using taxpayer money for wells fargo. you have to get through me and a lot of other people on this committee. now, here is what i worry about. i do not worry about wells fargo. you have 260,000 employees. how many attorneys? mr. stumpf: i do not have the number. >> you have more than 10, 1000? i do not worry about you. you are goingway to make your way through this. you know who i worry about? or 31 community banks, local banks in the district i represent. 31 community banks, 50

but the focus was on wells fargo. scandal over fake accounts pay lip to erik schatzker with the latest on the call. tim sloan, the new ceo, is talking right now about why the former ceo gave up the job. he says because stumpf was a distraction. what we want to know is how much of a distraction. and how much of an impact it will have on wells fargo business going forward. here's what i can tell you right fargo made slides, presentation slides available ahead of the conference call. this scandal, the think -- the fake account scandal broke in the beginning. account openings and account applications were down in the month of september. consumer checking account down 25% year over year. and credit card applications down 20%. wells fargo is in drawing a straight line between the scandal and the sack to the. wells fargo has one of the most stable consumer banking franchises in the country, highly unusual. scandal of this nature to see a drop off in customer activity. we want to know about litigation reserves. or the press r

liz: wells fargo. >> please. i don't want to get sued here, the wells fargo scandal into a political talking point. the fact they put pressure on employees, they were forced allegedly to open up fake accounts or accounts in people's names they didn't he no. very bad stuff. she is using this as political battering ram. the hip pock -- hypocrisy comes in two forms. she has not brought in warren buffett's name. you would think she could go to the largest shareholder, very out front in of corporate governance. we put in calls buffett what he is doing vis-a-vis her. whether she has spoken to him. we have got nothing back. this is one of these conflict of interest stories. she can go to the lead shareholder do something about what she is essentially arguing is that but one of the things she is arguing that the people that were ripped off should not have to go to arbitration to get their money back. somehow they should be able to sue wells fargo. liz: just to be clear, arbitration prevents the individual from joining a

. >>> a new era at wells fargo. today was tim sloan's first day as ceo, following the departure of john stumpf who retired in the wake of a scandal. what's next for the embattled bank? wilfred frost reports. >> repor it's been applauded by the community as a necessar conditn for the bank to be ableo move past its recent scandal. is welcomed is the fact that there is a new ceo who, yes, is an insider, but not from the embattled retail part of the bank. also a new board setup that includes independent chairman and independent vice chairman. though pressure remains from lawmaker most notably senator elizabet warren who said, quote, if mr. stumpf is leaving with all of his ill-gotten millions, that's still not real accounta. in an exclusive interview with me last night, the new ceo, tim sloan, confirmed there had been additi request from congre for information. of his own will go more smoothly. >> we disappointed that the hearin turne into a situation where there were more speeches given than questio asked. we felt like

stumf leaves wells fargo a rich man. the bulk of that we know, 110 million comes from his 2.4 million shares. that, of course, has been built up over his 34-year career at the bank. not all of it even a wards. senator elizabeth warren describes that money as ill-gotten gains. in an interview with me yesterday the new ceo confirmed that both houses of congress are still after more from the bank in terms of information but he hopes that if he is to face hearings himself that the performance will go better than mr. stumpf's did. >> we were disappointed that the hearings turned into a situation in which there were more speeches given than questions asked. we felt like there was more answers we could have provided. those hearings are over with and we are moving on. >> one wonders whether that particular comment might anger lawmakers further. either way mr. sloan will be hoping that comments this is the beginning of the end of the crisis. wells reports tomorrow 8:00 a.m. eastern time. >> it was no secret that tim sloan would s

more on wells fargo and where it stands right now right after this. ♪ ♪ >> look at wells fargo. really shocking, isn't it? one of the nation's biggest banks bullying thousands of employees into committing fraud against unsuspecting customers. it is outrageous that eight years after a cowboy culture on wall street wrecked our economy, we are still seeing powerful bankers playing fast and loose with the law. trish: hillary clinton bashing wall street. why not? wells fargo was caught in a massive fraud scandal in which bank employees created two million fake accounts to meet sales targets. that's ripe for some political picking. shares of wells fargo hitting a new 52-week low today after the state of illinois announced it's suspending $30 billion in investment activity with the bank. i want to go to ashley webster who's on the floor of the new york stock exchange for more on this story. be ashley, it keeps going. >> it certainly does with each passing day, trish. it seems like there's someone else piling on. the illinois state treasurer today saying, calling the actionses of wells

