Page 129 - Bank Case Studies

In July 2017 it was revealed that more than

800,000 customers who had taken out car loans
with Wells Fargo were charged for auto insurance

they did not need.

Several weeks later, the bank disclosed that the

number of bogus accounts that had been created
was actually 3.5 million, a nearly 70 percent

increase over the bank's initial estimate.

Finally, in In February 2018 the Federal Reserve took the
unprecedented step of barring Wells Fargo from growing

any larger until it cleaned up its business practices. The

agency also announced that the bank had been pressured

to replace four members of its board of directors. (13)