A whistleblower lawsuit is alleging Wells Fargo (WFC) employees may have signed customers up for Prudential (PRU) insurance policies they did not authorize. Insurance regulators in New Jersey and California are looking into the claims. This comes after Wells employees were caught opening unauthorized accounts to make sales goals.
Jim Cramer says despite the scandals, Wells Fargo has been a decent performer in the Action Alerts Portfolio, but he pointed out Wells has underperformed other banks.
He says AAP is in a trap with Wells Fargo and he prefers Citi (C) another AAP holding.