• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / Crime / Courts / Attorney General reaches $575 million settlement with Wells Fargo

Attorney General reaches $575 million settlement with Wells Fargo

December 28, 2018 By Matt Kelley

Attorney General Tom Miller (file photo)

Wells Fargo Bank has agreed to pay $575 million to settle claims that the bank violated consumer protection laws.

Iowa Attorney General Tom Miller says Iowa’s share of the settlement is $6.18 million. “That’s calculated mainly on the number of transactions and potential violations in Iowa, plus some additional money because Iowa was one of the five lead states in negotiating this agreement,” Miller said. Iowa’s share of the settlement will go to the state’s Consumer Education and Litigation Fund.

Just over two years ago, Wells Fargo officials acknowledged that employees had opened millions of fake accounts to meet sales goals. According to Iowa Assistant Attorney General Patrick Madigan, bad human behavior is often driven by incentives. “This case is a demonstration of that,” Madigan said. “The incentives that were put in place by Wells Fargo drove employees to engage in very substantial misconduct.”

He’s urging other companies to carefully review their policies to avoid similar problems. “How are you incentivizing your employees to act? Because it has real-world consequences, as demonstrated by today’s settlement,” Madigan said. Wells Fargo, also accused of illegal practices related to insurance and mortgages, previously reached a federalment and was slapped with a record $1 billion fine.

Wells Fargo is the Des Moines area’s largest private employer, with about 14,000 workers.

 

Share this:

  • Facebook
  • Twitter

Filed Under: Business, Crime / Courts, News

Featured Stories

DOT plow crews struggling against blizzard conditions

Iowa delegation breaks along party lines on Trump impeachment vote

Two northeast Iowa men admit to illegally harvesting ginseng

Do you have to pay tax on your stimulus check?

All six in Iowa’s congressional delegation confirm Electoral College results

TwitterFacebook
Tweets by RadioIowa

Iowa State-Kansas postponed

Iowa-Michigan State postponed

Fire damage to Riverfront Stadium electrical system will cost Waterloo thousands

Iowa State at Kansas State postponed

Iowa State’s Foster to miss remainder of the season

More Sports

eNews and Updates

Enter your email address:

Delivered by FeedBurner

Archives

Copyright © 2021 ยท Learfield News & Ag, LLC