Federal prosecutors open criminal inquiry of Wells Fargo’s hiring practices

(Reuters) – Federal prosecutors in New York have opened a criminal investigation into whether Wells Fargo (NYSE:) & Co violated federal laws by conducting fake job interviews, the New York Times reported on Thursday, citing people familiar with the matter.

Earlier this week, the bank said in a memo it was pausing a hiring policy that requires recruiters to interview a diverse pool of candidates, after another report by the New York Times said such interviews were often fake and conducted even though the job had already been promised to someone else.

The bank did not immediately respond to a Reuters request for comment.