The bank's delay in investigating the case forced the plaintiff to resign from the bank in July 2021, according to the complaint. Wells said that it takes allegations of misconduct "very seriously."

The reduction of 350-400 roles comes weeks before the Ann Arbor, Michigan-based lender is set to report its fourth quarter earnings.

Virginia and Montana both introduced new bills in the past month, potentially joining several other states in enacting policies that would increase business opportunities for lenders.

The California-based wholesale lender also known as RMK Financial Corp. had hired close to a dozen account executives in December but stopped doing business on January 31.

The layoffs were a result of the bank's decision to exit the channel, a spokeswoman confirmed.

The Texas-based company is adapting to "members' needs and changes in the marketplace," which resulted in a scale down in some divisions, a spokesman said.

Wells Fargo kept Chief Executive Charlie Scharf's pay at $24.5 million for 2022, a year in which both profit and stock tumbled and the bank continued to grapple with the fallout from a raft of scandals.

Since new policies were implemented following findings of improper influence by employees, some have neglected reporting, but corrective actions still met their intended goal because students and recent grads disclosed ties.

Despite the reduction from last year, "there are some signs that that production is coming back" in mortgage, the bank's CEO said.

Its "enhanced" oversight procedures now include a multilayered review process and if discriminatory bias is confirmed, an appraiser "will be subject to removal," the department said