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The Markets
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Financial Services

Wells Fargo & Co shares down as it uncovers more fake accounts

About 190,000 accounts were given unnecessary fees, Wells Fargo added.

US bank Wells Fargo & Co (NYSE:WFC) shares lost 0.70% on Thursday as its fake bank account scandal just got more scandalous.

Analysis has shown up to 1.4mln more fake accounts have been found to total up to 3.5mln - from an earlier tally of around 2.1mln.

About 190,000 accounts were given unnecessary fees, Wells Fargo added. That's up from 130,000 previously.

Wells Fargo says employees created two-thirds more bogus accounts than initially thought https://t.co/AVak0KddwO pic.twitter.com/NztAKDDaib

— Bloomberg (@business) 31 August 2017

The bank is still struggling to put the scandal that began in 2016 in the rear view mirror.

Then, it had emerged that staff trying to meet strenuous sales targets may have opened around 2.1mln accounts, which had not been authorised by customers, over five years to 2015.

"We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank," Wells Fargo chief executive Tim Sloan said in a statement.

Wells Fargo is now reportedly scrapping its sales goals, installing new management and paying out millions in refunds.

On Wednesday, billionaire investor Warren Buffett, whose Berkshire Hathaway is Wells' largest shareholder, told CNBC that when one puts a spotlight on a large financial institution like Wells Fargo, they're likely to find something.

"What you find is there's never just one cockroach in the kitchen when you start looking around," Buffett reportedly said.

Wells shares lost 0.70% to $51.

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