Wells Fargo reportedly faces probe by federal prosecutors: ConsumerAffairs.com
Moneylife Digital Team 16 September 2016
Various media outlets are citing anonymous sources, which say that Federal Bureau of Investigation (FBI) and federal prosecutors have begun an investigation into the matter, which burst into public view this week with the announcement that Wells Fargo was paying $185 million in fines to federal and Los Angeles regulators, says ConsumerAffairs.com in a report.
In the report, Mark Huffman from ConsumerAffairs.com, says, the dust has yet to settle from Wells Fargo's admission that thousands of its employees opened bogus checking and credit card accounts in order to hit sales goals. You might say it is heading into a dust storm.
"The bank said it had fired 5,300 employees who allegedly opened hundreds of thousands of deposit and credit card accounts for consumers without those consumers' knowledge or permission, presumably to meet strict sales goals. Neither the FBI nor the bank would comment on reports of a potential criminal investigation, but that is normal procedure. It would be highly unusual if either party did," the report says.
Congress getting into the act
However, the Senate Banking Committee has scheduled a public hearing for next week in which it will press Wells Fargo CEO John Stumpf to explain what happened and how. The committee will also hear from officials of the Office of the Comptroller of the Currency, Consumer Financial Protection Bureau (CFPB), and Los Angeles City Attorney's Office, the agencies that... Continue Reading…
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