The two-year-old horror story of Wells Fargo will not stop

Wells Fargo can not wake up from the nightmare that began exactly two years ago.

What initially seemed like a regular banking regulation – a $ 185 million payment to "business practices" – turned into a cascade of scandals that shook one of America's most reputable banks.

It began in September 2016, when Wells Fargo shocked the country and announced that it had laid off 5,300 workers over several years for creating millions of fake accounts.

Wells Fargo (WFC) has since replaced longtime CEO John Stumpf, dismissed unrealistic sales targets that led to misbehavior and apologized for abusing workers.

The bank hired the respected Elizabeth Duke to lead her board of directors, installed new directors and engaged in a splashing marketing campaign to clean up her act. The new CEO, Tim Sloan, is committed to discovering the mistakes of the past.

Yet the third largest bank in the United States remains in the turmoil of the controversy over false accounts – and other scandals continue to emerge. It portrays the image of a bank that has repeatedly abused its customers.

The nightmare hurts the business of Wells Fargo, not just his reputation. Growth has stagnated and the bank remains in the penalty zone with the regulators.

"Wells Fargo is still trying to sweep the broken glass – but they find it everywhere," said William Klepper, a professor at Columbia Business School.

"The problems are far more prevalent than in retail banking," said Klepper, who conducted a case study on the Wells Fargo crisis.

More abuse discovered

Beyond opening as much as With 3.5 million bank accounts and unauthorized credit cards, Wells Fargo admitted to charging customers mortgage fees they did not deserve and forced them to purchase car insurance they did not need . Some people have even recovered their cars.

More recently, Wells Fargo started paying back customers who were billed for pet insurance and other products that they did not fully understand. He has set aside $ 285 million to reimburse foreign exchange and wealth management clients for incorrect prices and fees.

And the bank discovered that some workers had changed documents about business customers – a finding that would have triggered an investigation by the Department of Justice. (The ministry declined to comment.)

Even worse, at the beginning of August, Wells Fargo said he was "very sorry" for having a computer problem that resulted in the seizure of hundreds of people.

Regulators are still spinning

Unsurprisingly, the Federal Reserve has not yet lifted the sanctions imposed on Wells Fargo in February for "abuse of large-scale consumption". Unprecedented sanctions threaten Wells Fargo by preventing the bank from growing.

"It was incredibly hard and a shock, but the scale and scope of the misdeeds justified it," said Isaac Boltansky, senior policy analyst at Compass Point Research & Trading.

The Fed said it would not raise the asset ceiling until it would be satisfied. Wells Fargo has cleaned up its law.

Wells Fargo stays in legal hot water beyond the Federal Reserve. Federal government agencies, including the Ministry of Justice, the SEC and the Department of Labor, and state attorneys general have launched Wells Fargo sales tactics investigations, according to the latest SEC filings that described probes as "at different stages".

Wells Fargo also faces lawsuits and other legal actions by former employees and former employees alleging retaliation after raising issues of professional misconduct. Nearly half a dozen Wells Fargo workers told CNNMoney in 2016 that they had been fired after calling the bank's Ethics Support Line.

Wells Fargo stock left in the dust

In a statement to CNNMoney, Wells Fargo said his goal was "to look closely at our company, to solve the problems we find and make things right for all our stakeholders."

Wells Fargo highlighted the progress made by conducting a comprehensive third-party review, modifying its sales targets and reaching a $ 142 million settlement with its clients.

"While there is still work to be done, restoring trust with our team members, customers, communities, shareholders and regulators remains our top priority," said Wells Fargo.

The failures of Wells Fargo have left its stock price behind the competitors. Although Wells Fargo is up 16% since the outbreak of the scandal two years ago, it is far behind the rally of 47% Citigroup (C) and 70% peak for JPMorgan Chase (JPM). Bank of America (LAC) almost doubled during this period.

"There is no doubt that the Wells Fargo scandals are responsible for the serious erosion of shareholder value," Klepper said.

Pressure on the CEO

This led some to question him about If Sloan, a veteran of the bank for three decades, is the right person to turn Wells Fargo. Sen. Democrat Elizabeth Warren, another Wells Fargo spokeswoman, called for Sloan's resignation a year ago.

John Taylor, CEO of the National Community Reinvestment Coalition, an alliance of 600 activist groups that is pushing banks to lend to underserved communities, acknowledged that Sloan had launched a stakeholder advisory council last year.

"It's the real deal – we think it's an honest attempt to be a better bank," said Taylor, who is unpaid for this role.

However, Taylor conceded that he was worried for "another shoe to drop" in Wells Fargo and can not say for sure if Sloan is the right person for the job.

"I'm happy to give him a chance," Taylor said.

Klepper said it was very difficult for a well-established insider like Sloan to adopt the kind of dramatic cultural change needed in Wells Fargo.

"It's part of the culture, it's integrated," said Klepper.

CNNMoney (New York) First published on September 7, 2018: 11:43 ET