In 2015 it was revealed that Wells Fargo had been creating fake deposit and credit accounts under customer’s names without their knowledge or consent. Specifically, it was reported that Wells Fargo had created a total of 2.1 million fake accounts (later amended to 3.5 million in 2017). Ever since this incident consumer trust in Wells Fargo has deteriorated over years. Most recently, the Federal Reserve Board fined Wells Fargo $67.8 million for overly risky practices regarding oversight of its subsidiary banks. Wells Fargo’s lack of oversight enabled foreign banks to process approximately $532 million in transactions between 2010 to 2015, which is a direct violation of U.S. sanctions regulations. The U.S. Department of the Treasury’s Office of Foreign Asset Control will also be imposing its own separate fine on Wells Fargo. Along with the Federal Reserve board, the total fine is estimated to be around $97.8 million.
Article: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20230330a.htm
Insane! I mean that is a huge chunk of change. It amazes me that after all of this they are still such a big name brand and continue to have trust in their brand... We never know what they could do next, which is quite scary!
ReplyDeleteIt is insane that such a well known company that you see everywhere could be acting this way. Definitely deserved the hefty fine.
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