Wells Fargo's 20-month nightmare

Wells Fargo may face an angry crowd at its shareholder meeting Tuesday in Iowa.Investors are pushing proposals...

Posted: Apr 24, 2018 1:37 PM
Updated: Apr 24, 2018 1:37 PM

Wells Fargo may face an angry crowd at its shareholder meeting Tuesday in Iowa.

Investors are pushing proposals to rein in Wells Fargo, and activists are organizing protests slamming the bank for countless consumer abuses.

They have a lot to complain about. Over the past year and a half, the bank has admitted to creating fake accounts, hitting customers with unfair mortgage fees and charging people for car insurance they didn't need.

The scandals have prompted changes in leadership and hefty fines.

Here's how it happened.

2016

September 8: Fake-accounts scandal breaks wide open. Federal regulators reveal Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without their customers knowing it. The bank is hit with a $185 million fine. Wells Fargo says 5,300 employees were fired for related reasons.

September 14: A government official tells CNN the Department of Justice has issued subpoenas in a probe related to the fake account scandal.

September 27: Wells Fargo CEO John Stumpf forfeits pay. Stumpf says he will give up much of his 2016 salary, including a bonus and $41 million in stock awards. The first major executive leaves the company over the scandal. Carrie Tolstedt, who headed the division that created the fake accounts, steps down and forfeits some pay.

September 28: Wells Fargo is accused of illegally repossessing service members' cars. The company agrees to pay $24 million to settle charges. The DOJ claims the bank took 413 cars without a court order, which violates federal law. The company apologizes and commits to refunds.

September 29: Wells Fargo promises to abandon unrealistic sales goals. Wells Fargo employees blamed their bosses for effectively encouraging fake accounts. Before lawmakers on Capitol Hill, CEO John Stumpf is accused of running "a criminal enterprise."

October 5: California's attorney general opens an investigation into possible identity fraud related to the fake accounts scandal.

October 12: CEO John Stumpf steps down. The company announces he will retire effective immediately.

November 3: SEC probe revealed. A new public filing from the bank discloses that the Securities and Exchange Commission is investigating the bank for issues related to the creation of as many as 2 million fake accounts.

December 13: Wells Fargo is punished by federal regulators for actions unrelated to the fake accounts. The bank is dinged for failing to comply with certain provisions of Dodd-Frank, the post-2008 law meant to better regulate big banks and protect consumers.

2017

January 23: Wells Fargo acknowledges potential worker retaliation. The bank says there are signs it retaliated against workers who tried to blow the whistle on the fake accounts.

February 20: Four senior bank employees are fired. The employees either worked or used to work in Wells Fargo's community banking division, which is at the center of the fake account scandal.

March 27: Federal agency accuses Wells Fargo of "egregious," "discriminatory and illegal" practices. In an unusual move, a top federal banking regulator severely downgrades Wells Fargo's community lending rating. The decision stems from factors beyond the fake account scandal.

March 27: Wells Fargo settles class action suit. The preliminary deal promises $110 million for wronged consumers.

April 10: Former executives are asked for money back. The bank claws back $75 million from two former executives for their roles in the fake accounts scandal, including another $28 million from former CEO John Stumpf. A new report from independent directors on the Wells Fargo board reveals the bank prepared an internal report in 2004 about practices that may encourage employees to create fake accounts.

April 21: The bank's cost of a settlement goes up. The settlement in the class action suit is increased to $142 million.

June 14: New allegations about mortgages are leveled. In a new lawsuit, Wells Fargo is accused of modifying mortgages without authorization from the customers. That means some customers could have ended up paying the bank more than they owed. It's unclear how many customers were affected. Wells Fargo says it "strongly denies" the claims.

July 27: New allegations about auto insurance are revealed. The bank admits it charged at least 570,000 customers for auto insurance they did not need. Wells Fargo says an internal review found about 20,000 customers may have defaulted on their car loans for related reasons.

August 4: Wells Fargo is sued for allegedly ripping off small businesses. A lawsuit accuses Wells Fargo of overcharging small businesses for credit card transactions by using a "deceptive" 63-page contract to confuse them.

August 31: More fake accounts are discovered. Wells Fargo says it has found 1.4 million additional phony accounts. This brings the total number of fake accounts to 3.5 million.

October 3: Wells Fargo says it wrongly fined mortgage clients. Wells Fargo admits that 110,000 mortgage holders were fined for missing a deadline - even though the delays were the company's fault. The company pledges to refund the customers.

October 16: Regulators say Wells Fargo sold dangerous investments it didn't understand. Regulators order the bank to pay back $3.4 million to brokerage customers because advisers recommended products that were "highly likely to lose value over time." Wells Fargo does not admit to nor deny the charges.

November 13: Wells Fargo admits it illegally repossessed more service members' cars. The company says it found that it had taken vehicles from another 450 service members. Wells Fargo agrees to pay an additional $5.4 million, according to the Justice Department. The company promises refunds.