long-time ceo john stumpf resigned last week leaving 34- year wells fargo veteran tim sloan in charge. it's a move our state treasurer supports. >> we wanted to make sure that wells fargo puts itself back on the right course. they are making these positive steps. the fact that he decided to resign, i think, is welcome news. you couldn't leave things the way they are. you don't want a major financial institution being stuck in the mud. >> reporter: jose cisneros the elected treasurer of the city and council of san francisco will be speaking this morning to speak about why severing ties with wells fargo is called the socially responsible thing to do and share resources in place to help those affected by bank fraud. that press conference will happening later on this morning at 10:30 from city hall. in san francisco, jackie ward, kpix 5. >>> several women at uc- berkeley have come forward recently with sexual assault claims. and now the university is suspending social events at fraternities and sororities in response. two different women both cal students say they were assaulted at an off

wagon. >> the wells fargo wagon. >> the wells fargo wagon? >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] on a night much like tonight. so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. please tell

wells fargo fallout. john stumpf is gone. the bank chief retiring in the wake of the fake account scandal. >>> china exports plunging more than expected. global market reaction coming up. >>> and earnings on deck with the fed reaffirming consensus for a december hike. it's thursday, october 13, 2016. "worldwide exchange" begins right now. ♪ >>> good morning. warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost alongside courtney reagan. good morning. >> good morning to you. you had quite a busy 24 hours. we have, indeed. we'll get to those specifics in a moment. let's hit the markets. >> it is 5:00 a.m. on the east coast. but first breaking news. the u.s. military launching tomahawk cruise missiles against radar sites in yemen. this comes after incidents earlier in the week when the ship was fired on by a rebel controlled area. >> we'll have headlines on that for you throughout the day. markets, as you can see right now, pretty soft. we're down over 100 points for the dow. 108. the s&p down 14.5. nasdaq down abou

wells fargo, up .2%. on earnings and revenue they beat, at the highlight was the bank set aside money for bad loans. money they will not get back, $800 million. in europe, we had a bank on the move, deutsche bank, raising $4.5 billion in bond sales. bost from an infusion of capital. basis pointy a 300 yield premium on some bonds they sold. retail sales, under armour and of graded.zumi they did surveys and liked what they saw. under armour is making progress. theez got high marks in specialty guys. futures inch higher. jonathan: never heard of it. alix: me either, but we are old. campaign underp pressure. what does he need to do to close the gap between hillary clinton and himself? that is next. this is bloomberg. ♪ >> this is "bloomberg daybreak." coming up, pimco and credit picks. ferro.n: i'm jonathan jp morgan announcing earnings, less than an hour ago, beating estimates. listening in on the call is the citi market reporter, julie hyman. showed an increase in fixed income in the wake of brexit. the c

wells fargo wagon. >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. please tell me it was just phony ban

starting with wells fargo. as you may or may not know, senator warren said last night that stumpf is leaving with all of his ill gotten millions. he should return every nickel he made while this quote scam was going on, and face an investigation by the justice department and sec. are you looking at anything with respect to wells fargo or to mr. stumpf personally and is this an area that the sec ought to be, has business going into? >> well, i can't really comment on all specifically on wells fargo. we're obviously aware of the calls for investigation. we don't as a a matter of policy, i think for probably pretty obvious reasons, say whether and what and whom we're investigating. obviously, we have a major enforcement division. just announced his impressive results for 2016, so, you know, we pay a lot of attention really across market par tis papts. obviously, wells fargo or any other bank as a bank, you know, you have banking regulators as the primary there, but i really can't go beyond that. >> thank you again

wells fargo wagon. >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. plea

wells fargo, j.p. morgan, citi all beating estimates, but it's not all good news from those financials. we'll dig through the reports and hear what the ceos are saying. >>> the samsung saga continues. the company saying billions more in losses are expected. and now some airlines are using fire containment bags for overheating phones. >> like an airsick bag? are you kidding me? where's the tsa? >> and honeywell ceo telling jim on "mad money" last night he was astounded by the market reaction to the company's presentation earlier this month. we'll get the latest. first up, wells fargo out of the first earnings report since the bank's unauthorized account scandal. quarterly results beating the street despite drop in net income. in the company's earnings release new ceo tim sloan says, quote, i'm deeply committed to restoring the trust of all our stakeholder including trust and shareholders community partners, we know that it will take time and a lot of hard work to earn back our reputation, but i'm confid

