Articles Tagged with ''Wells Fargo account scandal''

Wells Fargo CEO Tim Sloan abruptly steps down

Retiring in June, but relinquishing post immediately
Just over two weeks ago, Wells Fargo CEO Tim Sloan was subjected to a four-hour beating at the hands of Congress over the bank’s recent bevy of scandals, but Congress no longer has Sloan to beat up on. Wells Fargo announced Thursday that the embattled Sloan is relinquishing his post as CEO and president of the megabank and stepping down immediately.
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Wells Fargo inks new $240 million settlement over execs’ knowledge of fake accounts

But this settlement will see the bank get paid
Well, it’s been about two months since Wells Fargo reached a nine-figure settlement over its recent scandals, and that means it must be time for another one. The bank revealed recently that it agreed to a new $240 million settlement over claims that its executives did not do enough to address the issues that led to the bank’s fake accounts scandal. But unlike the bank’s previous settlements over the fake accounts, this settlement will see the bank get the money instead of paying it out.
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Court approves Wells Fargo’s $480 million settlement for allegedly lying about fake accounts

Shareholders accused bank of lying about “cross-selling” tactics
Wells Fargo will pay $480 million to a group of the bank’s shareholders as part of a class action settlement for allegedly lying about the sales practices that led to the bank’s massive fake accounts scandal. The shareholders claimed that the bank and its executives made “misrepresentations and omissions” about the bank’s “cross-selling” business model, where bank employees were rewarded for getting customers to open up multiple accounts.
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More trouble for Wells Fargo? Top execs take “leave of absence” amid ongoing investigations

Chief administrative officer, chief auditor removed from bank’s operating committee
Wells Fargo’s troubles appear to be far from over. The once-impenetrable megabank announced Wednesday that two of its top executives are taking “leaves of absence” for an unspecified length of time and will no longer serve on the company’s operating committee. According to the bank, their leaves of absence are related to “previously disclosed ongoing reviews by regulatory agencies in connection with historical retail banking sales practices.”
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Wells Fargo expects to cut as many as 26,500 jobs in the next 3 years

Company reveals planned headcount reduction of between 5%-10%
It’s been a rough few years for Wells Fargo and the next few years won’t be much better, for as many as 26,500 of the bank’s employees. That’s because the bank announced Thursday that it expects to see a reduction in headcount of as much as 10% of the company’s workforce in the next three years. The company currently has approximately 265,000 employees, meaning as many as 26,500 could be out of a job by 2021.
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New Mexico sues Wells Fargo for opening up fake accounts

Attorney General Hector Balderas follows through on threat to sue bank
Back in November, New Mexico Attorney General Hector Balderas threatened to sue Wells Fargo over the bank allegedly opening up thousands of fake accounts in the state’s residents' names, and now, Balderas is following through on that threat.
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Court finally approves Wells Fargo’s $142 million fake account class action settlement

It’s finally final
A federal court has finally given final approval to Wells Fargo’s $142 million class action settlement for the bank’s customers who had a fake account opened in their name. The final approval comes nearly a year after the settlement received preliminary approval by the judge overseeing the lawsuit, and more than a year after the settlement was first announced.
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Wells Fargo agrees to pay $480 million to shareholders to settle fake accounts suit

Settlement reached in pending class action suit over bank’s sales practices
The fallout from Wells Fargo’s fake accounts scandal is not finished yet. The bank announced Friday afternoon that it reached a new settlement over its sales practices and will pay $480 million to a group of shareholders who accused the bank of making "certain misstatements and omissions" in the company’s disclosures about its sales practices.
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Wells Fargo extends deadline to take part in $142 million fake account settlement

Deadline was February 3, new deadline is July 7
It’s been a busy day in the settlement department for Wells Fargo. Early Friday, the bank was fined $1 billion by the CFPB and the OCC for mortgage lending and auto insurance abuses. And late Friday afternoon, the bank notified customers that it is extending the deadline to participate in the bank’s $142 million fake account class action settlement.
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Report: Fed regulators to fine Wells Fargo $1 billion

Penalty for megabank’s misbehavior in auto and mortgage markets
A new report from the Washington Post says that both the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency are preparing to fine Wells Fargo about $1 billion for misbehavior in the automotive and mortgage markets. Citing two people familiar with the negotiations, the Washington Post reported that the settlement could be announced as soon as Friday.
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