Wells Fargo terminates 4 senior managers in ongoing sales practices investigation

Wells Fargo fires four current & former managers

Wells Fargo said Tuesday that it has terminated four senior managers based on its board of directors' ongoing independent investigation into the bank's sales practices.

In a release, the Wells Fargo said four current or former senior managers in community banking have been terminated.

• Claudia Russ Anderson – former community bank chief risk officer

• Pamela Conboy – Arizona lead regional president

• Shelley Freeman – former Los Angeles regional president (now head of consumer credit solutions)

• Matthew Raphaelson – head of community bank strategy and initiatives

The board met in January and discussed withholding bonuses for senior executives, including Chief Executive Timothy Sloan and Chief Financial Officer John Shrewsberry, The Wall Street Journal had reported.

These terminations follow the bank being fined $185 million by regulators including the Consumer Financial Protection Bureau over fraudulent accounts for some 2 million customers.

The practice known as cross-selling created scandalous headlines and shook investor confidence.

The bank fired more than 5,000 staffers over a five-year period after reviewing the credit card and checking accounts for which it "could not rule out the possibility that an account was unauthorized."

Wells Fargo later expressed regret and said it would take full responsibility for "any instances where customers may have received a product that they did not request."

Sloan, on the company's fourth-quarter earnings conference call last month, said the company continues to work to rehabilitate its image.

"We are leaving no stone unturned so that we can emerge from this a better, stronger company," Sloan said.

The executives listed on Tuesday will not receive a bonus for 2016 and they will forfeit all of their unvested equity awards and vested outstanding options, the bank said.

The board said findings are expected before its 2017 annual meeting.

— Reuters and CNBC's Jeff Cox contributed to this report.

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