UNITED STATES (OBSERVATORY NEWS) — The American bank Wells Fargo has reached an agreement with the US authorities, according to which it will pay $ 3 billion to settle charges of large-scale violations.
In this case, we are talking about an agreement with the US Department of Justice and the Securities and Exchange Commission, which agreed to terminate investigations against Wells Fargo in exchange for payment by the bank of compensation and a fine.
At the same time, individual employees of a financial institution may be charged.
Of the $ 3 billion paid, $ 500 million will go to a fund that will be controlled by the US Securities and Exchange Commission. It is from this fund that compensation will be paid to investors who have suffered due to the actions of bank employees.
U.S. authorities accused Wells Fargo Bank employees of massively opening accounts for customers in 2002-2016 without their knowledge, and also imposing on them services that they did not need in order to receive bonuses for fulfilling the sales plan.
In recent years, the bank has also been repeatedly convicted of serious violations.
So, in December 2018, Wells Fargo paid $ 575 million at the request of the U.S. authorities, and in April of the same year, federal regulators collected $ 1 billion from the bank for fraud in the car and mortgage market.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
Contact us: [email protected]