Wells Fargo overcharged customers for currency exchange rates: report


The scandal hits Wells Fargo once again.

The bank overcharged its corporate clients in foreign exchanges and taxed heavy transaction fees through entrenched practices that rewarded employees for cash, according to a Wall Street Journal report.

If companies questioned why currency exchange rates were higher than those initially offered by the bank, employees would simply attribute it to "time fluctuation", saying that the market rate changed when the bank was executed. transaction, a previous one The manager said

Companies were also charged unusually high fees for currency conversions, which employees attributed to the bank's "automated" computer system.

Wells Fargo is still trying to repair its image after employees pressed for sales goals. false numbers and email addresses to open 3.5 million unauthorized accounts between 2009 and 2016.

The bank, which previously remained an industry gold standard, was forced to pay regulators $ 185 million in the wake of the mbadive fraud scandal. Wells Fargo also saved more than $ 142 million in a clbad action lawsuit.

While Wells Fargo retail employees cited tight quotas and a pressure cooker environment in the fraud scandal, those who participated in the bank's foreign exchange operation pointed to the company's plan bonus.

The reward system, considered unusual for the industry, allowed bankers to take home 10% of revenues exceeding the company's stated goal, according to The Wall Street Journal.

So, if the goal was $ 5 million, a banker brought $ 6 million, he or she would receive an additional bonus of $ 100,000.

And when corporations complained about transaction fees, which ranged between 1% and 4% compared to the standard of 0.15% to 0.5%, employees had their excuses at hand, according to the WSJ.

A former employee said that workers would tell corporate clients that the computer system automatically badessed rates. "If someone complained, it was an easy dance," he said.

And of the 300 honoraria agreements, some of which were made informally in emails, only 35 of the corporate clients charged the rates originally offered, according to an internal review cited by employees who spoke with the WSJ.

In one case, Wells Fargo reached a price agreement with data management company Veritas Technologies, before telling its client that the rate was 0.05% more than the agreed rate, according to the employees.

That move only generated an additional $ 50,000 for Wells Fargo, although the bank later returned the money to Veritas, according to the WSJ.


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