Wells Fargo Agrees to $110 Million Fake Accounts Settlement

By Kartikay Mehrotra, Bloomberg News

Wells Fargo & Co. reached a $110 million settlement with customers nationwide over claims its employees set up fraudulent accounts to boost their own pay.

Revelations that Wells Fargo employees may have opened more than 2 million deposit and credit-card accounts without customers’ permission has prompted sweeping changes at the San Francisco-based lender. The bank eliminated a system of sales targets that regulators said encouraged workers to create fake accounts. It also fired or demoted five people who had served as senior managers in the consumer business.

Wells Fargo agreed six months ago to pay ...