Wells Fargo says 'working to address, fix' retail banking sales practices
Says "We apologize and acknowledge that we did not act quickly enough to stop the activity and remediate customer harm. We are working to address and fix, as our objective is to put the customers' interest first 100% of the time." Says 82.7 million deposit accounts and 10.8 million creditcard accounts were examined to quantify the financial harm stemming from potentially unauthorized accounts. Says that approximately 115k, or 0.12%, of the 93.5 million accounts examined had incurred a fee, adding that "We have refunded $2.6 million to those customers." Says has made changes to enhance oversight, expand customer transparency, and improve the customer experience. Says will continue to invest in process enhancements and proactive monitoring. In the month of September, "Overall customer traffic to branches and call centers remained at levels typical for September. Customers continued to use their accounts. Deposit balance growth was in-line with prior trends. Continued primary checking growth, but growth had moderated. Debit and credit card transaction volumes were up from September 2015." In September, says customer visits with branch bankers were down 10% YoY, consumer checking account opens down 25% y/y, credit card applications down 20% y/y." In consumer lending, says Mortgage referrals from Retail Banking were down 24% in September from August. Says client transaction activity in wealth and investment management was muted in September, "but this largely reflects the market environment." Comments from slides that will be presented on the Q3 earnings conference call.