Today’s short post acts as an update to the March post in Financial Regulation Matters that discussed the bank’s fraudulent creation of up to 2 million fake bank accounts, for which it was fined $185 million. However, news over the past few days has revealed that, in fact, up to 3.5 million unauthorised customer accounts may have been opened instead. This post will therefore assess these claims and will then go on to look at what this ever-developing scandal is doing to Wells Fargo’s reputation – ultimately, the claim by major investor Warren Buffett, that the scandal is not materially damaging , may have already started to be proved wrong by developing events. As this issue has already been discussed in Financial Regulation Matters , there is little need to go over the scandal in any great detail again (a quick review of the scandal can be found here also). However, for us, the news that the 2 million figure for unauthorised bank accounts is likely to be increased upon inves...