Wells Fargo reportedly laid off 700 employees in its commercial banking division last month as part of a multi-billion dollar cost-cutting measure that could impact tens of thousands of the bank's employees. Transfer from LAIF to Bank of the West for Payroll & Vendor Checks. That's how much revenue Wells Fargo's community banking segment pulled in for the firm's third quarter, accounting for nearly 60% of the bank's total revenue. In 2018, Wells Fargo settled related charges with New York's Attorney General for $65 million, and this February, Wells Fargo agreed to pay the SEC $500 million for misleading investors as part of a massive $3 billion settlement with the Department of Justice. In 2022, 324 financial advisors moved from Wells Fargo Clearing Services to FiNet, according to InvestmentNews data, while 273 made that change in the first half of this year alone. The piece sparked an investigation by the Times that detailed how bank employees would order credit cards for customers without their permission and forge client signatures, among other things. Key BackgroundĪs noted in the complaint against Stumpf, the sales misconduct in Wells Fargo's community banking segment was widespread and varied and came to public light in October 2013 after a Los Angeles Times report revealed that Wells Fargo fired about 30 employees in a Los Angeles-area office who were accused of cheating on sales goals. "The community bank onerous sales goals and accompanying management pressure led many of the employees to engage in the misconduct." At the height of the misconduct, the complaint notes that more than 1,000 employees were being fired annually for their involvement. Learn more Talk to your advisor or, if you don’t have one, schedule a call with one of our investment professionals. The security of the information you give us is important. In June 2018, Wells Fargo’s chief executive officer, Tim Sloan, received a 4.6m raise, putting his annual total compensation at 17.6m, 564 times more than a full-time bank worker who makes 15. Watch your email for next month’s edition. "For several years, Wells Fargo bankers sold customers products and accounts that were never used by customers, as well as unwanted and unauthorized products, contrary to Wells Fargo’s purportedly needs-based cross-selling strategy," the SEC's complaint against Stumpf, 67, reads. The nineteen banks in San Francisco struggled to stay open, and Adams & Company failed, leaving Wells Fargo as the dominant express and banking. Thank you for subscribing to our monthly email newsletter. Wells Fargo shares were virtually flat in Friday trading and are down about 55% for the year amid a broader market rout for financial stocks.
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