Wells Fargo & Co (NYSE:WFC) has been cleaning house in its foreign exchange dealing room, firing four employees for overcharging clients.
According to the Wall Street Journal (WSJ), an internal review indicated that only about 35 companies out of roughly 300 were charged the fee that had been mutually agreed on a foreign exchange transaction handled by Wells Fargo.
Federal prosecutors launch their own investigation
The WSJ reports that four bankers have been fired, while federal prosecutors have launched their own investigation into Wells Fargo’s operations.
“Wells Fargo remains committed to our foreign exchange business,” the San Francisco-based bank said in a statement. “If we find a problem, we fix it.”
READ: Wells Fargo shares drop in premarket as quarterly results disappoint
The latest setback for the financial services company comes after disappointing third quarter financials.
Profit and revenue were both dented by legal issues.
It reported a US$4.57bn profit, which amounted to 84 cents per share, including a US$1bn charge due to regulatory investigations, which was less than the market anticipated.
Revenue was lower compared to the same quarter of the previous year, at US$21.93bn from US$22.33bn.
Diversified financial services provider
Wells Fargo provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance through banking stores, the Internet and other distribution channels to consumers, businesses and institutions in 50 states, the District of Columbia, and in other countries.