The banking group agreed to settle criminal and civil investigations with the Justice Department and the Securities and Exchange Commission over its fraudulent fake-account episode.

Wells Fargo has agreed to pay $3 billion to resolve a years-long saga that saw employees open fake accounts or those without customers' consent.

The agreements, announced last Friday, were with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Justice Department’s Civil Division, and the Securities and Exchange Commission.

The San Francisco-based bank collected millions of dollars in fees and interest to which the company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, a statement from the US Attorneys Office said.

“This case illustrates a complete failure of leadership at multiple levels within the bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” United States Attorney Nick Hanna said.

The scandal damaged the image of Wells Fargo, one of the largest US banks; it prompted a boardroom shakeup and compliance overhauls. The episode also shed light on the pressure that financial firms can put on staff to hit sales targets if incentives aren't aligned with long-term interests of a firm and clients.

Authorities and the bank have entered a deferred prosecution agreement lasting three years.

Wells Fargo also entered a civil settlement and a "cease-and-desist" proceeding.

The $3 billion payment includes a $500 million civil penalty to be distributed by the SEC to investors, the US Attorneys Office said.

“When companies cheat to compete, they harm customers and other competitors,” Deputy Assistant Attorney General Michael D Granston of the Department of Justice’s Civil Division, said. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customers’ private information."