Wells Fargo reaches US$110m fake accounts settlement

San Francisco

WELLS Fargo & Co reached a US$110 million settlement with customers in the US over claims that its employees set up fraudulent accounts to boost their own pay, a deal that moves the bank another step towards closing the books on last year's scandal.

Revelations that Wells Fargo employees may have opened more than two million deposit and credit card accounts without customers' permission has prompted sweeping changes at the San Francisco-based lender. The bank eliminated a system of sales targets that regulators said encouraged workers to create fake accounts. It also fired or demoted five people who had served as senior managers in the consumer business.