• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceGlobal 500

Wells Fargo’s Sales Scandal Just Got Bigger

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
November 3, 2016, 10:10 PM ET
Protest Against Wells Fargo & Co. As Senators Urge DOJ To Focus On Executives In Probe
Demonstrators hold signs while protesting inside the lobby of the Wells Fargo & Co. office in New York, U.S., on Thursday, Oct. 6, 2016. Wells Fargo & Co.'s senior executives should be investigated by U.S. prosecutors over the bank's unauthorized creation of customer accounts, Democrats in the U.S. Senate told Attorney General Loretta Lynch.John Taggart—Bloomberg, via Getty Images

Wells Fargo (WFC) 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 in penalties and $5 million to customers for opening up to 2 million deposit and credit-card accounts in customers’ names without their permission.

The San Francisco-based bank said it fired 5,300 workers for improper sales practices over a period of five years.

Reuters reported in October that thousands of small business customers have also been affected.

“It would appear that Wells Fargo concealed key information from regulators that may have revealed the bank’s misdeeds long before the September 2016 settlement,” the senators wrote, requesting more information.

For more on the Wells Fargo scandal, watch Fortune’s video:

The Financial Industry Regulatory Authority (FINRA), which regulates brokerages and securities dealers, told congressional staff that it had received dismissal documents known as Form U5s for more than 600 of those fired Wells Fargo employees. However, only 207 of them contained details indicating they were fired for practices that led to bogus accounts.

The incomplete U5 filings may have deprived regulators of information that could have allowed them to uncover and stop the “illegal activity” sooner, the senators said.

FINRA “takes seriously the integrity and accuracy of all filings made by firms,” spokeswoman Nancy Condon said in an emailed response.

She noted that FINRA last week launched a review of sales programs for all firms it oversees.

Wells Fargo spokeswoman Jennifer Greeson Dunn said multiple investigations were underway, including an internal review. The bank has been working for years to stop wrongful sales practices, and is taking steps to repair the damage, she said.

“We acknowledge we could have acted sooner and more aggressively,” Greeson Dunn said.

At a conference on Thursday, Sloan said he had no knowledge of issues outside the retail bank.

Wells Fargo’s retail branches also include employees from other businesses who offer products besides bank accounts.

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on March 27, 2026
By Glen Luke FlanaganMarch 27, 2026
31 minutes ago
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, March 27, 2026: Lock in up to up to 4.20%
By Glen Luke FlanaganMarch 27, 2026
31 minutes ago
MagazineAirbnb
Paris is ground zero for Europe’s backlash against illegal Airbnbs
By Vivienne WaltMarch 27, 2026
32 minutes ago
Jim Fitterling, chief executive officer of Dow Inc., at the CERAWeek by S&P Global conference in Houston, Texas, US, on Thursday, March 26, 2026. The event convenes more than 10,000 participants from over 2,350 companies across 89 countries for dialogue on the agenda ahead as the world enters a new era of energy transition. Photographer: F. Carter Smith/Bloomberg via Getty Images
Energychemicals
Dow CEO warns petrochemical shortage from Iran war could fuel inflation for rest of the year
By Jordan BlumMarch 27, 2026
3 hours ago
Personal FinanceReal Estate
Current ARM mortgage rates report for March 27, 2026
By Glen Luke FlanaganMarch 27, 2026
4 hours ago
Personal FinanceReal Estate
Current refi mortgage rates report for March 27, 2026
By Glen Luke FlanaganMarch 27, 2026
4 hours ago

Most Popular

C-Suite
'I didn’t want anybody shooting me': Five Guys CEO gave away $1.5 million bonus to employees over botched BOGO burger birthday celebration
By Fortune EditorsMarch 25, 2026
2 days ago
Environment
Vail Resorts CEO says it’s time to think beyond the $1,000 ski pass that helped build the empire
By Fortune EditorsMarch 26, 2026
1 day ago
Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
3 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
4 days ago
Personal Finance
Current price of gold as of March 25, 2026
By Fortune EditorsMarch 25, 2026
2 days ago
Economy
Social Security insolvency: How a six-figure cap to flatten benefits for the ultrawealthy could buy the program 7 critical years
By Fortune EditorsMarch 26, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.