The Fed: Wells Fargo chided by Fed’s Dudley over fake accounts scandal

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A woman walks past a Wells Fargo bank

Wells Fargo & Co. WFC, -3.09% was publicly criticized by a top Federal Reserve official over the scandal that came from the bank’s opening of millions of unauthorized accounts.

“Compensation, once again, seems to be at the center of a scandal,” said William Dudley, president of the New York Fed, in a speech on Tuesday in London.

“Neighborhood bankers were paid based on the volume of new accounts opened, apparently with utter disregard for whether customers wanted them or even knew about them. And, like mortgage brokers in the early 2000s, it appears that job security depended almost exclusively on meeting targets, regardless of how those targets were met.

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