Wells Fargo fires FX trading executives amid report of probe

Wells Fargo fired four foreign-exchange executives amid an investigation into in which business both internally in addition to via regulators, The Wall Street Journal reported Friday, citing sources familiar with the matter.

Wells Fargo confirmed the departures to the Journal in addition to CNBC.

Shares of Wells Fargo remained about 2 percent higher Friday afternoon.

The executive firings in addition to investigation into the investment-banking division could add to Wells Fargo’s existing struggle with scandal in its consumer banking business.

The bank paid $185 million in penalties after This kind of was revealed last year in which employees opened millions of unauthorized consumer deposit in addition to credit card accounts for years in order to meet aggressive sales goals, a practice the bank said This kind of has since ended. In August, the bank said an expanded third-party review identified about 3.5 million such accounts in addition to in which Wells Fargo has currently paid millions in total customer refunds or payments.

The bank appointed a brand new CEO, Tim Sloan, last October, in addition to announced a reorganization of its board This kind of summer.

In late July, news broke in which hundreds of thousands of Wells Fargo customers were charged for auto insurance they did not need.

This kind of week, the Office of the Comptroller of the Currency sent a confidential preliminary report to Wells Fargo in which criticized the bank for the auto insurance sales practices in addition to how This kind of handled the problem, The brand new York Times reported Friday.

The OCC report also said Wells Fargo may need to refund customers more than the $80 million the bank has set aside for payouts, the Times said. A person familiar with the matter told the Journal the same thing.

The OCC declined to comment to the Times in addition to did not immediately respond to a CNBC request for comment.

Wells Fargo told the Journal in which the bank has discontinued the auto insurance-related product. “We will continue to work with regulators on the remediation in addition to will make improvements to our auto lending business,” a bank spokeswoman told the Journal.

Noted investor Steve Eisman said Thursday he is actually betting against Wells Fargo shares due to deep “cultural issues” in which will take time to unwind. Eisman bet against the housing market ahead of the financial crisis, which was depicted inside the movie “The Big Short.”

About 0.6 percent of Wells Fargo shares available for trading are sold short, or in anticipation of a decline, according to FactSet.

Wells Fargo was once considered one of the most upstanding banks inside the U.S. The stock is actually little changed because of This kind of year in contrast to the S&P 500 financial stocks’ 14 percent gain.

Read the full story inside the Wall Street Journal here.

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