Wells Fargo Nears Settlement With Government Over Fake-Account Scandal

Date : 02/21/2020 @ 4:07PM
Source : Dow Jones News
Stock : Wells Fargo and Company (WFC)
Quote : 29.75  0.98 (3.41%) @ 5:04PM

Wells Fargo Nears Settlement With Government Over Fake-Account Scandal

Wells Fargo (NYSE:WFC)
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By Ben Eisen and Rachel Louise Ensign 

Wells Fargo & Co. is nearing settlements with the Justice Department and the Securities and Exchange Commission over its long-running fake-account scandal, according to people familiar with the matter.

The bank could pay roughly $3 billion combined, some of the people said. The settlements could come as soon as Friday, the people said.

People familiar with the matter said the settlements are expected to be only with the bank, not with former executives. Regulators and prosecutors could still take action against individuals, these people said.

Charles Scharf, Wells Fargo's new CEO, has said his priority is resolving the bank's regulatory issues. The bank had previously disclosed the probe by the Justice Department and SEC, which is one of its biggest outstanding regulatory problems.

Investigators interviewed former executives including former Chief Executive Officer Timothy Sloan in connection with the probe, the Journal has reported.

The probe is related to the $185 million settlement the bank entered into with the Office of the Comptroller of the Currency, Consumer Financial Protection Bureau and Los Angeles City Attorney in 2016. That settlement brought to light that the bank had opened perhaps millions of fake accounts, spurring outrage among regulators, lawmakers and customers.

Days later, the Journal reported that federal prosecutors were in the early stages of an investigation into those same sales practices at Wells Fargo.

The potential settlement was earlier reported by the New York Times.

Write to Ben Eisen at ben.eisen@wsj.com and Rachel Louise Ensign at rachel.ensign@wsj.com


(END) Dow Jones Newswires

February 21, 2020 10:52 ET (15:52 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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