Wells Fargo : sales scandal extends to brokerage unit – U.S. senators

More trouble for Wells Fargo…

Wells Fargo & Co fired hundreds of brokerage employees for improper sales practices, three U.S. senators said on Thursday, widening the scope of a scandal which the fourth-largest U.S. bank has so far characterized as a retail banking problem.

In a letter to Wells Fargo Chief Executive Tim Sloan, Senators Elizabeth Warren, Ron Wyden and Robert Menendez questioned the bank’s disclosures about those employees’ dismissals in required regulatory filings.

The letter is the first indication that customers of the brokerage business, known as Wells Fargo Advisors, may also have been affected.

Wells Fargo said in September it would pay $185 million (148 million pounds) in penalties and $5 million to customers for opening up to 2 million deposit and credit-card accounts in customers’ names without their permission.

Read on.

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