Wells Fargo pays $65 million to settle 'cross-sell' fraud claims with New York

(Reuters) - Wells Fargo & Co will pay $65 million to settle claims that it misled investors about its 'cross-selling' business strategy, the New York Attorney General's office said on Monday. A push by Wells Fargo to get existing customers to buy more of the bank's products, known as 'cross-selling,' was at the centre of a fake customer accounts scandal that has dogged the bank for two years.

Reuters October 23, 2018 01:05:19 IST
Wells Fargo pays $65 million to settle 'cross-sell' fraud claims with New York

Wells Fargo pays 65 million to settle crosssell fraud claims with New York

(Reuters) - Wells Fargo & Co will pay $65 million to settle claims that it misled investors about its "cross-selling" business strategy, the New York Attorney General's office said on Monday.

A push by Wells Fargo to get existing customers to buy more of the bank's products, known as "cross-selling," was at the centre of a fake customer accounts scandal that has dogged the bank for two years.

Wells Fargo failed to disclose to investors that the success of its cross-selling was built on sales practice misconduct, Underwood's office said.

"The misconduct at Wells Fargo was widespread across the bank and at every level of management – impacting both customers and investors who were misled," New York Attorney General Barbara Underwood said in a statement.

The bank, which has paid hundreds of millions of dollars in regulatory fines and settlements related to the scandal, said in a statement it had previously accrued the penalty costs.

Since the sales scandal came to light in 2016, Wells Fargo has overhauled management and is trying to regain trust, including through an ad campaign saying that Wells Fargo was established in 1852 and "re-established" in 2018.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Saumyadeb Chakrabarty and Sai Sachin Ravikumar)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Tesla loses more than combined GM, Ford market value
Business

Tesla loses more than combined GM, Ford market value

By Subrat Patnaik (Reuters) - Tesla Inc shed about $80 billion of its market value on Tuesday, an amount that overshadows the combined value of General Motors Co and Ford Motor Co , after its surprise exclusion from the S&P 500 index. Tesla's shares recorded their worst single-day percentage drop ever and added to the broader sell-off in technology stocks, which have dominated Wall Street's recovery from the coronavirus-driven crash earlier this year. The stock closed 21.06% lower, while fellow electric automaker Nikola Corp jumped more than 40% after General Motors said it was acquiring an 11% stake in the company

Stocks end lower as tech swoon persists, Tesla tumbles
Business

Stocks end lower as tech swoon persists, Tesla tumbles

By Chuck Mikolajczak NEW YORK (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as heavyweight technology names extended their sell-off, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500.