US lawmakers to probe Wells Fargo over fake accounts

Author: app/afp

WASHINGTON: The powerful Financial Services Committee of the US House of Representatives announced on Friday they will investigate allegations that Wells Fargo fraudulently opened millions of unauthorised customer accounts.

Wells Fargo, the second largest US bank by market value, this month paid $185 million in fines as it admitted that employees had boosted sales figures by opening some two million deposit and credit accounts in customers’ names without their knowledge. Bank staff did so, regulators said, to generate millions of dollars in improper fees from the accounts and earn performance bonuses for themselves.

The bank said last week it had fired 5,300 employees connected to the problem, but questions remain over whether bank executives may have escaped unpunished. The House committee said that it would summon John Stumpf, the bank’s chairman and CEO, to testify this month.

“In addition, the committee is requesting that Wells Fargo and regulators provide internal documents relating to the discovery and timing of these practices, and is asking company officials to appear for transcribed interviews,” the committee said in a statement. Others called for transcribed interviews will include the bank’s chief financial officer, chief operating office and chief risk officer, the committee said. The Wall Street Journal reported on Wednesday that federal prosecutors had also opened a probe.

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