Wells Fargo Warns Of More Potential Scandal Victims

Wells Fargo Warns Of More Potential Scandal Victims

The bank, which is the nation’s third-largest lender, had said 2.1 million customers could have had checking and credit card accounts opened in their name without their knowledge over the course of several years.

The company said it was expanded its review to identify any customers who had been impacted by the scandal.

In a 10-K filing with the U.S. Securities and Exchange Commission, the search goes back to 2009 until September 2016. A continuous look of customer data could turn up additional affected customers. In another filing, the bank said the review findings should be released before the yearly meeting set for April 25.
The bank settled the matter for $185 million in September, noting how many customers had been affected. This lead to various internal reviews, lawsuits and government investigations. It damaged the bank’s reputation.

Many employees were terminated over accusations of customers abuses, which were instigated from the aggressive sales targets managers had enforced. John Stumpf was the CEO for Wells at the time and left the bank after the scandal.

Since then, the company has worked hard to repair the damage was done – customers taking a hit on the credit scores or being charged for fees they didn’t really owe.
The company, which is based in San Francisco, said no other remediation efforts would have a major financial impact but said the review could result in more regulatory and legal proceedings and other negative outcomes.

Eight senior-level executives will not be getting their 2016 cash bonuses. Four mid-level executives were also fired from their jobs during the probe.

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