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Wells Fargo Account Scandal Includes Small Businesses

The Wells Fargo bank scandal includes thousands of small businesses, says U.S. Senator David Vitter (R-Louisiana). Wells is the second largest U.S. bank by assets, eclipsed only by Chase Bank, and is the largest participant in the SBA (7a) loan program.

In a Sept. 29 letter viewed by Reuters on Tuesday, Sen. David Vitter, a Louisiana Republican, demanded that Wells Fargo Chief Executive John Stumpf provide a "full accounting" of customers affected. Vitter is a member of the U.S. Senate's banking committee and also heads its small business committee.

Discussions between congressional staffers and Wells Fargo "have indicated that the fraudulent activity of your employees was not limited to Wells Fargo's consumer banking operations," Vitter wrote. "Thousands of small business owners were impacted by this fraud."

…An ex-Wells Fargo business banker, who declined to be identified, said employees at his former branch were required to sell products to small business customers such as hair-salon owners and carpet cleaners in packages of three - regardless of whether they needed them. — Suzanne Barlyn, Reuters

The bank has posted a message to its customers on its website acknowledging fault and outlining remedial steps.

In this video posted September 20, 2016, on Senator Vitter's YouTube channel, he questions CEO Stumpf about the massive banking fraud and expresses concern that Wells' SBA (7a) loans may also have been caught up in the deceptive practices:


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