Wells Fargo Warns a Deeper Review May Uncover More Bogus Accounts

  • Also says banks used its tech for trade in sanctioned nations
  • It alerted authorities and is cooperating with DOJ inquiry

Wells Fargo & Co., seeking to resolve a bogus-account scandal that shook the company last year, warned investors it may find more victims. Separately, it said U.S. authorities are examining whether other firms abused its technology to violate international sanctions.

The bank has expanded a review into how employees pitched accounts and other products to customers, looking at a broader time frame, and is now refining its methodology to identify any improper sales, the company said in an annual regulatory filing. “This work could lead to, among other things, an increase in the identified number of potentially impacted customers,” it said.

In the other matter, Wells Fargo said it discovered overseas banks were using its software tools to help finance trade with countries and entities subject to U.S. sanctions. Wells Fargo said it alerted the Treasury Department’s Office of Foreign Assets Control and is cooperating with a Justice Department inquiry. It doesn’t appear that any of the transactions flowed through accounts at the bank, it said in the filing.

Read on.

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One response to “Wells Fargo Warns a Deeper Review May Uncover More Bogus Accounts

  1. Pingback: Wells Fargo Warns a Deeper Review May Uncover More Bogus Accounts - Securitization & Mortgage Audit

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