Wells Fargo has said it’s responded to the scandal by investing in compliance measures like secret shoppers and more oversight.
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Wells Fargo is cutting its aggressive product sales goals for retail bankers, the bank announced Tuesday after state and federal regulators fined it $185 million last week for allegedly opening millions of unauthorized accounts to meet those targets.
U.S. Attorneys offices in NY and California have opened investigations into Wells Fargo’s (WFC) sales practices, sources told the Wall Street Journal. Benjamin I. Sachs-Michaels, Esq.
According to regulators, thousands of Wells Fargo employees were allegedly involved in a widespread scheme to reach aggressive sales goals – and earn bonuses – by creating 2 million accounts, including credit cards, customers didn’t authorize.
On September 20, Wells Fargo CEO John Stumpf will appear in front of the Senate Banking Committee, where Warren is a member, a bank spokesperson tells the news website. But Mr. Stumpf also said the bad behavior didn’t signal wider institutional or cultural problems within Wells Fargo.
Wells Fargo has always been known for its aggressive sales goals, but in an industry plagued with questionable action during the mortgage bubble and financial crisis, it was also regarded as a well-run, tightly managed firm. When she retires at the end of the year she will be eligible for $124.6 million in stock, options, and restricted Wells Fargo shares, some of which haven’t vested yet, according to Fortune. “The acquisition of GFS will create a compelling advantage for our customers as they access and manage sophisticated asset classes”, said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
Last year, in response to an advertisement featuring a lesbian couple, noteworthy evangelicals like the Rev. Franklin Graham said they’d had enough and closed out their accounts.
“We are prepared to provide the committee with information on this matter and to discuss steps we have taken to affirm our commitment to customers”, Wells Fargo said Tuesday.
Carrie Tolstedt, the head of the bank’s retail operations where the abuses are alleged to have occurred, stepped down in July.
Fortune first reported Monday that Tolstedt would leave the company with a large payout despite having been in charge of the division.
Well Fargo’s shares have lost about 6 percent of their value since last week, when USA regulators unveiled the fines.
“Sharjah Islamic Bank is, therefore, delighted to have been recognised by such an esteemed global banking institution as Wells Fargo, for meeting the needs of both our customers and our worldwide partners”, Saad added.
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Despite growing calls to claw back Tolstedt’s pay, Stumpf three times said that “to the extent that is a consideration”, it would be left up to Wells Fargo’s board.
