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Wells Fargo is getting walloped by their fraudulent accounts scandal

Nov 17, 2016, 20:11 IST

Protestors run by a defaced sign at a Wells Fargo Bank during Occupy Oakland's general strike on November 2, 2011 in Oakland, California.Justin Sullivan/Getty Images

Wells Fargo has seen a dramatic decrease in new account openings after its fake accounts scandal.

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In a release on Thursday, the bank announced that the number of new accounts opened in October fell by 27% from the month before and 44% from October 2015.

Additionally, Wells said that customer-initiated account closures increased by 3% over the previous month and the year before.

This comes in the first full month after the revelations that the bank had opened as many as 2 million accounts for customers without their knowledge. This led to a Congressional investigation and the resignation of former CEO John Stumpf.

"In October, we were pleased to see that in general our existing customers were actively using their accounts and valued their relationships with Wells Fargo," said new CEO Tim Sloan in the release.

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"As expected, we continued to see declines in new account openings. We remain focused on meeting our customers' financial needs by providing great service and quality products and will provide our next update in mid-December."

Existing account activity such as debit card sales remained steady while other metrics such as teller interactions and customer satisfaction surveys dipped.

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