lauren: wells fargo ceo john dunn stepping down. retiring affect it immediately and you will not be receiving severance pay after wells fargo was fined $185 million over his sales practices. in place of the ninth of accounts about authorization to meet aggressive sales target. he was told about it by the senate aging committee last month. >> i accept full responsibility for all unethical sales practices in our retail banking business. and i am fully committed to fixing this issue, strengthening our culture and taking the necessary action to race your customers trust. lauren: wells fargo chief operating officer affect it immediately. fun and at the bank 29 years. elizabeth warren is reading about it. she says the bank ceo should not appeal to oversee a massive fraud and simply walk away to enjoy his millions in retirement he had an ohio senator sherrod brown says in part this is the statement. we're still waiting for answers as to how wells fargo plans to write a fifth round pick in his customary spirit treated donald trump denies th

>> the wells fargo wagon. >> the wells fargo wagon? >> ♪ the wells fargo wagon is coming down the street ♪ ♪ oh please let it be for me ♪ >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] on a night much like tonight. so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could mee

there could be more trouble for san francisco-based wells fargo. its home city is expected to cut business ties with the bank because of the fake account scandal. jackie ward is live in san francisco with the details. jackie.>>> reporter: the city has already ended some business contracts it had with wells fargo. but supervisors john avalos and jane kim want to take it a step further. so later this morning they will describe what they are calling a resolution to cut business ties with the bank, this after it was revealed that wells fargo employees had created two million fake accounts. supervisor campos explained his disgust on the bank's behavior. >> allow something like this can happen in the united states after everything we have seen with banking institutions tells that you our federal government is not doing enough. >> reporter: the hits will keep coming for wells fargo. california its home state is also the country's largest issuer of municipal bonds but last month the golden state banned wells fargo from underwriting state debt and administe

to have led wells fargo. i have decided it is best for the company that i step aside." stumpf also relinquished his title as bank chairman. chris martinez, cbs news, los angeles. >>> ((brian loftus)) >> wells fargo's chief operating officer tim sloan will take overs ((kirsten joyce)) >>> actor/comedian kevin hart will be returning to the big screen. ((brian loftus)) >> coming up on good day we'll get an inside look of his new movie "what now." ((demetria obilor)) jacky rosen: i'm jacky rosen, and as a computer programmer, i created apps... before they were lled "apps" and i learned there's always a smart solution. as president of my synagogue, we found a smart solution to rising energy costs... to make all of nevada a leader in solar, to improve our schools, and create good jobs. i approved this message because i know we can media as his main marketing tool. and for weeks he's been promoting his new stand up comedy film "what now" which comes out tommorow. rick damigella has a preview. (nat music, drink pouri

fargo wagon? >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. on a night much like tonight. so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and ge

wells fargo wagon. >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wellsgo creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] so bank employees fraudulently creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. please tell me it wa

he says in 2010, osha received a complaint from a woman after she was fired by wells fargo. there she is. the employee claims it was retaliation for raising red flags about the banks' sales practices. after she filed her case, no one inside osha investigated it. she says she is frustrated to learn now what a federal investigator says happened to her complaint. >> it just sat on somebody's desk. at the time, i didn't know. but, you know, i was certainly trusting that everyone did what they were supposed to do. and they didn't. >> reporter: osha says it's now conducting a review of all wells fargo whistleblower cases since 2010 and tonight at 11:00, you'll hear from the former osha investigator. he reveals what he says he was instructed to do when that wells fargo case crossed his desk. janelle? >> thanks, liz. if you have a story call our tip line at 888-996-tips and send an e-mail to the unitality nbcbayarea.com. >>> they are creepy, they are crowley, and hikers say they are everywhere. i'm peggy bunker. and coming up just in time for halloween, we're talking tarantulas afte

