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U.S. regulator knocks its own handling of Wells Fargo sales scandal
April 19, 2017 / 4:19 PM / 7 months ago

U.S. regulator knocks its own handling of Wells Fargo sales scandal

WASHINGTON, April 19 (Reuters) - Wells Fargo & Co and its U.S. bank regulator discussed complaints of high-pressure sales tactics as early as 2010 but officials took no action for years, according to a regulator’s review of the scandal.

Bank examiners “failed to follow-up on significant complaint management and sales practices issues,” according to an unpublished, internal review by the Office of the Comptroller of the Currency that was seen by Reuters.

The report ends a seven-month evaluation of how the OCC failed to halt a phony accounts scandal in which thousands of Wells Fargo employees created as many as 2 million customer accounts without their consent.

The OCC review recommends nine changes to internal process to better detect and address such scandals. Whistleblowers will have a more direct line to senior officials under one change, the document says. (Reporting By Patrick Rucker and Pete Schroeder in Washington; Editing by Lauren Tara LaCapra, Editing by Franklin Paul)

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