Wells Fargo is investigating bankers' alleged expense violations
Wells Fargo is investigating employees in its investment bank for alleged violations of its expense policy after they tried to get the company to pay for ineligible evening meals.
The lender has already fired or suspended more than a dozen staff members for allegedly doctoring receipts to allow them to expense the meals, the Wall Street Journal reported earlier Thursday, citing people familiar with the matter it didn’t identify.
“We became aware that certain Wells Fargo Securities team members were not complying with the after-hours meals reimbursement policies after they were brought to the attention of our leaders by concerned team members,” Jessica Ong, a spokeswoman for Wells Fargo, said in an email to Bloomberg. “We took action to address the issue and we continue to investigate the matter.”
One recruiter says, "If I'm an advisor at Wells Fargo right now, I have to ask myself is this the firm I want to tie my future to?"
The advisory business ended the year on a strong note, boosted by growth in net interest income, which rose 14% year-over-year.
Net income for the wealth management unit rose to $677 million from $606 million for the year-ago period.
Investment bankers allegedly doctored the time of emailed receipts to qualify the purchases for reimbursement from the bank, the Journal reported.
The latest revelation of misconduct at Wells Fargo comes as the San Francisco-based bank tries to overhaul its internal culture after two years of lawsuits, investigations and fines that have taken a toll on the firm’s reputation, business and relations with regulators. Scandals began erupting in 2016 when regulators said the bank had opened millions of accounts without customers’ permission.
Chief Executive Officer Tim Sloan has said the company is committed to making the changes necessary to shore up operational and compliance risk. Earlier this year, Wells Fargo launched an ad campaign, “Re-Established,” with the aim of assuring the public that it’s committed to fixing its problems and righting the ship.
Wells Fargo has been dealing with a Federal Reserve-imposed growth ban requiring it to clean up its act to the regulator’s satisfaction before the bank can increase assets beyond their end-of-2017 level. Since the order, Janet Yellen’s final act as the Fed’s chair, took effect, the list of the bank’s lapses has grown to include unnecessary foreclosures and a U.S. inquiry into its purchase of low-income housing tax credits.