Remember the outrage one year ago when it was revealed that in its push to pad its top, and bottom line, Warren Buffett’s favorite bank had engaged in outright criminal account churning and “cross selling”, opening some 2.1 million unauthorized client accounts without permission (subsequently this extended to unsolicited car insurance policies extended on Wells auto loans). Well it turns out there was not nearly outrage, because as the bank revealed this morning, the “real” number was higher. 67% higher.
According to the outside review whose findings were released today, Wells Fargo said employees created two-thirds more bogus accounts than initially thought. According to the review, an additional 1.4 million “potentially unauthorized” deposit and credit-card accounts opened when the bank was encouraging employees to sell multiple products to retail customers, bringing the total to about 3.5 million, according to a statement Thursday from the San Francisco-based firm. The revised estimate covers January 2009 to September 2016, almost twice as long as the period examined in the initial review.
Wells new CEO was, predictably, all apologies:
This post was published at Zero Hedge on Aug 31, 2017.