FALLOUT

Wells Fargo Picks Directors for Probe Into Sales Scandal

Picks panel to investigate sales scandal.

Wells Fargo has set up a four-member committee to conduct an internal investigation into the sales scandal that has rocked the banking giant. Wells Chairman Stephen Sanger and Vice Chair Elizabeth Duke are two of those selected to lead the committee, Reuters cited a source familiar with the situation as saying. Enrique Hernandez, chair of the board’s risk committee, and Donald James, a director on the board’s finance and risk committees, have also been chosen. The committee will be joined by law firm Shearman & Sterling and the board’s human-resources committee to conduct the probe into why bank employees were pushed to force services on customers and set up accounts without clients’ knowledge. The bank agreed to a $190 million settlement over the matter with two regulators and the city attorney of Los Angeles. More than 5,000 employees were fired for their involvement.