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A push by Wells Fargo to get existing customers to buy more of
the bank's products, known as "cross-selling," was at the center
of a fake customer accounts scandal that has dogged the bank for
two years.
Wells Fargo failed to disclose to investors that the success of
its cross-selling was built on sales practice misconduct,
Underwood's office said.
"The misconduct at Wells Fargo was widespread across the bank
and at every level of management – impacting both customers and
investors who were misled," New York Attorney General Barbara
Underwood said in a statement.
The bank, which has paid hundreds of millions of dollars in
regulatory fines and settlements related to the scandal, said in
a statement it had previously accrued the penalty costs.
Since the sales scandal came to light in 2016, Wells Fargo has
overhauled management and is trying to regain trust, including
through an ad campaign saying that Wells Fargo was established
in 1852 and "re-established" in 2018.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Saumyadeb
Chakrabarty and Sai Sachin Ravikumar)
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