23 February 2020
On Friday the Wells Fargo Bank was fined $3 billion by the federal authorities for the creation of millions of fake accounts over the years.
The $3 billion fine was a settlement agreement reached between Wells Fargo and the Justice Department and Securities and Exchange Commission.
The agreement was reached following 4 years of discussion since the story was uncovered.
Wells Fargo admitted to authorities that from 2002 until 2016 they had negatively affected their customers’ credit ratings, wrongfully collected millions of dollars in fees and interest, falsified bank records and unlawfully misused customers’ personal information.
Authorities stated that the case is being resolved by what’s known as a deferred prosecution agreement.
What this entails for Wells Fargo is that so long as they abide by certain conditions, including continuing to cooperate with “further” government investigations they will not be prosecuted for the next 3 years.
It should be noted that the settlement focused primarily on fake-accounts scandal.
Unfortunately the mistreatment of numerous customers wasn’t a priority for the authorities.