Wells Fargo Legal Troubles Continue Piling Up: SEC Now Investigating Phantom Accounts

Chris Gaetano
Published Date:
Nov 4, 2016
Wells Fargo

Wells Fargo continues to have a bad day as the LA Times reports that the Securities and Exchange Commission (SEC) has joined the veritable who's who of financial regulators in launching its own investigation into its use of sham accounts to drive up sales figures. The commission joins the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the California Attorney General, the Los Angeles City Attorney, the U.S. Justice Department, the House of Representatives, the Senate, the FBI, the U.S. Attorneys Office for California and New York, and the U.S. Department of Labor in taking action regarding the revelation that the bank had opened millions of phony accounts in customers' names without their knowledge or consent. This is to say nothing of the numerous non-governmental parties suing the bank as well. Consequently, according to the LA Times, the bank has increased its maximum estimate for potential litigation losses from $1 billion in June to, now, $1.7 billion. CNBC said that the SEC is looking into the bank's disclosures related to its sales practices. 

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