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:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.