Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • CM Special Event: Is Insurance Innovation Overrated?
  • What's Next for Lemonade?
  • Social Inflation Playbook for Insurers
  • 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
WEBINAR: Why People Of Color Don’t Stay In Insurance
COVID-19 Reveals Urgent Need for Homeworker Protections
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
UK Supreme Court Rules Businesses Should Be Insured for COVID-19 Claims
Initial Reactions to UK Supreme Court’s Ruling on Business Interruption Claims

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Data Analytics Startup Confianza Makes Its Debut
Lemonade Plans to Sell 3 Million Shares in Secondary Offering
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
UK Insurance Ruling Is ‘Massive Boost’ for Businesses: Hiscox Action Group
InsurTech Loop Announces Seed Funding, Targets Fair Auto Insurance
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Ranking U.S. Insurers: How They Score on ESG Performance
EU Regulator Seeks More Hands-On Approach to Insurer Capital
CM Exclusive: Google’s Insurance Strategy Could Be a Game Changer
In-Person Again? Some P/C Groups Are Planning Gatherings, With an Asterisk
Racism in Insurance: How Things Can Change
Life Insurance Next for Lemonade: Auto on the Horizon

See all Top 50

Why the Insurance Industry Can’t Risk Downplaying Inclusion
The Dos and Don’ts of Digital Transformation: A Guide for Insurance Companies
BI Innovation Coming Soon: Low-Limit Policies From InsurTech Thimble
Actuary to Actuary: How to Help Combat Racism in the Workplace

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.

Print Edition

6 bi-monthly issues of Carrier Management magazine every year.

Wells Fargo Settles Phony Bank Account Scandal for $142M

Print Email
June 15, 2018 by Aparajita Saxena
  • Article
  • 0 Comments

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 2021 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.

Why the Insurance Industry Can’t Risk Downplaying Inclusion
CM Exclusive: Google’s Insurance Strategy Could Be a Game Changer
The Dos and Don’ts of Digital Transformation: A Guide for Insurance Companies
Chubb, Liberty Mutual, Travelers Put Political Donations On Hold

Related Articles

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

Our Contributors

Bill DonnellResponding to the Impact of COVID-19 on Workers Compensation
Gregory Bailey4 Ways Your Company Should Use Technology to Support Customers in an Era of Social Distancing
Tal DaskalThe Dos and Don’ts of Digital Transformation: A Guide for Insurance Companies
Gloria AsareActuary to Actuary: How to Help Combat Racism in the Workplace
Hemant Shah2021: A Year of Digital Convergence for Large Commercial Risks
Bruce OrcuttHow Insurers Can Move Past ‘Unprecedented’: 3 Lessons Learned in 2020
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • CM Special Event: Is Insurance Innovation Overrated?
  • What's Next for Lemonade?
  • Social Inflation Playbook for Insurers
  • COVID Command Centers; CROs Shine

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Notion, a Comcast Company
  • CoreLogic

Connect with us

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

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier ManagementCarrier Management
  • Insurance JournalInsurance Journal
  • Claims JournalClaims Journal
  • IJ AcademyInsurance Journal Academy
  • Insurance Journal TVInsurance Journal TV
  • MyNewMarkets.comMyNewMarkets.com
© 2021 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map

We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.