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Punish Wells Fargo? Yes. Break it up? No.

Wells Fargo CEO pummeled by House committee

It looks like Americans have found a rusty pitchforks they final used in 2008 when we found out large banks were working badly.

Wells Fargo (WFC) CEO John Stumpf seemed twice on Capitol Hill this week. Unsurprisingly, he was grilled. And it was a bipartisan roasting.

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Democratic Senator Elizabeth Warren called him “gutless” and told him he should quit — a call echoed by Republican Congressman Roger Williams. And Republican Congressman Patrick McHenry called Stumpf “tone deaf” for not noticing a problems earlier.

But maybe a biggest complaint of Stumpf and Wells Fargo came from Democratic Congresswoman Maxine Waters.

“I’ve come to a end that Wells Fargo should be damaged up,” she pronounced during Thursday’s hearing. “It’s too large to conduct and I’m relocating brazen to mangle adult a bank.”

Now wait only one minute. Doesn’t that go a small too far? As bad as a Wells Fargo liaison is, a call to idle a bank seems to be a bit of an overreaction.

Yes, some-more than 5,000 employees have been dismissed for their roles in environment adult feign accounts. There might be some-more heads on a chopping block. It’s reasonable to advise that Stumpf should be canned too, as good as other comparison managers.

Related: Wells Fargo workman plea claims rile adult Congress

we also have no problem whatsoever with a clawing behind of bonuses and other remuneration for Stumpf, Wells village banking arch Carrie Tolstedt and other high-ranking officials during a bank.

At best, these executives were preoccupied to a bad behavior. It’s some-more heavy if they knew about it and incited a blind eye to it. It’s apparently even worse if we find out that they knew AND actively speedy it.

But should lawmakers unequivocally be pursuit for a dismantling of Wells Fargo, a bank with about 268,000 employees?

Think of all a bank tellers, debt brokers, behind bureau people and other Wells Fargo workers who had positively NOTHING to do with this mess. Should they all be punished?

A lot of banks went underneath during a Great Recession and many ethical, industrious financial services workers employees mislaid their jobs for no error of their own. Why should we actively base for that to occur again?

Sure, some are arguing that Wells Fargo would be improved off being chopped adult into pieces. Several of my supporters on Twitter have told me that they consider a garland of Baby Wells will breeze adult heading to some-more jobs.

Related: Lawmakers review Wells Fargo to ‘criminal enterprise’ like Enron

Each particular square would need some-more correspondence people and center managers, for example. Yes, that could happen. But we have a unctuous guess that violation adult Wells would give a association an forgive to lay off some-more workers, not supplement them.

What’s more, isn’t this a democratic, free-market society? Why should Congress do a pursuit of investors, consumers and regulators?

Wall Street is already punishing Wells Fargo. Its batch has tanked. If consumers are unequivocally angry, they could (and substantially should) pierce their bank accounts from Wells Fargo to smaller village banks or credit unions.

And even yet bank regulators have taken their honeyed time to retaliate Wells Fargo — a problems date behind to 2011 during a minimum, and some disagree a feign accounts emanate was a problem years before that — they are behaving strongly now.

Trust me, we have no magnetism for Stumpf. I’m also unhappy that everyone’s favorite billionaire, Warren Buffett, apparently is selecting to wait until after a choosing to contend a lot some-more about a scandal.

CNBC reported Thursday that Buffett has oral to Stumpf and that Buffett told Stump he misjudged a range of this scandal.

Related: Does Buffett have a new favorite bank stock?

But doesn’t a Oracle of Omaha owe it to Berkshire Hathaway (BRKB) shareholders to contend even some-more about Wells? Especially in light of his famous quote behind in 1991 about how he would be “ruthless” if any of his companies mislaid a “shred of reputation” for Berkshire?

I’d disagree yes. But I’d also disagree that members of Congress should stay out of this. The guilty should be punished. But it’s not time to light a compare and bake down a whole Wells Fargo stagecoach.

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