Wells Fargo reaches $3bn fake accounts settlement

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Wells Fargo, a major US bank, has agreed to pay $3bn (£2.3bn) to resolve a government investigation into its sales practices, including opening millions of fake customer accounts. The bank admitted it had wrongly collected millions of dollars in fees, misused customer information and harmed the credit rating of customers. The settlement comes about four years after the scandal first erupted. It has already forced out two chief executives and led to hefty fines. Since 2018, Wells Fargo has been operating under an order from the US Federal Reserve that limits its growth. Last month, former chief executive John Stumpf agreed to pay $17.5m to settle charges, in a rare example of a bank executive being personally punished for failing to stop misconduct.

Source: https://www.bbc.com/news/business-51594117


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