Wells Fargo Chief Operating Officer Tim Sloan expects to make up lost business with state and local government agencies within a few years after some suspended dealings with the firm when it was caught opening legions of unauthorized accounts for customers.
“Our goal is to win back all of that business and more,” Sloan said in a telephone interview on Monday. “Maybe it’s a year, maybe it’s two years, maybe it’s longer than that. But we’re going to win it back. There is no question in my mind.”
Bloomberg News reports that California, Illinois and cities including Chicago and Seattle halted some dealings with Wells Fargo, such as using the bank to sell municipal bonds, after it agreed September 8 to pay $185m to resolve claims that employees sought to meet sales targets by opening accounts without customers’ permission. Federal prosecutors in New York and San Francisco have initiated their own inquiries. The bank faces a raft of lawsuits by fired or demoted workers, customers and investors.
Sloan said he was disappointed by some municipalities’ decisions to suspend business or put the bank “on probation,” but that it was also understandable. The firm’s business with government entities “is the best in the industry,” had been growing, “and we’re going to work hard to win that business back,” he said.
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