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Wells Fargo Fires 70 Amid Insurance Scandal

Wells Fargo & Co., the lender struggling to overcome a fake-accounts scandal in its community bank, said the division’s new leader is cutting about 70 senior executive jobs...
August 1, 2017

Wells Fargo & Co., the lender struggling to overcome a fake-accounts scandal in its community bank, said the division’s new leader is cutting about 70 senior executive jobs. The community-banking division, which houses the retail bank, has generated weaker profit since September when Wells Fargo was fined $185 million because employees had been opening accounts for more than a half decade without customers’ permission.  Last week, the firm’s consumer operations revealed another scandal, announcing that the bank had charged as many as 500,000 customers for auto insurance they didn’t need.

The retail bank will continue to have 12 regional leaders, the same number as before the sales scandal, reports Bloomberg. All but one of the lead executives are the same. The insurance scandal has already drawn one class-action lawsuit, filed Sunday in San Francisco federal court, with lawyers alleging nearly 250,000 vehicles were repossessed as a result of the scheme.

 

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