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Wells Fargo moves to begin internal investigation into fake accounts

Reportedly chooses four independent board members to lead inquiry

Wells Fargo bank photo

Wells Fargo is reportedly ready to take the next step in its attempt to climb back out of the hole it dug itself after a scandal enveloped the bank involving 5,000 of the bank’s former employees opening as many as 2 million accounts without authorization in order to get sales bonuses

The scandal led to the bank being fined $185 million and other significant changes, including the splitting of the CEO and chairman of the board roles, as the company moves to restore the trust of its customers and fend off regulatory and Congressional onslaughts.

After the scandal broke, Wells Fargo’s board of directors said that it planned to launch an internal investigation to determine how the fake account issue festered for as long as it did.

Now, according to a report from Reuters, Wells Fargo is ready to begin that internal investigation, naming four board members to a committee that will lead the investigation.

From Reuters:

Wells Fargo & Co Chairman Stephen Sanger and Vice Chair Elizabeth Duke have been named to a four-member committee that will lead an internal investigation into the bank's recent sales scandal, a person familiar with the matter said on Thursday.

Rounding out the special committee's leadership, the person said, are Enrique Hernandez, chair of the board of directors' risk committee, and Donald James, a director who sits on the board's finance and risk committees.

As Reuters notes, all four of the board members are independent, including Sanger, who became chairman of the board after Wells Fargo’s former CEO and chairman, John Stumpf, stepped down.

Source: Reuters
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