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CFPB slams Wells Fargo with its largest ever fine

Joe Mont | September 8, 2016

What’s a company do after an epic scandal is exposed? For banking giant Wells Fargo, hit with the largest fine ever meted out by the Consumer Financial Protection Bureau, the response includes firing 5,300 employees amid a pledge to redouble its efforts to foster a corporate culture of compliance and ethics.

On Sept. 8, the CFPB fined Wells Fargo Bank, a subsidiary of Wells Fargo & Company, $100 million for what it calls “the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts.” The infractions date back to 2011.

The crux of the allegation: spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their...

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