Later that month Wells Fargo said it would stop unreasonable sales goals. In the aftermath of this scandal, then-CEO John Stumpf was fired and had $41 million in compensation clawed back. This kind of sales pressure was known to cause similar issues at large banks, academic research had shown. The bank had fired 5,300 low-level employees for creating these accounts under extreme sales pressure. ![]() ![]() Wells Fargo’s public woes kicked off with $185 million in fines from the CFPB, the Office of the Comptroller of the Currency, and the City and County of Los Angeles for the creation of 1.5 million fake deposit accounts and over 500,000 fake credit cards, all in customer names and without their permission. For the ongoing ones, of course, some may end in the bank’s favor. It can be difficult to keep track of everything. ![]() Just last week, Wells Fargo disclosed that a software glitch accidentally denied nearly 400 customers the ability to modify their mortgages, which led to the bank foreclosing on their homes.
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