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O-ho the Wells Fargo Wagon is a-comin’ down the street, creating fake deposit and credit card accounts.
(Bloomberg) — Wells Fargo & Co. said employees created two-thirds more bogus accounts than initially thought, a sign the bank is still struggling to move past a scandal that sparked record fines and congressional investigations.
An outside review found an additional 1.4 million potentially unauthorized deposit and credit-card accounts opened when the bank was encouraging employees to sell multiple products to retail customers, bringing the total to about 3.5 million, according to a statement Thursday from the San Francisco-based firm. The revised estimate covers January 2009 to September 2016, almost twice as long as the period examined in the initial review.
The disclosure of even more fraudulent accounts threatens to catapult Wells Fargo back into the political crosshairs just as Congress returns Sept. 5 from its summer recess. The scandal came to light almost a year ago after regulators slapped Wells Fargo with fines of $185 million over its sales practices, prompting congressional hearings and resulting in the bank naming new leaders, clawing back executives’ pay and beginning an overhaul of its retail division.
Unlike the film “The Music Man,” no one seems to care about the news as the DJIA opened up on the good GDP report from yesterday while Wells Fargo opened down, but rebounded.
Another product that the Wells Fargo wagon isn’t delivering is mortgage originations since 2013.
I wonder if these people are the fake accounts created by Wells Fargo employees?