Wells Fargo is under investigation after its employees accused the bank of conducting sham interviews to satisfy diversity requirements.
The Federal prosecutors in Manhattan have launched a criminal investigation into Wells Fargo, the nation’s third largest bank’s hiring process after reports surfaced alleging the bank of breaking the law.
The criminal investigation came after the bank’s current and former employees alleged anomalies in the bank’s hiring process, claiming that they were told by superiors to interview people of color and women even though the hiring decision had already been made.
At the time of writing, the investigation is in its early stages and no charging decisions have been made. The source who wanted to speak in anonymity also revealed that the investigation is being led by a recently created civil rights unit within the office.
Damian Williams, the U.S. attorney for the Southern District of New York’s spokesman declined to comment.
Last month, the New York Times released a report former Wells Fargo employee Joe Bruno revealed that bank managers interviewed applicants considered diverse for jobs already promised to others.
After Bruno spoke up, he was reportedly fired by the bank.
According to the company’s 2020 statistics, Wells Fargo is currently employing more than 235,000 people, 13% of whom are Black. Another 17% are Latino and 55% are white.
Amid the allegations and criminal investigation, Wells Fargo released an official statement but did not directly address the reported opening of a federal criminal investigation.
“No one should be put through an interview without a real chance of receiving an offer, period. The diverse slate guidelines we put in place are meant to increase diverse representation across the company and we can see meaningful results in our hiring data since 2020,” Wells Fargo said in a statement.
“At the same time, it’s important that implementation of our guidelines is consistent. Earlier this week, the company temporarily paused the use of its diverse slate guidelines. During this pause, the company is conducting a review so that hiring managers, senior leaders and recruiters fully understand how the guidelines should be implemented – and so we can have confidence that our guidelines live up to their promise.” The company added.
The allegations surfacing against Wells Fargo that prompted a criminal investigation is reportedly similar to that of Brian Flores and other black football coaches.
Flores and other coaches have accused the NFL of conducting sham interviews to satisfy diversity requirements with no intention of actually hiring someone of color. The NFL has defended its hiring practices.
