Wells Fargo under federal investigation – report

by Ryan Smith21 Mar 2018

Adding to Wells Fargo’s seemingly endless list of scandals, the company’s wealth-management unit is now reportedly under federal investigation.

The Department of Justice and the Securities and Exchange Commission are investigating the unit, according to a Wall Street Journal report. Citing sources familiar with the matter, the WSJ reported that FBI agents have interviewed some Wells Fargo employees.

The federal investigation is separate from an independent inquiry being led by a New York law firm, according to the Charlotte Business Journal. That investigation is looking into whistleblower claims that employees of the bank’s wealth-management unit pushed customers to purchase more expensive products and services in an effort to boost their own compensation.

This is just the latest scandal for the embattled bank, which has dealt with one crisis after another since the September 2016 revelation that its employees had opened millions of unauthorized customer accounts.

The bank has also been in hot water over charging its mortgage customers improper rate-lock fees – and later botching the refunds of those fees. It’s also been sued by two cities over allegedly discriminating against minority borrowers in its mortgage lending.

 
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COMMENTS

  • by Compliance Guy | 3/21/2018 3:45:39 PM

    Wells Fargo under Federal Investigation= blah blah blah. Nothing new here. I need someone to explain these numbers. In the past 5 years banks and other institutions have paid more than $150 billion in fines. However, according the Federal Deposit Insurance Corp. data, these same banks and institutions have generated profits of over $700 billion. Not a bad trade off.

    Wells Fargo stock price 03/22/2013 was $37.20. Five years later and after paying out billions themselves, todays stock price is $55.04. 2 Big to Fail?

  • by Pauline | 5/25/2018 5:19:42 AM

    This is exactly what I went through with a financial advisor...pushing me to take out a home mortgage rather than buy in cash, pushing for trustees services, passing my private info to a relative so as to entice me to buy another home sooner than planned....yet Wells Fargo said no wrong here done...WHAAT??? Privacy of a private banker needs respect. When we say no, we say no, don't keep after us to spend money for WF benefit primarily, which includes sending us a paper to check off what we might open or be interested in in the future so a financial advisor reaps a commission....where is the integrity?? BTW...have been with WF many more years than financial advisor, so I am well aware of their services...Where is the protection of your investors?? Or the scruples??? Get rid of your privacy rule then. It's not adhered to or respected by your own employees in this case.

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