Wells Fargo Currency Traders Found to Be Overcharging Customers to Fatten Bonuses

By:
Chris Gaetano
Published Date:
Nov 28, 2017

Wells Fargo

Currency traders at Wells Fargo routinely overcharged foreign exchange customers in order to meet bonus incentives based on how much revenue they were able to pull in, according to the Wall Street Journal. In fact, after an internal review, it was found out of roughly 300 fee agreements, only 35 companies were charged the actual price that had been offered for currency trades. Bankers would rely on the fact that few customers would bother to double check the math, but when challenged they would blame the price difference on things like computer algorithms or “time fluctuation.” Further complaints would usually result in a refund, as is what happened with Restaurant Brands International. Regardless, the practice resulted in fees of 1 to 4 percent to exchange one currency for another, a service that typically costs 0.15 percent to 0.5 percent. Wells Fargo said that it was aware of the problem, and has changed the bonus structure to discourage similar shenanigans. 

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