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Sen. Elizabeth Warren (D-Mass.), a fierce advocate for consumers' rights, called for outgoing Wells Fargo CEO Timothy Sloan to be subject to an investigation and jail time if he is found to have committed any crimes while at the helm of the bank, which has been found guilty of fraud in recent years. (Photo: @LMcIntireShaw/zesty_finance/Twitter)

As Wells Fargo CEO Tim Sloan Reaches for Golden Parachute, Warren Says 'If He Broke the Law, He Should Go to Jail Like Anyone Else'

"Getting fired shouldn't be the end of the story for Tim Sloan."

Julia Conley

Wells Fargo CEO Timothy Sloan is resigning following several scandals at the bank, he announced Thursday—but Sen. Elizabeth Warren called for the executive to be investigated instead of walking away with a "golden parachute" retirement package.

Sloan announced his resignation Thursday after a three-year tenure at the helm of the bank at a time when it was mired in accusations of fraudulent behavior, corrupt practices, and attacks on its customers.

Warren, a 2020 presidential candidate and longtime consumer advocate, has been one of the most vocal detractors of Sloan and Wells Fargo in recent years, telling Sloan a year ago that he "should be fired, not rewarded" when he received a 35 percent pay raise the year after the bank had been forced to pay a $185 million fine for opening fraudulent accounts in customers' names and selling unnecessary car insurance and other products to consumers.

"About damn time," wrote Warren on her Twitter account after learning of Sloan's ouster.

The Massachusetts Democrat made clear that Sloan's departure—which comes with a $24 million retirement package and stock grants—is not sufficient to hold the former CEO to account for overseeing a company where profits were prioritized at the expense of millions of customers who were charged fees for unknowingly having fraudulent accounts in their names.

"Getting fired shouldn't be the end of the story for Tim Sloan," she wrote. "He shouldn't get a golden parachute. He should be investigated by the SEC and the DOJ for his role in all the Wells Fargo scams. And if he's guilty of any crimes, he should be put in jail like anyone else."

Sloan's resignation came just weeks after a New York Times article quoted several Wells Fargo employees who said pressure still remains at the bank to "squeeze extra money out of customers," many of whom are recent college graduates and retirees with limited funds—years after the news of the bank's first major scandal broke.

Earlier this month, Warren and Sen. Sherrod Brown (D-Ohio) urged the Federal Reserve to keep Wells Fargo from expanding its business until Sloan was ousted from his position. Regulators had forbid the company from growing in 2018 and the senators demanded that the restriction be held in place.

Warren and Brown pointed to reports that Wells Fargo has not compensated customers who were charged for auto insurance they didn't need in a 2017 scheme, as evidence that Sloan was unfit to lead the company.

"Recent reports provide more evidence that Wells Fargo is fundamentally broken, with a record of misconduct that has lasted for years," the senators wrote. "There is no evidence whatsoever that Mr. Sloan will fix these problems."

On social media, Warren wrote that Sloan's resignation brings to light the need for Congress to pass the Ending Too Big to Jail Act, which she introduced last year.

"I'm glad Tim Sloan got canned, but let's be clear: if he broke the law, he should go to jail," Warren wrote. "My Ending Too Big to Jail Act would make sure that bank executives can be held personally responsible for their banks' cheating."

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