Wells Fargo: 400-Branch Closing Unrelated to Fake-Account Scam

Irregularity-plagued Wells Fargo plans to close more than 400 branches by the end of 2018, but the San Francisco-based bank claims the move has nothing to do with the scandal of its employees pressured to open millions of fake customer accounts in order to reach unrealistic sales goals.

Wells Fargo made the branch closing announcement on Friday, according to Fox 43.

Wells Fargo CEO John Shrewsberry said the decision to close additional branches had nothing to with the fake-acoount scandal, noting that other banks are closing locations while making automated systems and online banking programs available to their customers.

Wells Fargo confirmed to CNN that it had fired 5,300 employees related to shady behavior that went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services.

Federal regulators said the phony accounts earned the bank unwarranted fees and allowed employees to boost their sales figures and make more money.

Because of the fake-account scandal, sales goals were eliminated and a federal investigations began, according to The Business Journal. John Stumpf, who was CEO at the time, stepped down in the midst of overwhelming criticism.

According to New Jersey Online, Wells Fargo plans to close 200 of the branches by the end of 2017 and another 200 the following year.

Although the company has announced the future closings, it hasn't disclosed the locations.

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