wells fargo still has 6000 branches. if you put a free line that would put less pressure on trying to squeeze blood from a stone. jpmorgan the likes of have done a positive job on loading up with new customers on the retail side. emerges that somehow these customers are going to go to elsewhere. in the u.k., deposits are very sticky. what of the others doing to attract that kind of thing to make it happen? these customers are very sticky. if you like, after your show, we will go to the branch downstairs. i have asked them what they think of wells fargo and they say they are not leaving because the branch is convenient. so customers are very sticky. i don't think customers are leaving and on the positive side, wells fargo is bigger than anyone ceo. -- that is a good culture. it is a mistake but we have 5300 employees that were terminated. that is a big mistake. there's something broader than one bad apple in that. how do you route that out? they made some changes belatedly to eliminate product sales goals. cross-selling i

is this a wells fargo thing? guest: wells fargo was the poster child for cross-selling. they were the most aggressive that it. other banks do the same thing. tomorrow, jpmorgan reports and we have some other banks next weekend that's horribly going to be one of the main questions analysts want to know. do you have a problem like this lurking and what do we need to know about it? matt: thank you very much. for more commentary, go to the bloomberg and as mike mentioned, we are going to be talking bank earnings all day tomorrow as we get the big financial kickoff or bank earnings. joe: coming up, nobel prize-winning economists joseph stiglitz on why he thinks the ecb has failed. this is bloomberg. joe: i'm joe weisenthal. "what'd you miss?" a number of developments on brexit today. the plaintiffs are saying article 50 cannot be triggered without a vote in public. earlier today, vonnie quinn discussed the issue with nobel prize-winning economist joseph stiglitz, an economics professor at columbia university and chief economist at the roosevelt institute. as a new book out. t

to have led wells fargo. i have decided it is best for the company that i step aside." stumpf also relinquished his title as bank chairman. chris martinez, cbs news, los angeles. >>> ((dave courvoisier)) >> wells fargo's chief operating officer tim sloan will take over as ceo./// ((weather toss)) <<< (((>>>more clouds today mixed with some sunshine as temperatures warmed up above average again. looking close to 90 degrees with puts us nearly 10 degrees above point as well even for mohave county as instability remains weak right now. ................................ ... .............. temperatures around the region warmed to low 90's for the east part of the valley where we remained the warmest due to low elevation. west side cooler in the high 80's; even cooler for kyle canyon in the 60 by late today. many neighborhoods remained above average for our through the next few days. ..... .............................. ................... regional temps also remained extra warm from mesquite all the way down to lau

wells fargo wagon. is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] on a night much like tonight. customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. please tell me it was just phony bank accounts. >> th

wells fargo wagon. >> ? the wells fargo wagon is coming down the street ? ? oh please let it be for me ? >> seth: what are they so excited about? what's in that wagon, better outfits? [ laughter ] the dog is not that psyched. over the years, wells fargo managed to hold on to the squeaky clean image. that's still the case, right wells fargo? >> one of the country's biggest banks, wells fargo, busted for creating millions of phony bank accounts to get fees for doing that. and moving people's money around and putting it into other accounts that they didn't know about. we are talking about 5300 employees, some of these are managers, who are essentially creating ghost accounts. >> seth: dammit! [ light laughter ] they set up ghost accounts? oh i'm sorry, mr. johnson, your money died ten years ago. [ laughter ] on a night much like tonight. creating bank accounts in customer's names. ghost accounts. and transferring their money without telling them. all so they could meet sales quotas and get bigger bonuses. pleas

ells fargo scandal >> not yet. i think for wells, there is a discount, but it hasn't bled out to the other banks yet. we are concerned that regulators are coming after the bank's little too aggressively and finding things that are really there. in their sales culture, i think they have some pretty good checks and balances in place. wells, we are shocked the compliance side didn't have better checks and balances. we hope other banks did a better job with this. that was paul miller speaking to bloomberg's daybreak america. matt: time for a look at some of the biggest business stories in the news right now, starting with the u.s. government. it is expected to ban all samsung galaxy smartphones from airlines. -- aan is significant significant expansion of restriction on devices that have been burning or overheating. the devices will be not allowed aboard any aircraft even if they have been shut off. is contemplating a merger between its top to chemical companies that would combine more than $100 billion in assets. acco

