69.7 F
Fort Worth
Tuesday, September 22, 2020
- Advertisements -
Banking House panel to probe Wells Fargo opening of accounts

House panel to probe Wells Fargo opening of accounts

Other News

Fort Worth police make arrest in Walker cold case from 1974

Fort Worth Police have made an arrest in one of the most baffling and mysterious murders in the city’s recent history: the...

Texas A&M Law professor recalls Ginsburg’s impact

Supreme Court Justice Ruth Bader Ginsburg, a towering women’s rights champion who became the court’s second female justice, died Friday at her home...

Supreme Court justices remember Ginsburg

'I loved her to pieces,' retired Justice Souter says of RBGWASHINGTON (AP) — The remaining eight Supreme Court justices, and two former...

Ginsburg death could have impact on several cases, including Affordable Care laws

By Abby Livingston and Juan Pablo Garnham, The Texas Tribune Sept. 18, 2020 "Ruth...

WASHINGTON (AP) — A House panel is starting an investigation of Wells Fargo amid a growing scandal over its opening of millions of unauthorized accounts.

The House Financial Services Committee on Friday announced an investigation of the allegedly illegal activity by Wells Fargo employees to meet aggressive sales goals as well as the role of federal regulators in the debacle.

California and U.S. regulators fined San Francisco-based Wells Fargo & Co. a combined $185 million last Thursday. The bank says it has refunded to customers $2.6 million in fees charged for products that were sold without authorization.

The committee says it will summon Wells Fargo CEO John Stumpf to testify at a hearing this month. Stumpf and several regulators are appearing before the Senate Banking Committee at a separate hearing on Tuesday.

The House panel also is requesting internal documents from Wells Fargo and the regulators related to the timing and discovery of the sales practices.

The consumer banking giant, which is the biggest U.S. mortgage lender, has fired about 5,300 employees over the sales practices.

Wells Fargo sales employees opened more than 2 million bank and credit card accounts that may have not been authorized by customers, according to the regulators. Money in customers’ accounts was said to have been transferred to these new accounts without their authorization. Debit cards were issued and activated, as well as PINs created, without telling customers.

In some cases, bank employees even created fake email addresses to sign up customers for online banking services, the regulators said.

Wells Fargo said in a statement last week: “We regret and take responsibility for any instances where customers may have received a product that they did not request.”

In a letter Thursday to Stumpf, several Democratic members of the Senate Banking Committee asked whether Wells Fargo’s board will exercise its power to take back compensation paid to senior executives responsible for the sales program.

A top executive, Carrie Tolstedt, who ran the consumer banking division, in July announced her retirement from the bank this year. Tolstedt, 56, is expected to leave with as much as $125 million in salary, stock options and other compensation.

- Advertisements -
- Advertisements -

Latest News

Some Dems, not yet Biden, talk of expanding Supreme Court

By MARK SHERMAN Associated Press WASHINGTON (AP) — The prospect that President Donald Trump and Senate Republicans will fill...

Powell and Mnuchin voice optimism but back more economic aid

By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin...

Fort Worth police partner with MHMR and The Morris Foundation on mental health

The Fort Worth Police Department, with funding from The Morris Foundation and support by My Health My...

Supreme Court vacancy rattles Susan Collins’ Senate race

By ALAN FRAM and DAVID SHARP Associated Press WASHINGTON (AP) — It's so on brand for Sen. Susan Collins...

Fort Worth police make arrest in Walker cold case from 1974

Fort Worth Police have made an arrest in one of the most baffling and mysterious murders in the city’s recent history: the...