Published: Wed, February 22, 2017
Economy | By Melissa Porter

Wells Fargo announces four fired managers in fraudulent customer account scandal

The bank is facing pressure from regulators and Congress to disclose more information about the scandal, with one ripple being the October 12 retirement of John Stumpf, its chairman and chief executive about two weeks after he was grilled by the U.S. Senate Banking committee on September 28.

Wells Fargo announced Tuesday that it had fired four executives as its board of directors nears completion of its investigations into sham accounts set up by low-level employees to allegedly meet sales quotas.

Elaine Chao, who was recently sworn in to lead the U.S. Transportation Department, has left the bank's board and the new appointments expand the size of the board by one director, according to a source familiar with the matter.

- Matthew Raphaelson, head of community bank strategy and initiatives.

She's a former high-school cheerleader from Southern California who made the proverbial climb up the corporate ladder in a career spanning more than 35 years with the company.

Each of the fired executives will also forfeit all of their unvested equity awards and vested outstanding options, the bank said.

- Claudia Russ Anderson, former community bank chief risk officer. Freeman declined to comment when reached on her cell phone.

An announcement suggested that these firings wouldn't be the last at the 164-year old bank. The board said that it expects the investigation to be completed before Wells Fargo's annual meeting of stockholders, which is scheduled for April 2017.

The statement did not detail any connections between those executives and the scandal, in which Wells Fargo employees were found to have created as many as 2 million accounts - such as new credit card accounts - in customers' names, using tactics that were first uncovered by the Los Angeles Times in 2013.

The bank also said that its internal investigation is continuing.

The Board's independent investigation is ongoing.

The employees were fired by unanimous vote of the board's independent members.

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