WASHINGTON – The Independent Community Bankers of America slammed both federal regulators and Wells Fargo after news came out the bank created two-thirds more fake accounts than previously reported.
The trade association, which represents more than 5,800 community banks throughout the country, did not hold back in a statement criticizing the new development.
“Week after week, month after month, additional scandals are uncovered at Wells Fargo involving hundreds of thousands of customers,” said Camden R. Fine, president and CEO of ICBA. “The most shocking aspect of the multiple Wells scandals is not that some of these practices have gone on for years – it is that federal regulators have taken no meaningful action against the board and senior managers who were supposedly responsible for the ethical, moral and legal conduct of the bank.”
The San Francisco-based bank fell under scrutiny after it was discovered employees were creating fake bank accounts in order to boost performance metrics. The scandal intensified more recently when it came out that the total number of fake customer accounts was actual 3.5 million compared to 2.1 million, as was first reported last year.
Fine insisted the regulatory response would have been much different had it been a smaller financial institution involved.
“Federal regulators haven’t even given them a good slap on the wrist,” Fine said. “Had this been a community bank board and senior managers, not only would they have all been removed from the bank months ago, but they would also be facing prosecution. Yet, nothing has happened to Wells, it’s senior management or its board.”
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
