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Wells Fargo defends its efforts after Sen. Warren lashes its leadership

Key Points
  • A Wells Fargo representative emphasized the bank's progress in restoring trust after Sen. Elizabeth Warren reiterated her criticism of the bank's malpractices on Tuesday.
  • In an exclusive interview on "Mad Money," Warren called for the removal of some of the bank's top executives.
Sen. Elizabeth Warren says Wells Fargo misdeeds were all about juicing reported profits

A Wells Fargo spokesperson defended the bank's efforts to restore trust on Tuesday, emphasizing an internal checklist meant to address former malpractices.

The response came after Sen. Elizabeth Warren (D-Mass.) reiterated her criticism of the bank's improper sales procedures and called on the Federal Reserve to remove Wells Fargo's board of directors.

"Wells Fargo's Board and management team have taken many actions in response to retail sales practices issues, including changes in senior leadership, eliminating product sales goals for retail bankers as well as numerous steps to make things right with any customer affected by unacceptable sales practices," the spokesperson wrote in an email to CNBC. "That work — including a $142 million class action settlement — continues and remains a core part of our efforts to build a better Wells Fargo for the future."

The checklist, referred to as a "Progress Report," cites the various reforms Wells Fargo has made or plans to make to restore trust with customers, shareholders and employees.

Already-completed items include electing Tim Sloan as the bank's CEO, terminating managers connected to the improper sales practices, refunding afflicted customers, getting rid of lofty sales goals, raising the minimum wage for U.S.-based employees and boosting ethics standards, according to Wells Fargo.

Initiatives still in progress include increasing oversight at community branches, reforming hiring processes and notifying customers of the class-action settlement and the bank's commitment to preventing further malpractices.

The bank also vows to remediate over $80 million to customers affected by problems with the bank's auto Collateral Protection Insurance.

The final item on the checklist reads, "[Begin] the roll out of transformational changes to processes, coaching and customer interaction within the Community Bank to take customer and team member experience to a new level."

On Wednesday, credit rating agency DBRS downgraded Wells Fargo from AA to AA (low) because of its fake-account scandal. In August, an independent investigation found that Wells Fargo employees had opened nearly double the number of unauthorized accounts as the bank had originally stated.

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