Wells Fargo, the largest U.S. bank by market capitalization will pay $185 million in penalties and $5 million to customers that regulators say were pushed into fee-generating accounts they never requested. Mana Rabiee reports.
Wells Fargo is being hit with a $190 million fine for creating fake customer accounts that regulators say were illegal. Prosecutors allege the bank pushed customers into costly financial products they didn't need -- or ask for. They say employees created some 2 million 'ghost' deposit and credit accounts under pressure to generate more sales. Ken Wallman of Venice, California says he confronted HIS Wells Fargo branch after discovering THIRTEEN unauthorized accounts in his name. KEN WALLMAN, WELLS FARGO CUSTOMER, SAYING: "I went in with my big pile and I said 'What is this?' It's important that these big companies play by the rules. It just has to happen. Wells Fargo says it "regrets" and "takes responsibly" for what happened. It's also fired, over the past years, some 5,300 employees involved in the fraudulent practice. About half of the $190 fine will go to the Consumer Financial Protection Bureau while $5 million goes back to customers.