Thursday, November 3, 2016
The SEC is now looking into Wells Fargo
The Securities and Exchange Commission (SEC) is probing to see if Wells Fargo violated rules around investor disclosures and other matters relating to its recent sales tactics scandal, the Wall Street Journal reported on Wednesday.
The SEC sent requests to Wells Fargo for documents in recent weeks, following senators' calls, the newspaper said citing sources.
Wells Fargo veteran chairman and chief executive officer, John Stumpf, abruptly departed last month bowing to pressure over the bank's sales tactics that have damaged its reputation and put Wall Street under renewed scrutiny.
The misconduct, carried out by low-level branch staff to meet internal sales targets, shattered the bank's folksy image and a raft of federal and state investigations followed.
A spokesman for the SEC declined to comment. Wells Fargo was not immediately available to comment.
(Reporting by Subrat Patnaik in Bengaluru)