Wells Fargo & Co. will no longer offer bonuses to brokers who persuade customers to take out loans from other parts of the bank as the firm grapples with fall-out from a cross-selling scandal.
Bloomberg News reports that the bank’s brokerage unit will keep its basic pay grid in place for 2017, but will do away with bonuses for selling clients products such as mortgages, securities-backed loans or lines of credit, according to a personal familiar with the change, who asked not to be identified discussing compensation policies.
The company has faced a barrage of criticism and calls for closer scrutiny since it was fined $185 million by regulators in September for possibly opening more than 2 million retail bank accounts without customer approval. The San Francisco-based firm is still the focus of investigations by federal, state and local authorities, and on Tuesday failed for a second time this year to persuade regulators that it can unwind its business without damaging the financial system.
Hit the link below to access the complete Bloomberg article:
Have something to tell us about this article?