It might be tougher for Wells Fargo to walk away from controversy.
An investigation into Wells Fargo and its ongoing operational struggles has led to the firing of four forex bankers hired by the company. This marks the latest concern involving employees at Wells Fargo engaging in questionable actions.
The internal investigation into Wells Fargo shows that the ongoing concerns with the company have spread long beyond the retail banking sector. The investigation is separate from what had occurred within the retail banking arm of the company.
It is unclear as to what caused Wells Fargo to fire a few of its forex bankers. This segment of the company is relatively small in comparison with other aspects of the group. The company typically does not send out any financial metrics or results for this part of the company.
Representatives for Wells Fargo say that the firing was within a sensible cause.
The forex industry has for years been susceptible to questionable practices. This comes as many forex pairs are often easy to adjust in value based on massive trade activities.
The move comes amid ongoing reorganization within the bank. Wells Fargo is ranked as the third-largest bank in the United States in terms of how many transactions it handles and how much they are worth.
The Wells Fargo company has been struggling in recent time with penalties and layoffs following the sales practices scandal that engulfed the company in recent time. The company struggled as employees were trying to pass off questionable mortgage investments onto the public. Illegal charges for mortgage and insurance products had also been levied onto many customers during this time period. Such issues led to nearly $5 billion in penalties.
The development in the Wells Fargo forex segment suggests that the ongoing concerns surrounding forex trading in the company could be separate from the mortgage issues. It is known that the forex segment of the company has been run by a different person in recent time. Former forex head Sara Wardell-Smith was moved to another part of the bank following the recent concerns in the region.
This development marks a significant worry in the forex industry as the forex reserves continue to grow. The forex reserves in the United States recently moved to the $400 billion mark. This comes as the forex market in the United States had become rather volatile in recent time with general uncertainty over where the market was going to move next. This is also occurring as the Chinese banks have bought nearly $300 million in forex investments in recent time.
Wells Fargo was still not among the banks on Wall Street that pled guilty in 2015 to charges relating to nearly $5 trillion in the foreign exchange market being heavily manipulated by currency traders as a means of getting better prices. Various groups like JPMorgan Chase, Bank of America and the Royal Bank of Scotland used private chats to collude in the forex market and alter it to get their customers better prices in an illegal manner. Wells Fargo was never found to have any involved in that affair.
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Such a surprising and shocking news on Wells Fargo. I must admit that you try your best to cover every niche of news/events/change/actions related to Forex. I know its not that easy to make it all.