Wells Fargo deal in doubt as scandal deepens

San Francisco

WELLS Fargo & Co's disclosure last week that its sales people opened significantly more potentially unauthorised accounts than previously stated may jeopardise the US$142 million class action settlement with customers that won preliminary approval from a judge in July.

The scandal came to light a year ago, after regulators slapped Wells Fargo with fines of US$185 million over its sales practices, prompting congressional hearings and resulting in the bank naming new leaders, clawing back executives' pay and beginning an overhaul of its retail division.