Business Markets

Following the latest scandal, shares of Wells Fargo slips by 1.4 percent

Earlier on Thursday, May 18th, The Wall Street Journal reported that some employees of Wells Fargo have gone on to alter or add false information on documents associated to corporate clients last year and early this year.

As per the report, employees were advised to do so in an attempt of complying with a regulatory consent order regarding anti-money laundering controls.

The report further consisted of information given by individuals familiar with the matter, it also revealed that the employees in the wholesale division added or altered the information without asking the permission of customers. Social Security numbers, dates of birth and addresses were also altered in the process.

The impromptu behaviour of the employees caught the attention of the bank in recent months, the Wall Street Journal further reported.

The bank has already reported the fraudulent behaviour to the Office of the Comptroller of the Currency, which is probing the issue, as per reported by the newspaper.

This information had a direct impact on the shares of Wells as it fell by 1.4 percent yesterday (May 18th).

Commenting on this matter a Wells Fargo spokeswoman stated: “Documents that were procured for internal purposes were involved in this matter. This did not impact any customer in a negative manner, nor was any product or service sold due to it, and also the data remained in the company itself.”

The spokesperson further added, “We cannot give any comment directly regarding regulatory issues, however, I would like to add that over the past few months we have assembled more vigorous internal processes that strengthen our values, and on the off chance that we discover any circumstances that are in violation of those values, we would take a swift action to rectify that issue.”

The San Francisco-based bank has still not been able to fully recover from the damage caused by the fake accounts scandal that erupted a couple of years ago.

Apparently, this scandal had employees of its retail banking division creating fake accounts in clients’ names without them being aware of it, this was done so as to meet its aggressive sales goals. Ever since this scandal, glitches have been discovered in its auto lending, mortgage, and wealth management divisions.

According to Wells Fargo, investigations concerning its sales rehearse are at different stages and as a result, the Department of Justice, the Securities and Exchange Commission(SEC), the Department of Labour and state attorneys general and prosecutors are all looking into the issue.

About the author

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Raj Hirvate

Raj is a college dropout. But don’t let that fool you his technical abilities are far more impressive to be judged on a sheet of paper he is a digital marketing professional and a tech expert. Being into the world of digital marketing learning from his colleagues he began researching on stocks and has been investing from the age of 18. He and Safdar are huge anime fans.

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