A senior Wells Fargo vice president, who had been illegally using a foreclosed home in Malibu, Calif., for hosting parties, was dismissed by the bank on the grounds of violation of the company's policies.

A well known daily reported that the neighbors saw the bank's executive spending weekends and hosting parties in the $12 million beach house, which was surrendered by a couple, who lost money in Bernard Madoff's Ponzi.

The internal investigation was concluded by Wells Fargo, with the dismissal of Cheronda Guyton, senior vice president of Wells Fargo Bank and head of commercial ORE, or owned real estate.

A statement issued by the bank said: "We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members."