Federal Probe, Shareholders Loom In Wells Fargo Scandal
Wednesday, March 15, 2017
Wells Fargo is cleaning up the mess brought on by the bogus account scandal. They've taken steps to punish those involved and will soon release the results of their own investigation. Mike Collins gets an update from banking reporters.
Six months after news of bogus accounts at Wells Fargo surfaced, the bank is still trying to leave the scandal in the dust. High-ranking managers have been fired, while other brass, including the new CEO, have taken a compensation hit.
The Charlotte-based executive overseeing reforms in the banking unit at the center of the fake accounts says those changes are taking hold, but more work remains.
Meanwhile, the federal government still looms in the wagon’s rearview mirror. Prosecutors, including Justice Department officials in Charlotte, want to know if executives withheld details of the fake accounts from the bank’s board and its regulators as the size of the scandal grew. And Wells now says the number of customers said to be involved could be more than the initial figure of up to 2.1 million.
The bank says it will release findings of its own investigation in late April at its shareholders meeting – the first since the scandal broke.
Will more shoes drop? Could there be criminal charges?
Deon Roberts, banking reporter, The Charlotte Observer (@DeonERoberts)
Emily Glazer, banking reporter, The Wall Street Journal (@EmilyGlazerWSJ)