US senators question Wells Fargo’s dismissal of broker employees
New York — Wells Fargo fired hundreds of brokerage employees for improper sales practices, three US senators said on Thursday, widening the scope of a scandal, which the fourth-largest US bank has so far characterised as a retail banking problem. In a letter to Wells Fargo CEO Tim Sloan, senators Elizabeth Warren, Ron Wyden and Robert Menendez questioned the bank’s disclosures about those employees’ dismissals, in required regulatory filings. The letter is the first indication that customers of the brokerage business, known as Wells Fargo Advisors, may also have been affected. Wells Fargo said in September it would pay $185m in penalties and $5m to customers for opening up to two-million deposit and credit-card accounts in customers’ names without their permission. The San Francisco-based bank said it fired 5,300 workers for improper sales practices over a period of five years. Reuters reported in October that thousands of small business customers had also been affected. "It would a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.