Banking giant Wells Fargo gets OK for bankruptcy plan

Published 25.04.2017 23:26
Updated 25.04.2017 23:27

Retail banking giant Wells Fargo has fixed problems in its 2015 bankruptcy plan and will now be allowed to open new international branches, U.S. banking regulators said Monday.

The reprieve comes a day before a high-stakes shareholder meeting at which the bank's board is facing a no-confidence vote. Wells Fargo has struggled to right itself since September, when it reached a $190 million settlement with federal authorities over its sham accounts scandal.

The bank admitted to opening millions of accounts and moving money without customers' permission. A Treasury Department agency found this month found the bank's board as early as 2005 had received "regular" reports that employee firings and internal ethics complaints were related to unethical sales practices. Wells Fargo will have to file its next resolution plan by July 1, which will also be subject to review by regulators.

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