BUSINESS NEWS
FEBRUARY 22, 2022 / 11:46 PM
Wells Fargo says federal agencies reviewing 401(k) plan
(Reuters) - Wells Fargo & Co said on Tuesday U.S. government agencies, including the Department of Labor, are reviewing certain transactions in the bank’s 401(k) plan.
The fourth-largest U.S. bank said in a filing that federal government agencies “are reviewing certain transactions associated with the employee stock ownership plan feature of the company’s 401(k) plan, including the manner in which the 401(k) plan purchased certain securities used in connection with the company’s contributions to the 401(k) plan.”
401(k) plans are retirement packages offered by American companies to their employees.
9 replies (most recent on top)
Of course, Wells could have completely avoided this problem by providing the 401k match within the employee’s existing investment choices.
But no, that would have been too little self dealing.
It would not surprise me if the bank got in more trouble for offering crummy in house funds instead of wide ranging choices like other banks have always done.
I read the article. It is talking about how the WFC shares were acquired to provide to the recipients, not whether it was the right thing to do, or that it was an employee complaint. The 401k plan details out how the shares are distributed and how they are priced, but whether Wells Fargo issues the shares or buys them on the open market, I think that is what is being investigated.
Doubt that there will be any settlement because this does not appear to be about the rights or a complaint of an employee(s).
my roboadvisor rebalanced right out of the stock back into a better fund
This year the stock plan went from a quarterly match to an annual at the end of the year... This means that the employees ability to manage that match throughout the year is lost. I estimate that by not having the esop match to re-allocate to other funds likely cost me several grand, (historically the 4th quarter is always the strongest earnings. Also, since Empower is separate from WF... It's possible that they are issued shares at a much lower amount throughout the year, only to effectively "sell" it to us by our match at the end of the year at a higher amount. This latter suggestion is pure speculation....but WF never makes HR moves unless it's a boon to them or there is risk that needs to be avoided. #wellsfargoway
boring, no real info. Most likely some employee told the labor department they didn't get the best price for the day or something. Then the labor department and other agencies line up looking for a way to get millions in fine kickbacks. Then Charlie looks for more ways to cut expenses to pay for said fine kickbacks with the end result employees getting hurt.
Compensating employees thru the 401K with company stock is just WF crazy stupid . Now we all get to pay the price so to speak.
i will friggin laugh if this turns out to be
- group of employees pi---d that the stock in 401k went down
- group of employees then file suit to say they shouldn't have gotten stock and over concentrate them
- stock goes back up and higher than what they actually made
- ruling that group of employees is right and that they should have received cash instead and therefore removes the stock and gives them cash into account and they lose the stock value appreciation
- group of employees end up with less money than if they just shut up
everyone wants free money and the angle that gets them the most
Why stop at ripping off your customers when you can rip off your own employees as well?
What does this mean? More unethical business practices coming to light?