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Corporate Events

Wells Fargo Fake Accounts Scandal

Corporate Fraud and Financial Scandals

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Regulators revealed in September 2016 that Wells Fargo employees, under pressure to meet aggressive sales quotas, had opened millions of unauthorized bank and credit card accounts in customers' names without their consent over several years. The bank paid a then-record 185 million dollar initial fine, later followed by billions more in additional settlements and a Federal Reserve-imposed asset cap, and CEO John Stumpf resigned amid Congressional hearings and public outrage over the scheme.

Facts
Event Type
Financial fraud scandal 1
Event Year
2016 1
Cross-Tradition Connections

Associated With

Finance, Practice Disciplines

The 2016 revelation that Wells Fargo employees opened millions of unauthorized accounts to meet sales targets exposed failures in financial-services internal controls and incentive design.

Wells Fargo & Company is the bank whose branch employees opened millions of unauthorized accounts, revealed in this 2016 scandal.

Sources
1. Wikipedia, Wells Fargo Cross-Selling Scandal
WikipediaLead section, opening paragraph
Quote, Lead section, opening paragraph
The Wells Fargo cross-selling scandal was caused by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent or knowledge due to aggressive internal sales goals at Wells Fargo.
View the Source
1. Wikipedia, Wells Fargo Cross-Selling Scandal
WikipediaAssociated With: Wells Fargo & CompanyView the Source
1. Wikipedia, Wells Fargo Cross-Selling Scandal
WikipediaAssociated With: FinanceView the Source
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