Tell us if you’ve heard this before: Wells Fargo employees, insufficiently trained and/or supervised, sold things to customers that the latter neither needed nor understood.

Of course you have! And you’re hearing it again today because, well, it happened again, in both the general and specific senses. Back when it was seen as the paragon of a well-run bank, Wells got rapped for selling levered and inverse ETFs without proper supervision. As we have since learned, Wells was not a well-run bank, and so obviously those improper sales went right on until last year, when the SEC found out about them.

The products are popular with some traders and are intended for daily, tactical trading…. The SEC’s settlement order said Wells Fargo’s employees advised clients from 2012 to 2019 to hold the funds “in many cases for months or years” in accounts, including those investors saving for retirement.

The SEC said the $35 million penalty would be used to compensate clients who had losses and held the funds for more than 30 days.

Wells Fargo to Pay $35 Million to Settle ETF Probe [WSJ]

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