WEBVTT

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BUT IN TERMS OF OUR UNDERLYING

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REVIEW OF THE OVERALL BUSINESS,

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WE'RE NEARING COMPLETION OF

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THAT.

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>> MARIA: HOW DO WE KNOW WE'RE

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NOT GOING TO FIND ANOTHER

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MISDEED UNDER A ROCK?

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WE THOUGHT EVERYTHING WAS OVER

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AND IN THE REAR VIEW MIRROR AND

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THEN WE FIND OUT ABOUT THE 401-K

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INQUIRY.

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>> AGAIN, WE DISCLOSED THAT

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INQUIRY AND THAT'S PART OF THE

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INCREASED TRANSPARENCY THAT WE

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HAVE AT THE COMPANY.

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I'VE BEEN VERY CLEAR TO SAY

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LET'S NOT USE THE TYPICAL KIND

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OF FINANCIAL MATERIALALITY

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STANDARD THAT MOST FIRMS DO IN

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TERMS OF DISCLOSURE.

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LET'S BE VETERANS

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LET'S BE VERERANS

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LET'S BE VERYRANS

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LET'S BE VERY  NS

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LET'S BE VERY   TRANSPARENT.

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>> MARIA: JUST BECAUSE YOU

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DISCLOSED IT DOESN'T CHANGE THE

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SITUATION.

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THERE'S NOR INQUIRY AND WE'RE

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LOOKING AT MORE MISCONDUCT IN

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THE 401-K BUSINESS.

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>> WE'RE LOOKING INTO IT.

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THERE'S AN ACTIVE REVIEW OF

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THAT.

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AGAIN, IF THERE'S ANY SORT OF

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ISSUES IN TERMS OF IMPROPER

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CONDUCT WITH OUR CUSTOMERS,

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WE'LL MAKE IT RIGHT BY THEM.

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>> MARIA: LET ME ASK YOU ABOUT

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THE REPUTATION AND THE

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RELATIONSHIP WITH REGULATORS

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BECAUSE PEOPLE ARE CONCERNED

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ABOUT THIS.

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IF YOU HAVE A BAD RELATIONSHIP

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WITH YOUR REGULATORS, ARE THEY

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GOING TO STOP YOU FROM PAYING

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OUT ANY DIVIDENDS?

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>> I DON'T THINK SO.

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BECAUSE WE JUST, FOR EXAMPLE,

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HAD OUR ANNUAL MEETING LAST WEEK

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AND A BOARD MEETING AND THE

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BOARD APPROVED A 39-CENT

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DIVIDEND FOR THE QUARTER, SO THE

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ANSWER IS NO.

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WE HAVE A VERY CONSTRUCTIVE

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RELATIONSHIP WITH OUR

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REGULATORS.

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AGAIN, AS I MENTIONED BEFORE, WE

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ALL WANT THE SAME THING.

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WE WANT TO MAKE SURE THAT WELLS

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FARGO HAS THE BEST RISK ACROSS

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ALL OF THE COMPANY.

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HISTORICALLY, AND EVEN TODAY, WE

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ARE WELL-KNOWN FOR HE CREDIT

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RISK MANAGEMENT, FOR MARKET RISK

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MANAGEMENT, FOR LIQUID AT THIS

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RISK MANAGEMENT.

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WE NEED TO IMPROVE OUR

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COMPLIANCE AND OPERATIONAL RISK

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MANAGEMENT.

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WE HIRED NEW LEADERS IN THOSE

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AREAS AND WE'RE VERY FOCUSED ON

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MAKING THAT HAPPEN.

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>> MARIA: AT THAT ANNUAL

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MEETING, YOU HAD LOTS OF

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PROTESTERS OUTSIDE.

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>> WE HAD SOME.

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>> MARIA: OKAY.

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>> WE ALSO HAD A LOT OF PEOPLE

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INSIDE THAT WERE VERY HAPPY TO

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BE THERE.

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>> MARIA: THE PROTESTERS WERE

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SAYING MAYBE IT WAS THE WRONG

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MOVE TO APPROVE A MULTIMILLION

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DOLLAR PAY PACKAGE FOR YOU UNTIL

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THE GOVERNMENT'S ISSUES ARE IN

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THE REAR VIEW MIRROR.

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>> MARIA, MY PAY PACKAGE IS

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DECIDED BY THE BOARD.

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THAT'S THEIR DECISION.

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ONE OF THE THINGS THAT I DID IN

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THE LAST YEAR IS THAT THE BOARD

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HAD DECIDED THAT I WANTED TO --

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THEY WANTED TO PAY A BONUS TO ME

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AND I SAID NO, I DON'T THINK I

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SHOULD GET A BONUS BECAUSE WE

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HAVE MORE WORK TO DO.

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MOST OF MY PAY THIS THE FORMS OF

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WELLS FARGO STOCK.

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IT'S DEFERRED.

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AND I NEED TO PROPOSE AND

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PRESENT A VERY FOCUSED STRATEGY

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FOR THE COMPANY AND BE ABLE TO

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EXECUTE TO ACTUALLY EARN ALL

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THAT.

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>> MARIA: WHAT I'M GETTING AT

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HERE IS THE FACT THAT YOU'VE

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BEEN AT WELLS FOR A LONG TIME.

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>> 31 YEARS.

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>> MARIA: 31 YEARS.

