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Wells Fargo Says SEC Is Examining Hiring Practices

Sarah Wolak
Nov 01, 2022
Wells Fargo

The bank confirmed on Monday that they are being investigated by the U.S. Securities and Exchange Commission.

KEY TAKEAWAYS
  • In the same SEC filing, Wells Fargo said it is negotiating with the CFPB to settle several investigations to do with mortgage lending.

Wells Fargo is once again finding itself defending its practices. The company said Monday that the U.S. Securities and Exchange Commission (SEC) has begun investigating its hiring practices, after the Department of Justice had opened a related case.

In its quarterly report filed with the SEC, the fourth-largest U.S. bank said both agencies "have undertaken formal or informal inquiries or investigations regarding the company's hiring practices related to diversity."

The company drew scrutiny in June when it suspended a policy requiring that it interview a "diverse" group of people for some jobs, with half of the candidates being female or nonwhite. The company hit pause on the policy after The New York Times reported that the policy had led some employees at the San Francisco-based bank to conduct "fake" interviews for jobs that had already been filled

In the same SEC filing, Wells Fargo said it is negotiating with the Consumer Financial Protection Bureau (CFPB) to settle several investigations and inquiries related to lending, including mortgages. 

Wells Fargo said in mid-October that its third-quarter earnings were severely impacted by $2 billion it paid as a result of lawsuits, regulatory investigations and other legal matters. 
 

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