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‘Bad’ incentives, poor communication behind the Wells Fargo sales scandal: Fed’s Dudley

Bad incitement structures for employees and a lack of communication to management contributed to Wells Fargo’s sales practices disrepute, Federal Reserve Bank of New York president William Dudley replied on Wednesday.

Dudley, who spoke at an event related to banking culture, rumoured that Wells Fargo employees were given “really bad” enticements. He added that when employees complained, it went up the chain of compel but concerns either were not heard or ignored.

The bank reached a $190 million camp with U.S. authorities in 2016 over its employees opening accounts in people’ names without their permission to hit sales targets.

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