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US prosecutors probe former Wells Fargo executive over scandal: Report
Former Wells Fargo CEO banned for life from banking industry; Tinder makes dating safer
Morning Business Outlook: Former Wells Fargo CEO John Stumpf has been banned for life from the banking industry and must pay $17.5 million in fines; Tinder adds new features to protect people from dangerous dates and fake profiles.
U.S. prosecutors are investigating the former head of Wells Fargo & Co’s community banking division for her role in the lender’s product mis-selling scandal, two sources said.
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The Department of Justice is investigating Carrie Tolstedt, who ran the bank’s retail and small business lending business from 2007 to 2016, the sources said. The criminal inquiry into Tolstedt’s actions has not been previously reported.
The development marks a rare instance of a senior bank executive facing criminal inquiry as a result of their job. Wells Fargo, which paid $3 billion in February to settle federal civil and criminal probes, has admitted that it pressured employees between 2002 and 2016 to meet unrealistic sales goals, which led them to open fake accounts for customers.