Wells Fargo's board blames high-pressure sales culture and one of its own executives for the unauthorized accounts scandal. Roselle Chen reports.
Wells Fargo's board blames high-pressure sales culture and one of its own executives for the unauthorized accounts scandal. In a report published on Monday, the board says a former head of retail division ignored the abuses and obstructed the board's efforts to get involved. The executive denies the allegations. Last September, Wells Fargo reached a $185 million settlement with regulators for opening more than two million deposit and credit card accounts without customers' permission. Douglas McIntyre of 24/7 Wall Street: (SOUNDBITE) DOUGLAS A. MCINTYRE, EDITOR-IN-CHIEF & CEO, 24/7 WALL ST., LLC, (ENGLISH) SAYING: "I don't know that their reputation can be damaged much more than it has been by this incident. It's further evidence how severe the problem was, and also the extend which management way high up on the board apparently were clueless about this, which is, as you know, one of the most shocking things that you can have this large level of fraudulent account activity, and, for some reason, it never bubbled up in the organization." Since the scandal broke, the number of customers signing up for checking and credit card accounts at Wells Fargo has steadily declined. It also lost its status as America's most valuable bank by market value.