Wells Fargo to pay $3 bln for fake accounts

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2 個月前

Wells Fargo has reached a $3 billion settlement with U.S. authorities, making it one more step closer to putting its notorious fake-account scandal behind it.

The tarnished bank will make the payment to the U.S. Department of Justice and the Securities and Exchange Commission, U.S. officials announced on Friday, putting to rest one of the final major investigations into the bank's wrongdoing.

In what is rare for a corporate settlement, Wells Fargo admitted that for 14 years it pressured employees to meet "unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent." It also admitted that employees forged records or misused customer data.

As part of the agreement, prosecution will be deferred for three years and during that time Wells Fargo will cooperate with any ongoing government probes.

Bank CEO Charles Scharf, who was brought in after the scandal, said in a statement that his bank is now committed to making sure nothing like this ever happens again.

The scandal rocked the bank, which once had a stellar reputation, and sparked contentious hearings on Capitol Hill.

And more hearings are scheduled. The House Financial Services Committee is already planning three more hearings on Wells Fargo's conduct for next month.

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  • g
    gary
    Wells Fargo also sold customers car insurance they didn’t need, and charged erroneous fees which caused 20,000 cars to be wrongly repossessed.

    A computer glitch once caused over 500 Wells Fargo customers to have their houses foreclosed on.

    The bank charged 26 times the agreed price foreign currency transactions.

    Wells Fargo illegally repossessed vehicles of soldiers who were deployed overseas.

    They accidentally charged late fees to more than 100,000 customers when it was the bank that was at fault.

    In 2016 employees were caught selling customers’ Social Security Numbers to identity thieves.

    Because of all this– and sadly, I’m sure I overlooked a couple scandals– the government has fined Wells Fargo a total of $18 billion since 2012, according to data compiled by the New York Times.

    What’s really remarkable about this is that, over the past decade, Wells Fargo has paid a TOTAL of just $2.03 billion in interest to its retail customers.

    In other words, the fine that Wells Fargo just got hit with last week is more money than they have paid in interest to their retail checking account customers over the last ten years combined!

    Oh yeah… and out of the $3 billion fine, only $500 million will be set aside for the Wells Fargo customers who actually got scammed.

    The rest ($2.5 billion) goes to the government.

    This pretty much tells you everything you need to know about justice in the financial system: Wells Fargo scams customers for years. Then they finally get caught… and it still takes years to sort it all out in the courts.

    By the time they get slapped with the big fine, the government takes most of the money… more money, in fact, than the defrauded customers earned in interest over the previous ten years combined.
  • B
    Brian
    Wells Fargo will pass the cost of this on to the consumer.
  • J
    JasonUpchuck
    Now Wells Fargo robs YOU!
  • K
    KeithK
    As bad as Enron.
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