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posted by Fnord666 on Friday September 01 2017, @05:23AM   Printer-friendly
from the rewards-and-punishments dept.

Wells Fargo previously admitted that employees opened around 2.1 million unauthorized bank accounts in customers' names. Now that number could rise to 3.5 million:

Nearly a year after Wells Fargo's fraudulent account scandal burst into public view, the bank said it had turned up more than a million additional accounts that customers may not have authorized.

The news set off a fresh wave of criticism from those frustrated by the bank's slow pace in coming clean about its misdeeds. "Every time we get one of these announcements, the pressure rises," said Nancy Bush, a banking industry analyst who runs NAB Research. "How many customers, and how many employees within Wells Fargo, are coming to the conclusion, 'I don't need to be associated with this'?"

The findings brought the number of potentially unauthorized accounts to 3.5 million — a nearly 70 percent increase over the bank's initial estimate.

Wells Fargo agreed last September to pay $185 million to settle three government lawsuits over the bank's creation of sham accounts. Thousands of employees, trying to meet aggressive sales goals, had created accounts in customers' names without their knowledge. Workers who met the bank's sales targets received bonuses — and those who did not risked losing their jobs. At the time, Wells Fargo said that 2.1 million suspect accounts had been opened from 2011 to mid-2015. But it also acknowledged at the time that the problems may have begun earlier, and said it would expand its review to include accounts opened from 2009 to 2016.

Also at NPR, Reuters, and Bloomberg.
Statement from Wells Fargo.

Previously: Wells Fargo Fined Over Unauthorized Accounts
Wells Fargo Likely Hurt Customers' Credit Scores; Labor Department Launches Review


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  • (Score: 0) by Anonymous Coward on Friday September 01 2017, @04:34PM

    by Anonymous Coward on Friday September 01 2017, @04:34PM (#562579)

    If Wells Fargo is the company that your employer has chosen to use to handle your 401-k, you are stuck with them.

    Otherwise (if your 401-k is from a former employer), you can roll over that old 401-k into an IRA at any investment company.
    I strongly recommend Vanguard. Cheap and simple plans. Call them and they will talk you thru the process.