JPMorgan Chase is conducting a "deep dive" investigation into its cross-selling practices, in light of the fallout from the phony account scandal at Wells Fargo.
Chief Financial Officer Marianne Lake said during a conference call with reporters Friday morning that the nation's largest bank has identified "issues" of concern at its branches, but has found no systemic problems related to cross-selling.
"We regularly review and make changes to the incentive plans for the branches," Lake said, noting that the company listens to feedback from customers and employees. "Having said that we are doing a deep dive, given the news."
Lake declined to provide details about the number of issues the bank had identified, though she indicated that it was a small number.
She also declined to discuss the nature of misconduct. In response to a question, however, she said that the company has not uncovered instances of employees creating fake accounts to meet sales goals.
The investigation comes as the phony account scandal at Wells Fargo continues to snowball.
Earlier this week, John Stumpf resigned as Wells' chairman and chief executive, amid allegations that branch employees created fake accounts to collect bonus pay. He was succeeded as CEO by Tim Sloan, who previously served as president and chief operating officer. Stephen Sanger, its former lead director, replaced Stumpf as chairman.
During the call with reporters on Friday, Lake said the investigation at JPMorgan has reaffirmed that the company's compensation structure encourages ethical behavior.
"The important point here is … our incentive compensation is designed for the right behaviors," Lake said.
Additionally, Citigroup officials have conducted and continue to conduct reviews of its consumer sales practices, Chief Financial Officer John Gerspach said Friday in answer to a question about reaction to the Wells Fargo scandal.
"At this point in time, we haven't identified anything suggestive of the type of problems with sales practices that were experienced at Wells," Gerspach said, speaking on a conference call about third-quarter results.
Brian Patrick Eha contributed to this article.
