Federal prosecutors are currently looking into forex trading conducted at Wells Fargo. The early stages of the investigation are being performed by the U.S. Attorney’s Office for the Northern District of California. Investigators are looking into a single trade that involved one of Fargo’s clients, Restaurant Brands International Inc.
Questionable Forex Deal
The dining corporation involved with the investigation currently owns Popeyes, Tim Hortons, and _Burger King. _Brands International is a Canadian company that was formed thanks to a $12.5 billion merger between several fast food chains. The company is currently the third largest fast food owner in the world. Most experts view this possible forex misconduct as a much worse ordeal for Wells Fargo than the food company though, especially after the fake accounts scandal that tarnished the banking service’s name.
What this investigation does to Wells Fargo is call into question its international conduct overall. The banking company does a lot of international business, reminiscent to several other financial institutions. While the company continues to recover from its last security breach, other issues have emerged with its auto loans and life insurance. Investigators are now left to ponder Wells Fargo’s future in forex trading. Fargo confirmed early this week that four of its top forex employees had been relieved of their duties.
Previous Fargo Controversies
The banking giant suffered a massive public relations hit when it was discovered the company opened millions of fraudulent savings and checking accounts. The accounts were opened by current Wells Fargo customers without their consent. Initial reports counted a total of two million fake accounts, but research performed this summer shows more than 3.5 million accounts were actually created. Fake accounts appeared to be a common practice at Wells Fargo dating back to 2009. The revelation cost CEO John Stumpf his job and the banking service was fined a total of $185 million.