Wells Fargo’s fraudulent accounts scandal grew deeper Thursday, as it disclosed that approximately 1.4 million more potentially unauthorized accounts than the bank initially estimated when the embarrassing saga erupted in late 2016.
New findings confirm Wells Fargo CEO Tim Sloan’s August 22 projection that the investigation would likely reveal wider customer damage from the scandal. While the new information marks the conclusion of the bank’s review on the issue, investigation of the fraud scandal by the Federal Reserve and the Department of Justice will resume.
This news sent Wells Fargo (WFC) shares plummeting -0.34% to $51.17 not long after U.S. financial markets opened.
The San Francisco-based bank originally reviewed 93.5 million current and former customer accounts opened from May 2011 to mid-2015 and identified around 2.1 million potentially unauthorized accounts.
However, Wells Fargo said that the recently completed independent investigation, which examined upwards of 165 million retail banking accounts opened from January 2009 through September 2016, located nearly 3.5 million potentially unauthorized accounts.
In total, consumer and small business owners of approximately 190,000 accounts incurred Wells Fargo unauthorized fees and charges, an increase from the roughly 130,000 accounts previously found. The bank has stated it would provide a total of $2.8 million in new refunds and credits beyond the $3.3 million that was previously refunded.