Wells Fargo has recently shown the pink slip to four executives working for its foreign exchange division amid a probe into their work, according to a Wall Street Journal report published Friday.
A spokesperson for the banking giant confirmed the news but refused to offer more detail on why the four bankers had to leave. A fifth banker that was working for the division was transferred to a different department.
The probe is the latest problem the bank must face after a monster scandal regarding phony bank accounts, which broke out last fall. That scandal resulted in the demise of its CEO, a congressional hearing, and regulatory fines.
The New York Times found that a federal agency slammed the bank several days ago over a product related to auto insurance that borders illegality. The regulator accused Wells Fargo of being engaged in deceptive practices, failing to have a proper risk management plan, and refusal to reimburse affected customers.
Wells Fargo Engulfed in Scandals
The bank pledged $80 million to compensations for a controversial auto insurance program it ended last year. Around 570,000 customers were affected by unsolicited auto insurance. However, the Office of the Comptroller of the Currency reported that the bank may not have the promised money.
Last week, Wells unveiled that it will commit $1 billion to costs linked to the ongoing mortgage probes. The move could boost its third-quarter earnings by 18 percent.
Earlier this month, a Senate panel grilled the bank’s chief executive Tim Sloan over the institution’s repeated scandals. The executive apologized for the misconduct but said Wells was stronger today than it was a year ago.
It wasn’t immediately clear what prompted the firings in the bank’s foreign-exchange unit. A spokesperson for the bank said the division would continue to serve clients under a new executive, Ben Bonner.
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