Wells Fargo subject to SEC investigation, CFPB settlement | Techy Kings


The Securities and Exchange Commission has joined the Justice Department in investigating Wells Fargo’s diversification hiring practices.

Both agencies “have conducted formal or informal inquiries or investigations into hiring practices related to diversity,” the company said in an SEC filing on Monday.

Wells Fargo did not return a request for further comment.

The investigation was prompted by a May New York Times article alleging that the bank’s policy of requiring managers to interview a diverse group of people for some jobs led to a series of fake interviews of women and non-white candidates for positions that were no longer open.

The bank discontinued the policy after the Times letter, and reinstated it in August with several updates: Half of the candidates for a given position will continue to be diverse, but the policy now applies to roles based on job level rather than compensation. A previous version of the policy required that diverse individuals make up half of all candidates for positions that pay $100,000 or more a year.

“We are recommitting to our diverse candidate list guidelines with changes that will help clarify and simplify the process and lead to a better experience for all candidates, internal and external,” Wells Fargo Chief Human Resources Officer Bei Ling said at the time. “Wells Fargo has seen a measurable increase in diverse representation over the past several years, and we believe that diverse candidate list guidelines have been one of many contributing factors. Our review helped us identify opportunities where we can further improve the way the guidelines are implemented.”

An SEC spokesperson told Banking Dive via email that “the SEC does not comment on the existence or non-existence of a possible investigation.”

In an SEC filing, Wells Fargo also announced that it would settle several matters with Consumer Financial Protection Bureau.

Those things include cases involving car loans, consumer deposit accounts and mortgage loans, according to regulatory filings.

The settlement is likely to come from the $2 billion the bank set aside last quarter to deal with regulatory “history”. matter.

“There are no guarantees regarding the outcome of these discussions,” the bank said in the filing.

The CFPB also declined to comment.


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