Wells Fargo Close to Settling Risk- Management Claims With Regulators
April 19 2018 - 04:24PM
Dow Jones News
By Yuka Hayashi and Emily Glazer
Wells Fargo & Co. is close to settling claims by federal
regulators related to its risk management, involving a fine of as
much as $1 billion, people familiar with the matter said.
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 in its
mortgage and auto-lending businesses, the people said.
The settlement also could include increased regulatory scrutiny
of the bank's compensation to employees responsible for its sales
practices, according to a person familiar with the matter.
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 early
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 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.
--Ryan Tracy contributed to this article.
(END) Dow Jones Newswires
April 19, 2018 16:09 ET (20:09 GMT)
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