2018

February 2: The Federal Reserve punishes Wells Fargo. In an unprecedented move, the Fed says the bank won't be allowed to grow its assets until the bank cleans up its act. The bank also agrees to overhaul its board of directors.

February 23: The city of Sacramento, California, accuses Wells Fargo of a "long-standing pattern and practice" of illegal lending in minority and low-income communities that reduced home values, limited property tax revenue and drove up foreclosures. The bank says the allegations "do not reflect how we operate in the communities we serve" and says it will "vigorously defend" its lending record.

April 20: The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency announce that they are fining fine Wells Fargo $1 billion for the car insurance and mortgage abuses.

--CNN's Donna Borak and Jill Disis contributed to this report.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 26980

Reported Deaths: 1159
CountyConfirmedDeaths
Hennepin9099657
Ramsey3351149
Stearns205614
Nobles15775
Anoka152779
Dakota144664
Washington70035
Olmsted68911
Rice5243
Kandiyohi5141
Scott4712
Clay44930
Mower4462
Wright3492
Todd3441
Sherburne2492
Carver2402
Benton1853
Steele1700
Freeborn1590
Blue Earth1490
Martin1355
St. Louis11914
Lyon1012
Unassigned9611
Pine930
Nicollet8811
Cottonwood820
Winona8115
Crow Wing815
Watonwan790
Carlton750
Goodhue736
Otter Tail731
Chisago691
Polk632
Itasca5610
Dodge540
Chippewa521
Morrison480
Le Sueur471
Douglas460
Meeker460
Becker440
Jackson420
Murray410
McLeod410
Isanti360
Pennington300
Waseca290
Mille Lacs241
Rock230
Faribault220
Wabasha200
Swift191
Beltrami180
Sibley170
Brown172
Fillmore171
Norman150
Pipestone130
Kanabec121
Aitkin120
Marshall120
Cass112
Big Stone110
Wilkin113
Wadena100
Pope100
Koochiching90
Redwood70
Yellow Medicine70
Renville70
Mahnomen61
Lincoln60
Red Lake40
Traverse40
Grant40
Clearwater30
Houston30
Hubbard30
Lac qui Parle30
Roseau30
Stevens10
Lake10
Kittson10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 21114

Reported Deaths: 593
CountyConfirmedDeaths
Polk4614140
Woodbury286137
Black Hawk178849
Buena Vista10672
Linn97879
Dallas95226
Marshall91418
Wapello63615
Johnson6198
Muscatine56741
Crawford5512
Tama41129
Scott38510
Dubuque35921
Louisa35011
Pottawattamie31910
Sioux3060
Jasper26917
Wright2210
Washington1968
Warren1671
Plymouth1522
Story1311
Allamakee1204
Mahaska9913
Poweshiek928
Hamilton760
Webster741
Henry732
Boone720
Bremer716
Clarke690
Des Moines681
Taylor660
Clinton651
Guthrie553
Cedar501
Benton431
Cherokee410
Monroe415
Jones370
Shelby370
Osceola360
Jefferson360
Marion350
Dickinson350
Buchanan341
Iowa340
Clayton343
Cerro Gordo331
Madison292
Lee290
Sac280
Davis280
Emmet270
Fayette270
Clay270
Monona260
Harrison260
Hardin240
Lyon240
Winneshiek240
Lucas222
Mills200
Grundy200
Franklin200
Humboldt201
Pocahontas200
Delaware191
Floyd191
Hancock180
Appanoose173
Butler161
Kossuth160
Carroll151
Ida150
Greene150
Keokuk140
Jackson140
Page140
Audubon131
Cass130
Chickasaw130
Howard120
Winnebago110
Calhoun100
Union100
Van Buren90
Adair90
Montgomery92
Adams70
Palo Alto70
Ringgold40
Fremont40
Mitchell40
Worth30
Unassigned20
Wayne10
Decatur10
Rochester
Few Clouds
77° wxIcon
Hi: 79° Lo: 61°
Feels Like: 78°
Mason City
Scattered Clouds
82° wxIcon
Hi: 82° Lo: 64°
Feels Like: 82°
Albert Lea
Clear
81° wxIcon
Hi: 81° Lo: 65°
Feels Like: 81°
Austin
Broken Clouds
81° wxIcon
Hi: 81° Lo: 65°
Feels Like: 81°
Charles City
Clear
81° wxIcon
Hi: 82° Lo: 62°
Feels Like: 81°
Weekend looks nice
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Chris' PM Weather Forecast 6/5

Image

Gyms, fitness centers set to reopen

Image

Easing restrictions for MN restaurants and gyms

Image

Charles City vigil for George Floyd

Image

Hawkeye Harvest Foodbank partnership

Image

Next phase of Minnesota reopening

Image

Rental Assistance program for Rochester

Image

IA Care Homes Could Reopen to Visitors

Image

'Color Me Mine' Location Closes for Good

Image

Getting Your Fair Food Fix During the Pandemic

Community Events