July 13 (Reuters) - The scandal surrounding Wells Fargo (NYSE:WFC) & Co's WFC.N opening of up to 2.1 million accounts in customers' names without their permission came to the fore in September. On Sept. 8, the company announced a $185 million settlement with regulators to atone for the sales abuses.
The third-largest U.S. bank by assets has since encountered numerous government probes and lawsuits.
In response, Wells Fargo has fired senior managers, changed pay incentives for branch staff, separated the role of chairman and CEO and faced a difficult shareholder vote at its annual meeting. http://tmsnrt.rs/2tNpLd1
John Stumpf, the company's CEO when the scandal broke, also announced his retirement in October, following weeks of intense public pressure. He was succeeded by Tim Sloan.
The bank still faces probes from federal, state and local government agencies, including the U.S. Department of Justice, as well as a number of private lawsuits, according to regulatory filings.
Here are the important events that took place since news of the sales scandal emerged:
DATE
USN
NEWS
Sept. 8, 2016
Agrees to pay $185 million in fines and $5 million in penalties to customers, as part of settlement with Los Angeles officials who accused the bank of pushing customers into multiple, fee-generating accounts that they never requested.
Mid Sept, 2016
Bank's independent directors launch investigation into sales practices; engage law firm Shearman & Sterling LLP.
Sept. 19, 2016
CEO John Stumpf appears before the Senate Banking Committee, comes under fire for his oversight. Says customers who had bogus accounts opened in their names will be compensated for damage to credit rating.
Democratic Senators Jeff Merkley and Elizabeth Warren ask him to resign. Warren says Stumpf should return his salary and be criminally investigated.
Sept. 27, 2016
Carrie Tolstedt, head of the retail division at the centre of the sales scandal, leaves ahead of her scheduled retirement on Dec. 31; to get no severance or equity awards.
Stumpf to forgo equity awards worth $41 million and salary.
Sept. 27, 2016
Bank eliminates product sales goals in retail division.
Oct. 10, 2016
Forms new payments, virtual solutions and innovation business group. Appoints new members to its operating committee, and leaders for consumer lending and wholesale banking.
Oct. 12, 2016
Stumpf retires as CEO and chairman. Tim Sloan appointed CEO. Names Steve Sanger independent chairman and Betsy Duke independent vice chair.
Oct 14, 2016
Reports 3.7 percent drop in Q3 profit as it sets aside funds for potential legal costs.
Nov. 29, 2016
Amends by-laws to ensure board chairman and any vice chairman be independent directors.
Jan. 10, 2017
Introduces new incentive compensation plan for team members in retail branches and call centres.
Jan. 13, 2017
Q4 profit falls 6.4 percent; says still analyzing whether additional unauthorized accounts were opened in 2009 and 2010.
Feb 20, 2017
Board elects two new independent directors, Karen Peetz and Ron Sargent.
Feb 21, 2017
Terminates employment of four current and former managers in Community Bank division due to the sales practices. Says none will receive a 2016 bonus and each will forfeit all outstanding equity awards and stock options.
March 1, 2017
Says no 2016 cash bonuses for eight senior executives, including CEO Sloan and CFO John Shrewsberry; reduces three-year equity awards made
in 2014 by up to 50 pct for the executives.
April 13, 2017
Posts nearly flat Q1 profit. Berkshire Hathaway (NYSE:BRKa) says to sell 9 million http://reut.rs/2tM1owd shares and withdraw its application for permission to boost its ownership stake above 10 percent.
April 25, 2017
Shareholders rebuke the bank at the annual meeting; offer scant support for a dozen directors, including chairman
May 6, 2017
"At Wells Fargo, there were three significant mistakes, but one dwarfs all of the others ... You have to be careful what you incentivize. There was an incentive system built around cross-selling ... That was incentivizing the wrong kind of behaviour," said Warren Buffett at Berkshire's 52nd annual meeting. "The main problem was they didn't act when they learned about it."
May 11, 2017
Doubles cost-cutting target at investor day.
June 13, 2017
Branch employees paid for the first time in May using new goals that focus on customer service, says branch banking chief Mary Mack at an investor conference.
June 28, 2017
Receives no objection to its 2017 capital plan from the U.S. Federal Reserve.
July 13, 2017
The Federal Reserve is prepared to act against the directors of Wells Fargo if an investigation deems it appropriate, Chair Janet Yellen said while testifying before the Senate Banking Committee.
Source: Company filings, company presentations, Reuters
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