Wells Fargo Exec Said Fake Account Scandal Wouldn’t Put Much of a Dent in Q3 Profits
Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.
Wells Fargo's chief financial officer said efforts by states to penalize its business over an unauthorized-accounts scandal would not affect third-quarter earnings "much", the Wall Street Journal reported, citing a recording of an internal call.
John Shrewsberry was recorded as saying the bank would only take "some legal set-asides" but publicizing this "might incentivize people to do more, to make it tougher on Wells Fargo ...," the Journal reported.
The hour-long call with 500 senior Wells Fargo executives took place on Monday and was intended to lay out the bank's strategy to move past the scandal, the newspaper reported.
Wells Fargo representatives were not immediately available for comment.
Read More: Wells Fargo Employees Claim They Were Fired for Reporting "Gaming" of Sales Quotas
The bank has been under pressure to show that it is ready to make amends and hold management accountable after government investigations revealed that some of its employees had opened as many as 2 million accounts without customers' knowledge or permission in order to meet sales targets.
Executives were also recorded as saying that growth in Wells Fargo's new retail banking business would likely decline due to the scandal, the Journal reported.
Reporting by Sruthi Shankar and Nikhil Subba
