Timeline of the Wells Fargo Accounts Scandal - ABC News 11/2/16, 3(30 PM

Timeline of the Wells Fargo Accounts

Scandal
Wells Fargo is embroiled in a scandal over assertions that bank employees
opened accounts without customers authorization.

Here's a timeline of key events since the allegations came to light:

Sept. 8, 2016

The alleged misconduct was revealed when the Consumer Financial

Protection Bureau (CFPB), the Los Angeles City Attorney and the Office of
the Comptroller of the Currency (OCC) fined the bank $185 million,
alleging that more than 2 million bank accounts or credit cards were
opened or applied for without customers' knowledge or permission
between May 2011 and July 2015.

A bank official acknowledged that it had terminated some 5,300

employees, roughly 1 percent of the workforce, in relation to the
allegations, and the bank issued a statement saying, "We regret and take
responsibility for any instances where customers may have received a
product that they did not request." Read our story from the time, or see
how the scandal affects customers.

Sept. 13, 2016

The bank announced that it would be ending its controversial employee

sales goals program that was at the center of the allegations effective Jan. 1,
2017.

According to the Los Angeles City Attorney, employees were opening and
funding accounts without customers' permission or knowledge in order to
"satisfy sales goals and earn financial rewards under the bank's incentive-

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compensation program."

The CFPB said the bank imposed the goals on its staff because it "sought to
distinguish itself in the marketplace as a leader in 'cross-selling' banking
products and services to its existing customers." Read our story from the
time.

The same day, Stumpf appeared on CNBC, where he rebuffed suggestions

that he resign. "I think the best thing I could do right now is lead this
company, and lead this company forward," he said.

Sept. 14, 2016

It was announced that the FBI and federal prosecutors in New York and
California were probing the bank over the alleged misconduct, a
development that opened the possibility of criminal charges.

Read our story from the time.

Sept. 16, 2016

The House of Representative's Financial Services Committee opened an

investigation into the bank's alleged misconduct as well as "the role of
Washington regulators in monitoring and investigating" the alleged
misconduct.

A letter sent to the bank's general counsel asked him to make four senior
executives available for transcribed interviews, including Carrie Tolstedt.
Tolstedt, who government filings say is in her mid-50s, was the head of
Wells Fargo's community banking division -- which oversees the banks
most consumers are familiar with -- until her retirement was announced in
July.

The CFPB and OCC did not comment.

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Read our story from the time.

The same day, three Utah residents filed what is believed to be the first
class-action lawsuit brought by customers against Wells Fargo over the
allegations. Wells Fargo declined to comment on the suit, which was filed
in U.S. District Court in Utah.

Read our story from the time.

Sept. 20, 2016

Stumpf appeared in front of the Senate Banking Committee, where Sen.

Elizabeth Warren, D-Massachusetts, called on him to resign and said he
should face criminal charges.

Republicans chided the embattled CEO as well, with Sen. Bob Corker, R-
Tennessee, saying Stumpf would be engaging in "malpractice" if the bank
didn't "claw back" money that it had paid to executives during the period
that the accounts were being opened without customers' permission.

Read our story from the time.

Sept. 22, 2016

A group of Senate Democrats asked the U.S. Department of Labor (DOL) to

open an investigation into whether Wells Fargo violated the Fair Labor
Standards Act (FLSA).

In response to the senators' request to the DOL, Wells Fargo spokeswoman

Jennifer G. Dunn told ABC News today that "our team members are our
greatest asset."

"We strive to make every one of them feel valued, rewarded and recognized
and we pride ourselves on creating a positive environment for our team
members, including market-competitive compensation, career-

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development opportunities, a broad array of benefits and a strong offering

of work-life programs," Dunn added.

The DOL acknowledged receipt of the letter and a spokesman, Jason

Surbey, said, "while we cannot discuss details of potential law enforcement
decision-making, we do take the concerns raised in the letter very
seriously."

Separately, Stumpf resigned from his position on the Federal Advisory

Council, which meets with the Federal Reserve four times a year to advise
it on banking and economic issues, effective today. The San Francisco
Federal Reserve Bank confirmed the move to ABC News.

Read our story from the time.

Sept. 23, 2016

In a letter shared with ABC News, six senators slammed Wells Fargo bank
for its use of forced arbitration clauses in its customer account agreements,
which the senators said enabled the company to keep its accounts scandal
out of the public eye and the courts for years, and asked embattled CEO
John Stumpf to provide information so that they can better understand
the situation at Wells Fargo and "prevent similar fraudulent practices in
the future."

Arbitration, mandated in some if not all basic agreements that customers

sign when they open accounts at the bank, "helps hide fraudulent schemes
such as the sham accounts at Wells Fargo from the justice system, from the
news media, and from the public eye," the senators wrote.

A Wells Fargo spokeswoman told ABC News at the time: "We are reviewing
the letter and will respond to the senators who requested this information
but have no further comment at this time."

Read our story from the time.

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Sept. 26, 2016

Two former Wells Fargo employees filed a lawsuit against the bank related
to the accounts scandal. The plaintiffs are seeking class-action status for
the lawsuit.

The suit, filed on Sept. 22 in California Superior Court by former

employees Alexander Polonsky and Brian Zaghi, seeks to represent
employees or former employees who worked for the bank during the last 10
years and who, the suit alleges, were either demoted, forced to resign, or
terminated, for not meeting impossible quotas the bank set as goals for
employees to open accounts on behalf of customers.

Wells Fargo officials said at the time that they "disagree with the
allegations in the complaint and will vigorously defend against the
misrepresentations it contains about Wells Fargo and all of the Wells Fargo
team members whose careers have been built on doing the right thing by
our customers every day."

"Wells Fargo works hard to foster a culture that is centered on doing what
is right for our customers and exhibiting high ethical standards and
integrity, and the vast majority of our team members serve our customers
best interests every day in every interaction," the statement added.

Read our story from the time.

Sept. 27, 2016

The bank's independent directors announced that Stumpf will forgo $41
million worth of promised compensation as well as his usual salary as they
launch an independent investigation.

The announcement came two days before Stumpf was set to testify at a
House hearing over the accounts scandal.

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The directors also announced that Tolstedt had left the company. She was
slated to leave at "year's end," according to a retirement announcement.

Tolstedt, who has been the subject of scrutiny in recent weeks, will not
receive a bonus for the year and will not receive severance pay, the
directors said in a statement. Similar to Stumpf, she will forgo promised
share compensation worth about $19 million.

Stumpf, who has been CEO since 2007, will also not receive a bonus, the
statement said.

Separately, in remarks prepared for Stumpf's appearance before the House

Financial Services Committee on Thursday, which were obtained and
reviewed by ABC, the CEO is expected to say that the bank is moving up
the date it will end its controversial sales program from Jan. 1, 2017 to Oct.
1, 2016.

Read our story.

This is a developing story and has been updated as new information has
become available.

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