Fake accounts scandal could costs Wells Fargo $400 million

Fake accounts scandal could costs Wells Fargo $400 million

A 2016 scandal involving fake customer accounts could cost Wells Fargo $400 million in profits this year.

USA Today reports the bank made that estimate after the Federal Reserve restricted the bank's financial growth.

The restriction was part of a consent order that came down Friday, which means the bank cannot be involved in any major transactions or mergers.

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Wells Fargo also must replace four of its 16 board members by the end of this year.

In 2016, Wells Fargo employees opened more than three million fake accounts in customers' names in an effort to meet strict sales quotas.

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