Wells Fargo has agreed to pay $3 billion to settle claims related to its creation of millions of fake accounts to meet sales goals, including $500 million that will be returned to investors, the Securities and Exchange Commission said Friday.
From 2002 to 2016, Wells Fargo opened millions of financial accounts that were unauthorized or fraudulent. Wells Fargo also pressured customers to buy products they didn’t need, the SEC said. The company agreed to not commit the violations in the future and pay a $500 million civil penalty, which the SEC will distribute to investors.
Wells Fargo also said it has eliminated all product-based sales goals, restructured its compensation based on customer outcomes and strengthened customer consent and oversight systems.
You can thank Liz Warren and friends for that.
Nothing new here, banks have been doing this for years. When I worked for National City Bank in the mid-1990s, we were incentivized to open accounts/services for customers without them knowing it.
They should be put out of business
I wonder how much $3 billion will hurt them. I know that is more money than I can fathom. I guess it depends on what their net income. Hey, maybe they can use this as a tax write off.
A drop in the bucket. Someone should be sitting in a cell.
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