Wells Fargo & CO W/I (NYSE:WFC*)
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1 Month : From Nov 2018 to Dec 2018
By Emily Glazer
Wells Fargo & Co. is firing around three dozen district managers for oversight failures related to a sales scandal that erupted in its retail bank more than two years ago, according to people familiar with the matter.
Senior executives, including consumer banking head Mary Mack, have briefed the Office of the Comptroller of the Currency on the firings, one of the people said. The bank has sought to reassure regulators it is fixing problems that have emerged throughout the bank following the sales-practices scandal.
A Wells Fargo spokeswoman declined to comment. An OCC spokesman declined to comment.
The firings mark the first wave of district manager terminations following Wells Fargo's settlement with regulators in September 2016 related to improper sales practices. Since then, federal and state investigations have cropped up in every one of the banks major business units.
District managers at Wells Fargo typically oversee anywhere from five to 15 retail bank branches, depending on the area, the people said. They largely were spared as the company fired some 5,300 employees related to perhaps millions of fake accounts that were opened in pursuit of lofty sales goals.
In recent weeks, lawyers for Wells Fargo have questioned dozens of the managers about activities or documents related to sales practices, in some cases going back more than 10 years, according to people familiar with the matter. Some managers, including bank veterans of a decade or more, were asked about high sales numbers following a bank-approved "Jump into January" sales program, one of the people said.
Some managers also were asked about human-resources complaints that the bank already has investigated, the person added.
In 2017, Ms. Mack took steps to reorganize the retail bank, including restructuring the regions in the western half of the U.S. and rearranging executive positions. Wells Fargo has said it plans to reduce its retail bank network to about 5,000 branches by the end of 2020 through consolidations and divestitures.
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(END) Dow Jones Newswires
December 05, 2018 12:48 ET (17:48 GMT)
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