The U.S. Labor Department is reportedly wanting into Wells Fargo’s 401(okay) practices, and whether or not the financial institution is pushing its clients into costlier plans, The Wall Street Journal reported Thursday.
Wells Fargo, in response to CNBC’s request for remark, pointed to its newest quarterly regulatory submitting.
“We are committed to thorough reviews of Wealth and Investment Management, per our 10-K disclosures, to their full conclusion,” a Wells Fargo spokesperson stated. “Our top priority is to rebuild trust with all of our stakeholders. The disclosures in the 10-K filing reflect our continued commitment to transparency, even when all of the information or the final outcome of a matter may not be known just yet. We are making significant progress in our work to identify and fix any issues, make things right, and build a better, stronger company.”
The submitting, which got here out in March, disclosed a overview of sure actions within the wealth and funding administration enterprise in response to inquiries from federal authorities businesses. The overview included whether or not the division had made inappropriate referrals and proposals for 401(okay) members.
This would mark the newest regulatory headache for the San Francisco-based financial institution. Last week, Wells Fargo agreed to pay a $1 billion wonderful over misconduct in its mortgage lending and auto companies.
Shares of the financial institution fell greater than 1.1 p.c Thursday, and are down greater than 13 p.c this yr.
The nation’s third-largest financial institution has struggled to recuperate from a 2016 pretend accounts scandal. Branch staff had opened hundreds of thousands of faux accounts in clients’ names with out their data to satisfy gross sales targets.
Wells Fargo switched up its govt ranks following the scandal however different investigations into its personal gross sales practices unearthed points in its auto lending, mortgage and wealth administration divisions.
This week, shareholders and protesters rallied exterior of the corporate’s annual assembly in Des Moines, Iowa. Last yr’s three-hour assembly in Florida was interrupted by protesters greater than as soon as.