Wells Fargo Agrees to $65 Million Settlement With N.Y. Attorney General Over Cross-Selling
October 22 2018 - 2:08PM
Dow Jones News
By Allison Prang
Wells Fargo & Co. has agreed to pay a $65 million fine to
settle claims brought by the New York Attorney General's office
that the bank misled investors about its cross-selling tactics.
The fine is the most-recent penalty the bank has faced over its
sales practice scandal, where bank employees made as many as 3.5
million "potentially unauthorized" accounts to try to hit sales
goals.
"Wells Fargo failed to disclose to investors that the success of
its cross-sell efforts was built on sales practice misconduct at
the bank," the attorney general's office said in prepared remarks
Monday.
The attorney general's office said it is still looking at Wells
Fargo's "illegal business practices of opening millions of
unauthorized accounts and enrolling consumers in services without
their knowledge or consent."
Wells said in its own statement that it is "pleased to reach the
agreement." The company didn't admit liability and said "the
settlement costs have been previously accrued."
Shares of Wells fell 2.2% on Monday afternoon when the broader
market was less than 1% lower.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 22, 2018 14:53 ET (18:53 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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