Wells Fargo & Co (NYSE:WFC) has axed some of its investment bankers after they reportedly overcharged clients in an effort to boost their bonuses.
Some of the banking company’s employees revealed during interviews that only 35 out of roughly 300 fee agreements involved in foreign exchange transactions were accurately charged. The investigations on the matter revealed that the excess fees by the investment bankers only affected the business customers. This is the latest scandal to rock the company and it comes just as Wells Fargo was recovering froma previous scandal involving its retail banking unit where employees had been opening multiple accounts to reach their bonus targets.
The bank claims that roughly 3.5 million unauthorized accounts were opened before the employees were busted. Wells Fargo is currently the only bank that awards its currency exchange bankers based on the amount of revenue that they generate in the U.S. It is thus easy to see why the bankers decided to take advantage of the loopholes for their own personal gains. However, the company is still committed to getting over the scandals and giving the best service to its customers.
“Wells Fargo remains committed to our foreign exchange business. If we find a problem, we fix it,” notedWells Fargo in a statement released on Monday.
Wells Fargo also found itself in an awkward situation in 2016 after it was accused of scandalous practices. Some of its high ranked officials ended up being fired and the company also had to pay a hefty fine of $185 million to regulators. It has remained the subject of federal and state investigation ever since the scandal was uncovered as authorities seek to get to the bottom of it.
It could be argued that the company’s policies were largely to blame for the employees’ actions as far as the scandals are concerned. This is because their bonuses and jobs were on the line if they failed to reach their target and as such, they had to resort to unorthodox means.
Wells Fargo stock closed the latest trading session on Tuesday at $55.57 after a 2.98 percent gain from the previous close.