Wells Fargo to end sales goals for retail bankers
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
The sign outside the Wells Fargo & Co. bank in downtown Denver April 13, 2016. REUTERS/Rick Wilking
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
(Reuters) - Wells Fargo & Co (NYSE: WFC), the largest U.S. bank by market capitalization, said on Tuesday it would eliminate all product sales goals in retail banking, starting next year.
The move comes days after the Consumer Financial Protection Bureau (CFPB) and two other regulators fined the bank $185 million over abusive sales practices.
The bank paid another $5 million to customers for creating more than two million fake accounts for products like credit and debit cards to meet aggressive sales targets.
Customers should know that Wells Fargo retail bankers are always focused on their best interests, Chief Executive John Stumpf said in a statement on Tuesday.
The enforcement action caught the attention of U.S. presidential candidate Hillary Clinton, who on Friday applauded the CFPB, censuring Wells Fargo for what she called "outrageous behavior."
On Monday, five lawmakers wrote a letter to U.S. Senate Banking Committee Chairman Richard Shelby calling for an investigation.
Credit rating agency Moody's Investors Service also commented, saying the "embarrassing episode" would have a negative impact on Wells Fargo's outstanding debt.
Wells Fargo said it had fired 5,300 employees involved in the sales practices described by the settlement.
(Reporting by Richa Naidu in Bengaluru; Editing by Sriraj Kalluvila)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Wells Fargo (WFC) Funds President Rabusch Said to Retire
- Wells Fargo Housing Foundation Announces $6 Million in Grants
- Peru protests risk halting one of world's biggest copper mines: MMG