Sept 13 (Reuters) - Wells Fargo & Co, the largest U.S. bank by market capitalization, said on Tuesday it would eliminate all product sales goals in retail banking, starting next year.
The move comes days after the Consumer Financial Protection Bureau (CFPB) and two other regulators fined the bank $185 million over abusive sales practices.
The bank paid another $5 million to customers for creating more than two million fake accounts for products like credit and debit cards to meet aggressive sales targets.
Customers should know that Wells Fargo retail bankers are always focused on their best interests, Chief Executive John Stumpf said in a statement on Tuesday.
The enforcement action caught the attention of U.S. presidential candidate Hillary Clinton, who on Friday applauded the CFPB, censuring Wells Fargo for what she called "outrageous behavior."
On Monday, five lawmakers wrote a letter to U.S. Senate Banking Committee Chairman Richard Shelby calling for an investigation.
Credit rating agency Moody's Investors Service also commented, saying the "embarrassing episode" would have a negative impact on Wells Fargo's outstanding debt.
Wells Fargo said it had fired 5,300 employees involved in the sales practices described by the settlement. (Reporting by Richa Naidu in Bengaluru; Editing by Sriraj Kalluvila)
Relive some of the biggest news scandals in recent memory:
Biggest news scandals of 2015
Biggest news scandals of 2015
Millions of adulterers (and perhaps some who signed up just for the thrill) were explored this year when hackers made good on a promise to release the contact information of everyone on the notorious Ashley Madison cheating website. The names, credit card information and sexual preferences of millions were revealed in the big hack, including reality star Josh Duggar.
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Former Secretary of State Hillary Clinton spent a good amount of this year defending herself for using private email servers to conduct official State Department business. The story dominated headlines for months, with many opponents questioning potential security lapses along with her judgment for using the servers in the first place. Clinton herself has admitted it wasn't her smartest decision.
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The world now knows that New England Patriots quarterback Tom Brady prefers slightly deflated balls, thanks to Deflategate. The controversy began when the team was accused of improperly tampering with footballs used in the AFC Championship Game against the Indianapolis Colts. Months after winning Super Bowl XLIX, Brady was slapped with a four-game suspension over his role in the scandal, which was reversed in time for him to play.
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The U.S. Department of Justice indicted more than two dozen FIFA officials and prompted nine arrests in Switzerland on counts including racketeering and money laundering related to the 2018 and 2022 World Cup bids.
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Veteran newscaster Brian Williams drew the ire of actual veterans when it came to light that he exaggerated claims about his experiences while covering the Iraq war in 2003. He was suspended for six months and now appears on MSNBC, handling special reports.
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Rachel Dolezal went from being a relatively unknown civil rights activist to a national figure after it emerged that she was born to white parents. Dolezal insisted she identifies as black, but she still lost her job as an African studies teacher at a local college.
(Photo via AP)
Fifteen years after he became a household name for his drastic sub-riddled weight loss plan, Jared Fogle may have had his worst year yet. The former Subway spokesman pleaded guilty to having sex with minors and possessing child pornography this year and was sentenced to more than 15 years in prison.