Items Tagged with 'Fake Accounts'


  • Wells Fargo pays $3.25 billion in Q4 for mortgage regulatory investigations, sales practices

    Mortgage banking creates pull on bank’s income
    2017 has been quite a year for Wells Fargo, as it continued to face fallout from its massive fake accounts scandal. Now, the bank’s fourth quarter earnings show Wells Fargo paid a total of $3.25 billion in pre-tax expenses for litigation accruals on a variety of matters including mortgage-related regulatory investigations, sales practices and other consumer-related matters.
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  • New Mexico wants damages from Wells Fargo over fake accounts

    AG Hector Balderas seeking to have state’s victims paid back
    The states of California and Ohio aren’t quite ready for things with Wells Fargo to go back to normal in the wake of the bank’s fake account scandal – and it looks like New Mexico isn’t either. The state's attorney general wants damages from the bank on behalf of the state’s residents that were affected by Wells Fargo’s actions.
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  • Wells Fargo scandal deepens: Bank reveals up to 1.4 million more fake accounts

    Reports show 70% more accounts than first thought
    An internal investigation at Wells Fargo revealed that the bank’s fake account scandal is a much larger issue than anyone thought. Nearly a year ago, the bank was fined $185 million for 5,000 of the bank’s former employees opening as many as 2.1 million accounts without authorization in order to get sales bonuses. As it turns out, the number of potentially fake accounts was actually 3.5 million – 1.4 million more than first thought.
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  • Wells Fargo ordered to pay $575K, rehire fake account whistleblower

    Bank punished by Department of Labor over firing branch manager
    Just when it seemed like the ripples of Wells Fargo’s fake account scandal were calming down slightly, the Department of Labor is throwing another pebble into the pond. The Labor Department announced Friday that it ordered Wells Fargo to pay $577,500 in back pay, damages, and legal fees to a whistleblower who was fired by the bank after she reported that at least three of the “private bankers” working for her were opening accounts in customers’ names without their consent.
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  • Warren calls on Fed to boot 12 Wells Fargo board members over fake accounts

    Says board members’ lax oversight allowed scandal to grow
    The fallout from Wells Fargo’s fake accounts scandal has been rightfully significant, but if Sen. Elizabeth Warren, D-Mass., has her way, the fallout will extend to a place it’s barely touched so far – Wells Fargo’s boardroom. On Monday, Warren sent a letter to the Federal Reserve Board of Governors, asking the Fed to remove all 12 of Wells Fargo’s board members who served during the time period that the fake account scandal took place.
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  • Wells Fargo guarantees all fake account customers will be fully compensated

    Settlement could exceed $142 million
    Wells Fargo is facing another potential scandal on its hands, as the bank stands accused of making unauthorized changes to the mortgages of borrowers in bankruptcy. But, the bank is a long way from being able to put its fake account scandal in the rearview mirror. Now, it looks like the bank's proposed $142 million fake account class action settlement may not be enough.
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  • Judge: Wells Fargo $142 million fake account settlement may not be enough

    Asked to guarantee affected customers will be repaid fully
    Wells Fargo's proposed $142 million settlement in the class action lawsuit brought on behalf of the bank's customers who had a fake account opened in their name is moving closer to being finalized, but the judge overseeing the settlement cautioned the bank that $142 million may not be enough money to compensate all the affected customers.
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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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