Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Culture Tips: Transforming a 150-Year-Old Mutual
  • Exclude It, Harness It, Get Greedy: Insurers' AI Playbook
  • Ranking Industry AI Talent, Maturity Leaders
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
Deepest Drilling Study Ever Provides Insight into Deadly Japan 2011 Tsunami
Red Sea War Insurance Costs Rise After Houthi Blockade
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Rising Pro Boxer Killed While Riding Bicycle in Bizarre Texas Crash
Q2 Net Income at Travelers Soars 46% on Less Catastrophes, Favorable Reserves

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
The $400,000 Chief of Staff Is the CEO’s Secret Weapon in the AI Age
Why Consistency Beats Creativity in Insurance Marketing
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
Raised on Breaches, Digital Natives Think Differently About Cyber Risk
FDA Walks Back Positive Lab Test in Lettuce Cyclospora Outbreak
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
NAIC Says Data Taken in Hack Has Been Published Online
Kim and Allen Lead Voting in California Insurance Commissioner Primary
Ranking: Who Are the Insurance Industry’s AI Talent, Maturity Leaders?
Travelers Builds Insurance-Specific LLM
The $400,000 Chief of Staff Is the CEO’s Secret Weapon in the AI Age
Four Insurers Join Ward’s Annual Top 50 P/C Ranking for 2026

See all Top 50

Beyond the Weather News Bulletins: How Insurers Can Improve NatCat Responses
Deep Dive: Understanding Data Center Perils
Reframing Like a Fox: How Insurance Leaders Can Catch Strategic Drift Before It Compounds
The Price of Loyalty: How Higher Premiums Are Reshaping Carrier Retention

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

Wells Fargo Settles Phony Bank Account Scandal for $142M

Print Email
June 15, 2018 by Aparajita Saxena

Wells Fargo & Co said on Friday a district court in California approved a $142 million class-action settlement to compensate customers who were affected by a sales scandal related to the opening of phony bank accounts.

The United States’ fourth biggest bank is dealing steadily with the fallout of two years of investigations, agreeing in April to pay $1 billion to settle with regulators who say it layered insurance on hundreds of thousands of drivers and routinely hit homebuyers with excessive fees.

Last month, the bank also agreed to pay $480 million to resolve a securities fraud lawsuit filed with the District Court for the Northern District of California which alleged the bank made certain misstatements and omissions in disclosures related to its sales practices.

Chief Executive Officer Tim Sloan said Friday’s announcement was “a significant step forward in making things right for our customers and restoring trust all of Wells Fargo’s stakeholders.”

The settlement sets aside funds for compensating customers for whom the bank opened consumer or small business accounts, credit cards or lines of credit without their knowledge between 2002 and April 2017.

Customers have until July 7 to claim.

Announcing the settlement with regulators in August, the bank also said that the mortgage and auto programs together ensnared more than 600,000 customers and would require nearly $300 million in refunds.

Analysts worry the scandal has hurt Wells Fargo both by distracting executives with investigations and lawsuits and through its impact on the bank’s public image.

In February, the U.S. Federal Reserve imposed a consent order on Wells that restricted it to grow assets beyond the $1.95 trillion it had at the end of last year “until it sufficiently improves its governance and controls.”

Wells Chief Executive Officer Tim Sloan, since then, has reassured shareholders numerous times that the bank was stable and “open for business.”

Employees have also sought to downplay the scandal’s impact on profitability or market share, and have said that few customers have left the bank.

Wells Fargo’s shares were marginally higher in early trade on Friday while those in other leading U.S. banks fell.

Copyright 2026 Reuters. Click for restrictions.
Print Email
Claims / LegalClaims & ReservingCommercial LinesGlobal EconomyLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Ranking: Who Are the Insurance Industry’s AI Talent, Maturity Leaders?
Wendy’s, Chipotle Not Affected by Cyclosporiasis Outbreak
AI Adoption Continues, But 70% Want More Training: SMB Survey
Executives on the Move at SiriusPoint, Canopius Group, Badger Mutual

Related Articles

Wells Fargo Reportedly Risks Record Fine From U.S. Consumer Watchdog for Various Abuses
Wells Fargo Will Fork Over $2.09B to Resolve Longstanding U.S. Mortgage Probe
Judge Rejects Wells Fargo Bid to End Predatory Lending Lawsuit
Wells Fargo Will Pay $480M to Resolve Fake-Accounts Lawsuit
Wells Fargo Suit Alleges Bank Encouraged Use of Hidden Fees in Finance Programs
Wells Fargo, Ex-CEO Fail to Squash Shareholder Lawsuit Over Fake Accounts
Wells Fargo Risks Calif. Suspension of Licenses Over Insurance Sales Practice Controversy
Wells Fargo Could Get $1B Fine to Resolve Auto Insurance, Mortgage Lending Abuses

Latest Magazine

Carrier Management magazine
View All

Research & Whitepapers

Free Newsletter

NewsletterSign up to receive daily news!

Features

  • Raised on Breaches, Digital Natives Think Differently About Cyber Risk
  • Beyond the Weather News Bulletins: How Insurers Can Improve NatCat Responses
  • Deep Dive: Understanding Data Center Perils
  • Why Consistency Beats Creativity in Insurance Marketing
  • Reframing Like a Fox: How Insurance Leaders Can Catch Strategic Drift Before It Compounds
  • AI Pushes Underwriting Beyond Risk Selection to Prevention

Research & Whitepapers

  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Culture Tips: Transforming a 150-Year-Old Mutual
  • Exclude It, Harness It, Get Greedy: Insurers' AI Playbook
  • Ranking Industry AI Talent, Maturity Leaders

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map