Wells Fargo Fires More Than 100 For Coronavirus Relief Fund Abuse: Report - TheStreet

Wells Fargo Fires More Than 100 For Coronavirus Relief Fund Abuse: Report

Bank employees allegedly defrauded Small Business Administration seeking relief funds for themselves.
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Wells Fargo & Co.  (WFC) - Get Report has fired more than 100 employees for allegedly defrauding the U.S. Small Business Administration out of coronavirus relief funds, according to a published report.

The staffers made false claims in applications for “coronavirus relief funds for themselves,” according to an internal memo, Bloomberg reported.

The cases were tied to the Economic Injury Disaster Loan program and were outside the employee’s roles at the bank, according to the report.

Last week, JPMorgan  (JPM) - Get Report fired several employees for similar offenses, the FT reported.

Shares of Wells Fargo rose 6 cents, or 0.26%, to $23.31 in after-hours action.

The stock fell 6% in the regular session after the company posted third-quarter earnings that missed analysts' forecasts.

The San Francisco-based bank reported net income of $2.04 billion, or 42 cents a share, for the third quarter, vs. $4.61 billion, or 92 cents a share, in the comparable year-earlier quarter. Analysts polled by FactSet had been looking for earnings of 44 cents a share.

Net interest income was $9.4 billion, down $2.3 billion and below analysts' forecasts of $9.6 billion. Non-interest income was $9.5 billion, down $891 million. Average deposits rang in at $1.4 trillion, up $107.7 billion, or 8% from a year earlier.

Revenue came in at $18.9 billion, down from $22 billion in the third quarter of 2019 though above FactSet estimates of $18 billion.

The net income figure included $1.2 billion of operating losses, "largely due to customer remediation accruals," the bank said, as well as $718 million in "severance-related restructuring charges."