Wells Fargo (WFC
) CEO John Stumpf is apologizing before Congress Tuesday for his bank’s misdeeds in opening sham accounts for its customers, as the company’s stock continues its two-day recovery.
“I am deeply sorry that we failed to fulfill our responsibilities to our customers, to our team members and to the American public,” he said in the testimony he prepared for Congress, which was obtained by The New York Times
. “I have been with Wells Fargo through many challenges, none that pains me more than the one we will discuss this morning.”
Of course Stumpf was a little less apologetic in an interview with The Wall Street Journal
last week, blaming the problems on his underlings. “There was no incentive to do bad things,” he said.
After falling for six straight days, Wells Fargo stock (WFC
) is bouncing back. There’s good reason for that, says Morningstar analyst Jim Sinegal. “The Consumer Financial Protection Bureau contains more than 10,000 customer complaints related to issues with Wells Fargo accounts and services. However, this represents only nine complaints for every $1 billion of customer deposits held by the bank,” he wrote in a report
“By comparison, TCF Financial recorded more than 50 customer CFPB complaints for every $1 billion of customer deposits, and CFPB complaint rates at large regional competitors like Regions Financial, SunTrust, and Citizens Financial were over 50 percent higher than those at Wells Fargo.”
In the last 30 days, 17 analysts
have issued reports on Wells Fargo, with eight of them positive. The forecasts generated a median share-price target of $50, which represents a 7 percent rise from Tuesday morning’s level of $46.46.