Wells Fargo Is Being Examined Over 401K Policies

According to a Wall Street Journal report on Thursday, banking giant Wells Fargo is in the negative spotlight again.

The company is being examined by the Labor Department over whether or not the bank pushed participants in low-cost corporate 401(k) plans to roll their holdings to individual retirement accounts that were more expensive at the bank.

The WSJ cited one person familiar with the inquiry.

The Labor Department is also examining whether or not customers were encouraged to buy in-house funds in order to raise more money for the bank.

According to sources who spoke to the WSJ, Wells Fargo’s has workers retention goals associated with keeping retirement accounts in-house.

Disclaimer: We have no position in Wells Fargo & Co. (NYSE: WFC) and have not been compensated for this article.