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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