Wells Fargo & Co. (WFC) is close to settling claims by federal regulators related to its risk management, involving a fine of as much as $1 billion, according to reports citing people familiar with the matter.
The settlement with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency is expected to be announced as soon as Friday. It will detail the bank’s failures to catch and prevent problems, including improper charges to consumers in its mortgage and auto-lending businesses, the report said.
The settlement also could include increased regulatory scrutiny of the bank’s compensation to employees responsible for its sales practices, the reports said.
Wells Fargo disclosed last week that the CFPB and the OCC had offered to the resolve civil investigations for $1 billion. The final terms of the settlement couldn’t be determined.
The settlement would be another blow to Wells Fargo and follows an unprecedented enforcement action by the Federal Reserve in February that barred the bank from growing past the $1.95 trillion in assets it had at the end of 2017. The Fed cited “widespread consumer abuses” in its rebuke.
It also would far exceed a $185 million fine the two financial regulators and a city official imposed on Wells Fargo in 2016 after finding the San Francisco-based bank had opened as many as 3.5 million accounts without customers’ knowledge or consent.
Wells Fargo has been under investigation by federal and state regulators across different businesses since the sales practices scandal erupted in 2016.
by RTTNews Staff Writer
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