Wells Fargo has been fined $185 million for illegally opening accounts to boost sales targets.
The cash will go to regulators while Wells Fargo will also hand back $5 million to customers.
The US Consumer Financial Protection Bureau (CSFB) accused the US’ biggest bank of “widespread illegal practice” around account openings, sales targets and compensation incentives.
Wells Fargo said in a statement: “We regret instances where customers may have received a product that they did not request.”
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The CSFB announced the fine and said Wells Fargo must also hire an independent consultant for a review.
“Because of the severity of these violations, Wells Fargo is paying the largest penalty the CFPB has ever imposed,” said CSFB first director Richard Cordray.
The CSFB investigation found that to meet sales targets and possibly gain more compensation bank workers had “illegally” signed up customers for more than 2 million deposit and credit-card accounts.
Employees also issued debit cards without customers’ knowledge, even creating fake email addresses to unknowingly sign up consumers to online-banking services, the CSFB said.
Wells Fargo said it set up an independent review of its sales practices dating back to 2011 and had taken “disciplinary actions, including terminations of managers and team members who acted counter to our values”.
JPMorgan Chase has reported a 7.3% drop in profit for Q4 2013 after legal costs relating to the fraudster Bernard Madoff dented earnings gains.
Net income fell 7.3% for the fourth quarter to $5.3 billion, from $5.7 billion in the final quarter of 2012.
JPMorgan said one-off items had damaged income after tax by $1.1 billion.
Separately, Wells Fargo, the US’s biggest mortgage lender, said fourth quarter profits rose 11% to $5.4 billion.
JPMorgan was Bernard Madoff’s principal bank and their business relationship dated back to the 1980s
Wells Fargo cut thousands of jobs in the second half of the year in order to boost earnings.
JPMorgan was Bernard Madoff’s principal bank and their business relationship dated back to the 1980s.
Bernard Madoff, 75, is currently serving a 150-year prison sentence in the US after being found guilty of defrauding investors.
Last week, JPMorgan agreed to pay $2.6 billion to settle government and private claims resulting from its handling of Bernard Madoff accounts. The bank was accused of not reporting its concerns about Bernard Madoff’s investment scheme.
Drake’s fans left Philadelphia’s Wells Fargo Center early Saturday night after the hip hop star’s concert was postponed at the last minute.
Drake’s concert was scheduled to begin at 7 p.m. It wasn’t until around 8:30 p.m. however that the concertgoers were told the performance was canceled. According to Rebecca Goodman, a spokeswoman for the Wells Fargo Center, the concert was postponed due to an “unexpected technical issue.”
Rebecca Goodman says Drake’s Philadelphia concert will now take place on Wednesday, December 18.
Drake’s Philadelphia concert was rescheduled for December 18
“Drake, the Wells Fargo Center, Live Nation, and the entire team behind tonight’s show want to ensure fans will experience an unforgettable live music event and have decided to move the concert to a new date,” she wrote in a released statement.
“All tickets and original parking receipts from tonight’s show will be honored at the Wednesday, December 18 date.”
Saturday’s event was supposed to be the second concert of Drake’s Would You Like a Tour?. The tour kicked off Friday night at Pittsburgh’s Consol Energy Center.
Drake’s third studio album Nothing Was the Same was released on September 24. The album debuted at number one on the US Billboard 200 chart and so far has sold over 880,000 copies.
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