Wells Fargo executives have stated that the accounting scandal will have a significant effect on the growth of its retail banking business.
The Wall Street Journal has reported citing the recording of an internal call, Wells Fargo & Co’s CFO has said its third quarter earning will not be “much” affected by the efforts of states to penalize it over the scandal related to the unauthorized-accounts.
John Shrewsberry has been recorded as saying, the bank will only take “some legal set-asides”. However publicizing this “might incentivize people to do more, to make it tougher on Wells Fargo …,” reported the WSJ.
The call refers to an hour long call involving 500 senior Wells Fargo executives, whose purpose was to lay out the bank’s strategy to move past the scandal.
Representatives from Wells Fargo were not immediately available for comment.
Ever since the scandal broke out the bank has been under pressure to show its willingness to make amends and hold its management responsible after government investigations revealed the extent of its employees opening as many as 2 million accounts without customers’ knowledge or permission in order to meet sales targets.
Well Fargo’s executives have also been recorded as saying, growth in its retail banking business is likely to take a significant hit due to the scandal.