Wells Fargo cannot seem to get it right. This is especially disturbing considering its many previous violations and promises that all its problems have been solved. And it is even more disturbing that in this case the relationship was not just with a customer, but a pension fund for whom it was acting in a fiduciary capacity. Gretchen Morgenson and Emily Glazer report at the Wall Street Journal:
Wells Fargo has acknowledged that it pocketed fee rebates that should have been passed on to a public pension fund in Tennessee while acting as its trustee, according to correspondence between the fund and the bank reviewed by The Wall Street Journal.
The bank owned up to the problem in late April after the Chattanooga Fire & Police Pension Fund had spent months questioning Wells Fargo officials about fee practices in its institutional retirement and trust unit, according to the correspondence. The bank said in the correspondence that the improperly retained fee rebates resulted from “a system set-up error.”
In a statement for this article, the board of the Chattanooga pension fund said it was concerned that other trust and fiduciary accounts overseen by Wells Fargo may have been “similarly harmed.”