Wells Fargo to pay $3B to settle fake accounts probes
Added 02-22-20 10:18:02am EST - “Wells Fargo will pay $3 billion to settle investigations into its long-running scam that had company employees opening millions of bogus bank accounts in order to meet unrealistic sales goals. Sinc?” - Nypost.com
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Wells Fargo will pay $3 billion to settle investigations into its long-running scam that had company employees opening millions of bogus bank accounts in order to meet unrealistic sales goals.
Since the fake-accounts scandal was revealed in 2016, the San Francisco-based bank has paid out billions in fines to state and federal regulators, reshuffled its board of directors and seen two CEOs and other top-level executives leave the company. Analysts expect up to 20,000 layoffs as the bank attempts to recover from the fake accounts scandal and other abusive practices that since came to light.
“This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” US Attorney Nick Hanna for the Central District of California said in a statement announcing the settlement. “We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur.”
The payment will resolve criminal and civil liability from the fake accounts scandal, which took place between 2002 to 2016, the Department of Justice said in a statement. The fine includes a $500 million civil payment to the Securities and Exchange Commission, which will distribute those funds to investors who were hurt by the bank’s behavior.
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