Items Tagged with 'Wells Fargo account scandal'

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Wells Fargo clears living will hurdle; sanctions removed by Fed, FDIC

Successfully addresses issues in 2015 plan
It’s been a rough few months for Wells Fargo, but the megabank got a rare bit of good news on Monday when the Federal Reserve Board and the Federal Deposit Insurance Corporation announced that the bank successfully remedied the issues in its 2015 “living will,” which will remove a series of sanctions from the bank.
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Wells Fargo increases fake account class action settlement to $142 million

$32 million addition covers accounts fraudulently opened as far back as 2002
Last month, Wells Fargo announced that it agreed to a $110 million settlement in a class action lawsuit brought on behalf of the bank’s customers who had a fake account opened in their name. The settlement covered anyone who had an account opened in their name without their consent stretching back to Jan. 1, 2009. But Wells Fargo announced Friday that it is expanding both the size of the settlement and the time period the settlement covers by an additional seven years.
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Former Wells Fargo exec claims bank fired her for refusing to scam customers

Lawsuit claims that bank’s executives pushed for fake accounts
A former executive at Wells Fargo claims in a lawsuit that the bank fired her because she refused to participate in a scam like the bank’s well-publicized fake account scandal, which led to a $185 million fine after more than 5,000 of the bank’s former employees opened more than 2 million potentially unauthorized accounts to get sales bonuses.
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New Wells Fargo CEO pens open letter thanking customers for their loyalty

Sloan: We commit to you that we will make things right
It probably goes without saying that it’s been a rough few months for Wells Fargo. It all started with the shocking revelation of the fake account scandal at the bank, which involved more than 5,000 of the bank’s former employees opening more than 2 million fake accounts to get sales bonuses. And now the bank is working to repair its tarnished reputation.
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Wells Fargo reaches $110 million class action settlement over fake accounts

Settlement will cover anyone who had account falsely opened in their name
The fallout from Wells Fargo's fake account fiasco is far from over, as the bank announced late Tuesday that it reached a $110 million settlement in a class action lawsuit brought on behalf of the bank’s customers who had a fake account opened in their name. Click the headline to read more about the settlement.
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Wells Fargo fails fair lending test due to "discriminatory and illegal" credit practices

Bank’s Community Reinvestment Act rating lowered to "Needs to Improve"
Late last year, as the fallout from the fake account scandal at Wells Fargo was still in full force, rumors began to circulate that the bank could be facing another regulatory smackdown due to reportedly failing to meet its requirements under the Community Reinvestment Act. And Tuesday, the other shoe dropped, as the bank disclosed that it did indeed fail to meet its CRA requirements.
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NY Fed president compares Wells Fargo fake account scandal to subprime mortgage crisis

Dudley: Like subprime crisis, compensation made bankers ignore consequences
The president of the Federal Reserve Bank of New York told the Banking Standards Board in London on Tuesday that he sees quite a few similarities between the Wells Fargo fake account scandal and the subprime mortgage crisis of the late 2000’s. "Compensation, once again, seems to be at the center of a scandal," NY Fed President William Dudley said in the speech.
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Maxine Waters accuses Wells Fargo execs of dodging fake account inquiries

Says execs questioned by Republicans, but won't sit for Democrats
Wells Fargo executives are dodging additional Congressional inquiries into the bank’s massive fake accounts scandal, Ranking Member of the House Committee on Financial Services Maxine Waters, D-Calif., said last week in a letter sent to Wells Fargo CEO Timothy Sloan. Click the headline for more on Waters' accusation and what Wells Fargo says about it.
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Wells Fargo's fake account scandal didn't dent 2016 mortgage business

Here's a full breakdown
Wells Fargo spent much of the latter part of 2016 cleaning up the mess from its massive fake accounts scandal and trying to repair the damage to its reputation, but the bank’s mortgage business certainly didn’t suffer last year. Here's a full breakdown of Wells Fargo's 2016 mortgage business, including how many 3% down mortgages the bank originated.
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Two more execs out at Wells Fargo as fake account fallout continues

Los Angeles Times reports on departure of two California regional presidents
A few weeks ago, Wells Fargo announced that it fired four senior managers in the fallout 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. And according to a new report from the Los Angeles Times, those four executives aren’t the only ones who recently left the megabank.
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