in his report, whitman noted wells fargo declined to provide a defense. he says that should have been an automatic win for guitron and a win, he says, would have required osha to provide details about the case to banking regulators so they could take action. >> that, of course, didn't happen in this case because they didn't conduct an investigation. >> reporter: the fcc declined to comment about when it learned of wells fargo's sales practices. the consumer protection bureau says it found out about the fake accounts in the summer of 2013. guitron made her osha complaint in 2010. >> you squeezed your employees to the breaking point so they would cheat customers. >> reporter: six years later wells fargo is firing thousands of employees and facing a $185 million fine. >> something is going wrong at this bank! >> reporter: congress wants to know how employees were able to open two million phony accounts. >> do you think the problems inside wells fargo could have been fixed soon if osha had investigated your clients' complaints? >> absolutely. >> reporter: thi

let's be really fair to wells fargo, do you think wells fargo, someone you cover, is that systematically corrupt that they fudged their numbers back then? that is a pretty harsh condemnation of them? also harsh condemnation on mr. sloan, excuse me, yeah, sloan, who he comes in after atkins and signs the paper knowingly, knowing that something's wrong? that is pretty damning stuff. what evidence do you have that they are that systematically corrupt, that he or that even mr. sloan is that systematically corrupt? >> i doubt that i will stand up and say mr. sloan is systematically is corrupt or the company is systematically corrupt. what i am willing to tell you this is a piece of information that is relevant and the reason why it's relevant because if the numbers of wells fargo going back through this period are questionable, it should be revealed. and in addition to which, there has been a lot of talk about mr. sloan not being associated with any of the problems that came after 2011. >> right. >> yet he was the cfo of the company for 3 1/2 years. >> there is a lot of overlap here with mana

we done just hear from wells fargo tomorrow. also from jpmorgan and sitti grou citi group, where there's likely to be questions on the fallout from this sector as a whole on the cross-selling scandal. >> wilfred frost, thank you very much. thanks for the interview. >>> house financial services committee congressman david schweiker and former chairman of that committee, barney frank. congressman, thanks for joining us today. congressman schweiker, do you trust sloan to clean this up? >> i think the magnifying glass they'll be under, it's going to get cleaned up, but it also demonstrates doing something dumb in both the regulatory, political risks that sort of come with that means you have to watch your own book of business. >> congressman frank, when elizabeth warren equates it to taking money out of the till, out of branch, do you see that equivalence? >> i don't know what she said and i would have to see it in context. i do think it was a serious problem because what you have are people -- and we won't know exactly how this wor

you have the bank index itself of which wells fargo is a big piece. and then wells fargo. and this spread is starting to become optically something that appeals to me. i want to show you something on a two-year basis. tight. keep in mind, if you didn't have an orange line doing this, the blue line would actually be higher. the orange has kept the blue line from going higher. that appeals to me, i think perhaps, perhaps it's so bad it's good. everyone knows the news. look what we just heard from those esteemed congressmen and women. so third chart. this is the same chart as this. these are the two lines absolute. and then this is held as a constant. this is the bank index as though it didn't move and showing you the relative performance. you're making shocking five-year relative lows. and literally, it's a free-fall, right? so it was outperforming and now -- okay. here's the chart. five years -- now we've got ten versus not the bank index, but the market. so here's wells. there's the s&p. again, that optics is starting to say, you know what? i want to maybe play for mean re

fargo. john stumpt recently resigned as an apart of this scandal. this consist of wells fargo employees committing fraud, identity theft and even forgery of consumers accounts. often setting up phony bank accounts as well as phony credit cards. over 2 million bank accounts were set up by wells fargo bank as well as the 500,000 or so credit cards without the consent of consumers. this latest scandal from wells fargo is on the hills of wells fargo being caught in its lend willing predatory practice under the loan crisis and as a result of that wells fargo was very difficult to work with, a lot of households that were impacted by that crisis and not allowing them to modify their mortgage and loans. across california and across the country, the stage coach of wells fargo has left a lot of dust in its wake and ghost towns as well like you see in modesto and stockton. in satisfy, we've seen a number of households especially in the southern part of san francisco in the southeast part of san francis

