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Wells Fargo agrees to $3B settlement in fake accounts case
Former Wells Fargo CEO banned for life from banking industry; Tinder makes dating safer
Morning Business Outlook: Former Wells Fargo CEO John Stumpf has been banned for life from the banking industry and must pay $17.5 million in fines; Tinder adds new features to protect people from dangerous dates and fake profiles.
Wells Fargo has agreed to a $3 billion settlement to resolve its fake account scandal, the Department of Justice announced Friday.
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As part of the settlement, the bank admitted that it wrongly collected millions of dollars in fees and interest, harmed the credit ratings of some customers and illegally used customers’ private information, officials said.
WELLS FARGO & COMPANY
Unrealistic sales goals led to millions of accounts being opened without customers’ knowledge or under false pretenses, Wells Fargo has admitted.
The three-year deferred prosecution agreement will clear Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., of their potential criminal and civil liability stemming from the practices, as long as the companies comply with certain conditions and continue to cooperate with government investigators.
The Securities and Exchange Commission will distribute a $500 million civil penalty to investors as part of the deal.