Wells Fargo will no longer offer bonuses to brokers who persuade customers to take out loans from other parts of the bank as the firm grapples with fallout from a cross-selling scandal.
The lender's brokerage unit will keep its basic pay grid in place for 2017, but will do away with bonuses for selling clients products such as mortgages, securities-backed loans or lines of credit, according to a personal familiar with the change, who asked not to be identified discussing compensation policies.
The company has faced a barrage of criticism and calls for closer scrutiny since it was fined $185 million by regulators in September for possibly opening more than 2 million retail bank accounts without customer approval. The San Francisco-based firm is still the focus of investigations by federal, state and local authorities, and on Tuesday failed for a second time this year to persuade regulators that it can unwind its business without damaging the financial system.