fargo employee -- it suggests c-e-o john stumpf may have known as far back as 2007. this, of course, referring to the more than 2 million fake wells fargo accounts opened by bank employees without accout holders' knowledge. the letter was addressed to stumpf and warned of "unethical and illegal activity" inside wells fargo. it also warned of "routine deception and fraudulent exploitation of our clients." stumpf was not available for comment. kim and jessob -- back to you. state dinner at the white house last night. the president and first lady michelle obama welcoming the prime minister of italy. fox's jackie ibanez, has more from new york. president obama hosting his last state dinner as leader of the united states. the president and the first lady welcomed the italian prime minister and his wife as their final guests tuesday night. coming as the election to replace him heats up. obama says: "we look up at the us capitol and then again some days our presidential campaigns can seem like dante's inferno." the meal was provided by celebrity chef mario batali and featur

wells fargo has provided full refunds to all the customers affected. the ceo resigned last week. >>> in the meantime a wells fargo whistle-blower says she turned to the government for help. >>> a former federal investigator says if osha did its job, the problems inside wells fargo could have been exposed sooner. investigative unit's liz wagner has the story. >> we talked to an investigator for osha. he says in 2010 his agency received a complaint from a wells fargo employee in napa valley. that employee claims she was fired for raising red flags. she turned to osha. the investigator darrell whitman says no one investigated her complaint. whitman says the agency assigned it to him six months later so he could close it after she filed a lawsuit. the agency doesn't have to pursue cases. whitman says osha should have conducted an investigation before ka troen filed her lawsuit. whitman says back in 2010 osha failed to give details of the case to banking regulators. one more note here, catrone's federal lawsuit was dismissed when the judge sided with wells

look at the stock rice of wells fargo, it is down 10% from the overall banking index. is that the type of hit that you would have seen coming for wells fargo or would you have thought it would be much bigger in the wake of a scandal like this. let's let the stock price tell us how bad this is for the bank. >> what caused this scandal, okay, you have a degree of regulatory after by trash, you couldn't do proprietary trading, all this stuff because of dodd/frank, so they had to focus on the retail side and ramp up cross-selling. now that's gone. if you're playing the stock market on this bank earnings as bad as they are -- by the way, wells fargo hasn't had -- none of these banks have done well the last five or six years, take down all your earnings estimates on these banks because they just got squeezed on a line of business which is legal, cross selling. >> the banks are doing the right thing without government stepping in and government overreach and creating new laws that are going to stifle -- >> what are you talking about. >> jpmorgan's cfo said we've found cross-s

wells fargo has done that with this move. and they've also put a vice chair in place that has a lot of banking experience. so i think those two appointments are as important if not more so than what we saw in the change of the ceo's job that we saw yesterday. >> of course now we're focusing on the earnings numbers tomorrow and the conference call after that. will we see specific changes in the numbers because of this scandal? or is this still just a pr issue and what are you focused on in the numbers tomorrow? >> well, i think you're dividing this issue appropriately in a sense that if you look at the franchise with customers and employees or the financials, those things are intact. we don't expect to see a big impact on the announcements of earnings tomorrow. actually, i think they could, you know, beat with banking being relatively strong in the third quarter. it's a reputation and regulatory issue that they have to move forward and make sure they address appropriately here. >> we know we're still expecting lots of pressure

the bank an san francisco program effect immediately >> (clapping.) >> and we can't wait for wells fargo to help people through this terrible experience that's why the balance the community partners offered free one-on-one coupling for anyone effected started day they can call 9006006 and speak to a qualified council to run their credit report and found out what to do next we want to thank balance for stepping up their phone call will be on the website just to be clear this is a free serve service and anyone will semi you anyone that's why balance is our partner in the program and i give you my word they'll be trusted with our financial information next week i'm headed to washington, d.c. to talk with the powerful coalition at the financial bureau and with members of the california delegation and i'm calling on my all my colleagues to stand request bank on the other hand, on san francisco police commission we've been the leader in the nation and continue to stand up against financial institutions that breach our trust there are many unanswered questions he want san franciscans to know we

dumped out at wells fargo but the scandal might not be over. what does hillary clinton think about the financial sector? about the financial sector? we know what she says publicly what is success? about the financial sector? we know what she says publicly is it a professor who never stops being a student? is it a caregiver determined to take care of her own? or is it a lifetime of work that blazes the path to your passions? your personal success takes a financial partner who values it as much as you do. learn more at tiaa.org this man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. anthony: embattled ceo of wells fargo john stumpf is outgary: sn who grilled stumpf isn't done with him yet. though she tweeted a