Items Tagged with 'Fake Accounts'

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Wells Fargo fires four senior managers over fake account scandal

Action taken due to ongoing internal investigation
Wells Fargo announced Tuesday that it fired four senior managers as the fallout continues from the fake account scandal that led to a $185 million fine from the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the city and county of Los Angeles.
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Wells Fargo unveils replacement for scandal-ridden pay plan

Product sales goals eliminated
In the aftermath of the fake account scandal that led to a $185 million fine for Wells Fargo, the bank pledged to change its employee compensation plan, but did not provide details on how exactly the new plan would be structured beyond eliminating sales goals. Now, Wells Fargo revealed how its new pay plan is going to work.
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Wells Fargo preparing new pay plan in wake of fake account scandal

Retail employee compensation no longer tied to sales
Last year, Wells Fargo said that it planned to change its employee compensation plan, de-emphasizing the sales goals that led to 5,000 of the bank’s former employees opened as many as 2 million credit card and bank accounts without authorization in order to get sales bonuses. When Wells Fargo made that announcement in September, the details on the changes were scarce, but a new report states that the bank is ready to roll out on its new comp plan, one without sales goals.
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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 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.
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Wells Fargo splits Chairman and CEO roles in wake of fake account scandal

Changes bylaws to ensure "independence"
In the wake of Wells Fargo’s fake account scandal, which led to the bank being fined $185 million and other significant changes at the bank, some blamed the bank’s executive structure for allowing the millions of fake accounts to go unnoticed for so long. Moving forward, one person will not be allowed to serve as both chairman and CEO of the bank, as the bank’s board of directors announced this week that it is splitting the roles.
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CFPB warns companies about engaging in Wells Fargo-like sales incentives

Says unchecked sales goals can lead to harmful practices
The Consumer Financial Protection Bureau just fired a shot across the bow of all companies that provide financial services to consumers, warning companies about the risks inherent in sales incentives programs like the one that led to a massive fine being handed down against Wells Fargo.
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OCC slaps serious sanctions on Wells Fargo as fake account fallout continues

Now needs approval before making executive changes; golden parachutes banned
On Friday evening, the Office of the Comptroller of the Currency slapped a series of sanctions on Wells Fargo that were previously excluded from its settlement with the megabank over the fake account scandal. Chief among those sanctions is that the bank is now required to ask the OCC for approval if it wants to make a change to its board of directors or its senior executive officers.
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Fitch: Wells Fargo mortgage servicer ratings unaffected by fake account scandal

Ratings agency affirms bank's prime, Alt-A, subprime servicer ratings
While Wells Fargo is fighting to earn back its customers’ trust and fighting off various forays from legislators because of the more than 2 million fake accounts that 5,000 of the bank’s former employees opened in order to get sales bonuses, the bank’s ability as a mortgage servicer is still on solid footing, according to a new repot from Fitch Ratings.
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Warren, Sanders, other senators want answers from auditor KPMG on Wells Fargo

Senators question whether auditor knew of fake accounts
Wells Fargo is still answering for the more than 2 million fake accounts that 5,000 of the bank’s former employees opened in order to get sales bonuses, but now, a group of senators want to know if the bank’s auditor knew about the fake accounts too and whether the auditor did anything about it.
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