Former executive: Wells Fargo acted like a “mafia” to quell internal criticism

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A former chief executive of European investment bank Wells Fargos criticized other executives’ lenders, saying they were acting like a mafia and failing to address regulatory concerns, the Wall Street Journal reported.

It’s like a mafia, literally, said Alicia Reyes, who left Wells Fargo in January 2020 and spoke to a former entrepreneur on a call in April 2020, according to the Journal. This place is just a ploy. There is no intention to solve problems or to build things. There is only smoke, mirrors and camouflage.

The pile of regulatory issues they face are so large, Reyes added, according to the Journal. There are much bigger issues that they brush under the rug as well.

The phone call was recorded by Ville-Valtteri Helenius, who had worked for the bank between October 2018 and December 2019, according to the Journal.

He was working on a project to ensure Wells Fargo was in compliance with UK financial regulation laws. He is suing the bank for unfair dismissal after reporting within the company that the bank was not complying with UK regulations.

The appeal was submitted to a UK court by Helenius and his lawyer for the trial.

The Journal reported that people familiar with the recording said Reyes did not know it was being recorded. Reyes is currently working for the Spanish lender Banco Sabadell as a director. She also works at Ferrovial, a Spanish construction company, as a manager, according to the Journal.

Reyes declined to comment for the Wall Street Journal.

We strongly deny the allegations and await the verdict of the courts. We operate within the regulatory framework and we take these obligations very seriously, ”a Wells Fargo spokesperson said in a statement to The Hill regarding the UK lawsuit.

“Since joining Wells Fargo in late 2019, CEO and Chairman Charlie Scharf has taken a series of actions to put these historic issues behind us, including adding new leadership, creating risk frameworks and effective control and evolving company culture, policies and procedures to create lasting change at Wells Fargo in the way we conduct ourselves, work with our colleagues and make decisions, added the spokesperson. word.

The Hill has contacted Reyess’ current employer, Banco Sabadell, for comment.

Updated at 13:26

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