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- Former JPMorgan Broker Files racial discrimination suit against company
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- Julie Erhardt is SEC's New Acting Chief Risk Officer
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Wells Fargo CEO Belatedly Admits Bank Retaliated Against Some Whistleblowers
Amidst the bombastic commotion that followed Donald Trump’s surprising presidential election victory, Wells Fargo CEO Timothy Sloan went public with an admission that some reports of bad behavior to the bank’s ethics line weren’t handled appropriately. The remarks, made during an employee town-hall meeting in Des Moines, IA, follow allegations that some employees faced retaliation for reporting issues that later came to light as part of its sales-practices scandal.
While emphasizing that the “majority” of cases were handled appropriately, Sloan tried to reassure employees that the bank will continue its investigation and, “if we find complaints were mishandled, then we will take action to make it right.”
Mr. Sloan said the bank did make changes to its ethics-line process in consultation with a third party. Those changes are being validated by the bank’s internal audit team, he said.
Mr. Sloan also said that the bank launched its first ethics and integrity survey last month, with responses from more than 7,000 employees who identified “areas for improvement.” Mr. Sloan said the bank will use those findings to help strengthen future plans around ethics and integrity. The bank will share highlights from the survey later in November, he said.
The Wall Street Journal this week detailed how problems flourished in Arizona, one epicenter of questionable sales practices, according to a letter sent anonymously to Wells Fargo executives that was reviewed by the Journal. Employees are waiting to see how the bank responds and, given past alleged instances of retaliation against those who reported problems, whether there will be any attempt at reprisals to the letter, according to current employees and managers.