Wells Fargo Reaches $3 Billion Settlement With DOJ And SEC
The settlement is meant to resolve major investigations at both the Justice Department and the Securities and Exchange Commission. However, the settlement does not resolve all regulatory issues that Wells Fargo faces.
One of the conditions is a deferred prosecution agreement, which allows the Justice department to pursue criminal charges in the future. Additionally, there are different regulatory benchmarks that need to be met during the next three years.
Charles Scharf, the current CEO of Wells Fargo, was tasked with dealing with the different scandals that plagued the bank. Essentially, Wells Fargo perpetuated an unhealthy work culture with sales quotas for low-level employees that were not feasible.
As a result, employees felt pressured to open fake accounts, slightly altering the information of other customers and asking friends and family to open unnecessary accounts.
“The conduct at the core of today’s settlements—and the past culture that gave rise to it—are reprehensible and wholly inconsistent with the values on which Wells Fargo was built,” Scharf said in a statement. “We are committing all necessary resources to ensure that nothing like this happens again, while also driving Wells Fargo forward.”