WSJ: Fed investigation into Wells Fargo broadens

NEW YORK – The Wall Street Journal is reporting that a federal investigation into Wells Fargo has broadened to include its wealth-management division.

Wells Fargo is wrestling with aftermath of a scandal in its retail banking unit in which, among other things, employees opened up millions of fake accounts without customer authorization.

The Journal reports that the Justice Department is now investigating whether Wells Fargo made inappropriate recommendations or referrals, or failed to inform customers about potential conflicts of interest.

A bank spokesman declined to comment on the report Friday.

Earlier this year, the Federal Reserve put significant restrictions on the San Francisco bank citing “widespread consumer abuses.” The bank is replacing four members of its board and its asset level has been frozen by the Fed until internal controls are improved.