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WERE YOU THE CFO BEFORE YOU WERE

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THE CEO, HAD A LOT OF POSITIONS

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IN LEADERSHIP.

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>> RIGHT.

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>> MARIA: THERE'S SOME PEOPLE

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WHO SAY LOOK, TIM SLOAN IS A

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GOOD GUY BUT HE'S AN INSIDER.

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YOU NEED A COMPLETE SWEEP HERE.

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YOU NEED OUTSIDERS COMING IN.

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YOU NEED NEW BLOOD BECAUSE THIS

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IS DEEP-SEATED CULTURE THAT IS

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BAD.

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AND YOU SAY?

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>> I APPRECIATE YOU SAYING I'M A

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GOOD GUY.

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>> MARIA: I MET YOU YEARS AGO.

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AS SOON AS I MET YOU, I SAID

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THIS GUY HAS INTEGRITY.

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THAT DOESN'T CHANGE THE FACT

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THAT YOU'VE BEEN THERE 31 YEARS

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AND YOU ARE PART OF THE SYSTEM

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AT WELLS FARGO.

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SO IT'S AN EASY FINGER TO POINT,

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OKAY, GET OUT -- THE PEOPLE WHO

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HAVE BEEN THERE 30 YEARS, GET

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NEW BLOOD IN THERE.

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>> MOST OF THAT CRITICISM IS

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FROM PEOPLE THAT DON'T KNOW

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ANYTHING ABOUT THE COMPANY AND

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CANDIDLY DON'T KNOW WHAT THEY'RE

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TALKING ABOUT.

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I THINK THAT WOULD BE THE

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APPROPRIATE CRITICISM IF AFTER

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BEING IN THIS ROLE FOR A YEAR

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AND-A-HALF WE HADN'T MADE ANY

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CHANGES.

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WE'VE MADE FUNDAMENTAL CHANGES

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IN TERMS, AS YOU MENTIONED, IN

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TERMS OF OUR LEADERSHIP, IN

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TERMS OF THE ORGANIZATION, AND

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WE'RE MAKING THINGS RIGHT FOR

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OUR CUSTOMERS AND WE'RE

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CONTINUING TO INNOVATE AND GROW

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THIS COMPANY.

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THIS COMPANY HAS A TERRIFIC

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166-YEAR HISTORY.

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WE'VE BEEN THROUGH UPS AND

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DOWNS.

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WE'RE GOING THROUGH A

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CHALLENGING PERIOD RIGHT NOW BUT

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I'M REALLY PROUD OF THE PROGRESS

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THAT WE'RE MAKING.

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>> MARIA: WHEN YOU SIT BACK AND

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THINK ABOUT WHAT TOOK PLACE IN

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THE LAST YEAR AND-A-HALF, WHAT

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WENT WRONG, TIM?

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>> WE'VE BEEN VERY CLEAR ABOUT

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THAT.

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FIRST AND FOREMOST, TO YOUR

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POINT, THE LEADERSHIP NEEDED TO

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TAKE RESPONSIBILITY.

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THERE ARE A NUMBER OF THINGS

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WHEN I LOOK BACK AT MY CAREER, I

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WISH I WOULD HAVE DONE A LITTLE

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BIT DIFFERENTLY.

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BUT THE LEADERSHIP HAS TAKEN

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RESPONSIBILITY.

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I THINK FIRST AND FOREMOST, WE

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WERE ORGANIZED IN A WAY THAT

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DIDN'T ALLOW THE APPROPRIATE

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CHECKS AND BALANCES TO OCCUR

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WITHIN THE COMPANY.

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WE'VE FUNDAMENTALLY CHANGED THAT

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UNDER MY WATCH.

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WE CENTRALIZED ALL OF OUR

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ENTERPRISE RISK FUNCTIONS.

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WE HAD AN INCENTIVE PLAN IN OUR

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RETAIL BANKING BUSINESS THAT

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CANDIDLY IT WORKED FOR SOME

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PEOPLE BUT DIDN'T WORK FOR A LOT

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OF PEOPLE AND DIDN'T ALWAYS WORK

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FOR OUR CUSTOMERS.

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WE COMPLETELY CHANGED THAT.

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WE HAVE A NEW LEADER IN MARY

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MACK THAT'S LEADING OUR

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COMMUNITY BANKING BUSINESS.

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SHE'S DOING AN INCREDIBLE JOB.

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I COULD GO ON AND ON.

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WE'VE ACKNOWLEDGED THE MISTAKES

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WE'VE MADE AND WE SET A CLEAR

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PLAN IN TERMS OF FIXING WHAT WAS

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BROKEN.

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>> MARIA: AND WAS ONE OF THE BIG

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MISTAKES UNREALISTIC SALES

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TARGETS THAT YOU DID AWAY WITH?

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>> NO.

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I THINK IT WAS AN UNREALISTIC

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INCENTIVE PLAN THAT DROVE OUR

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PEOPLE TO BE MORE FOCUSED ON

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SELLING THINGS AS OPPOSED TO

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FULFILLING THE VISION OF THE

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COMPANY WHICH IS SATISFYING OUR

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CUSTOMERS' FINANCIAL NEEDS AND

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TO HELP THEM TO SUCCEED

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FINANCIALLY.

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IT'S ABOUT PROVIDING THE RIGHT

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CUSTOMER SERVICE AND ADVICE.

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THAT'S THE NUMBER ONE