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.

The firings are the result of an internal investigation that the bank’s board of directors launched last year to determine how 5,000 of the bank’s former employees opened as many as 2 million accounts without authorization in order to get sales bonuses.

According to Wells Fargo, as a result of the ongoing investigation, four executives from the bank’s community banking division are now former employees of the bank as well.

The bank said that its board unanimously voted to terminate each of the employees with cause.

The fired executives are:

  • Claudia Russ Anderson – Former Community Bank Chief Risk Officer
  • Pamela Conboy – Arizona Lead Regional President
  • Shelley Freeman – Former Los Angeles Regional President (now head of Consumer Credit Solutions)
  • Matthew Raphaelson – Head of Community Bank Strategy and Initiatives

According to Wells Fargo, none of the fired executives will receive a bonus for 2016.

Each of the fired executives will also forfeit all of their unvested equity awards and vested outstanding options, the bank said.

The bank also said that its internal investigation is continuing. The board said that it expects the investigation to be completed before Wells Fargo’s annual meeting of stockholders, which is scheduled for April 2017.

The board said that the full findings of the investigation and any additional actions will be made public by that time.

For much more on the Wells Fargo fake account situation, click here.

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