THE SAGA CONTINUES

CA Opens Criminal Probe Into Wells Fargo

More fallout from massive accounts scandal.

Wells Fargo suffered another setback Wednesday as the California Attorney General's Office launched a criminal investigation into the banking giant over allegations it defrauded thousands of customers. Attorney General Kamala Harris signed off on a seizure warrant authorizing access to customer records and other documents, Reuters reported. Harris said there is sufficient reason to believe the bank committed felonies with its actions. Wells Fargo spokesman Mark Folk told the Los Angeles Times on Wednesday that the bank would fully cooperate in the investigation. The bank has faced growing scrutiny in recent weeks over accusations that thousands of its employees opened accounts for customers without their permission, damaging credit ratings and resulting in major overdraft fees. The U.S. Consumer Financial Protection Bureau ordered the bank to pay $190 million in fines, estimating that about two million accounts were opened without customers’ knowledge to meet internal sales targets. The scandal prompted CEO John Stumpf to resign last week after he was grilled at a congressional hearing.