As Wells Fargo CEO John G. Stumpf was being grilled withquestions and criticisms by the U.S. House Financial ServicesCommittee in Wash. D.C., Thursday, a top-to-bottom review of cases,complaints and violations over the bank's employment practices isunder way at the U.S. Department of Labor.
The review was triggered by a Sept. 22nd lettersigned by seven U.S. Senators who asked the DOL to launch aninvestigation into whether Wells Fargo violated the Fair Labor Standards Act with respectto its account executives, bank tellers, branch managers andcustomer service representatives.
The alleged FLSA violations surfaced during investigations bythe CFPB and California regulators uncovered that 5,300 employeesopened as many at 1.5 million unauthorized deposit accounts andsubmitted more than 560,000 fraudulent credit card applications.California and federal regulators fined Wells Fargo a combined $185million for the widespread illegal practices.
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