Wells Fargo Enters into Consent Orders with OCC and CFPB
April 20 2018 - 09:14AM
Business Wire
Wells Fargo & Company (NYSE:WFC) announced today it has
entered into consent orders with the Office of the Comptroller of
the Currency (OCC) and Consumer Financial Protection Bureau (CFPB)
that address matters pertaining to the company’s compliance risk
management program and issues regarding certain interest rate-lock
extensions on home mortgages and collateral protection insurance
(CPI) placed on certain auto loans. The company has previously
disclosed publicly the issues regarding interest rate-lock
extensions and CPI.
“For more than a year and a half, we have made progress on
strengthening operational processes, internal controls, compliance
and oversight, and delivering on our promise to review all of our
practices and make things right for our customers,” said Timothy J.
Sloan, president and chief executive officer of Wells Fargo. “While
we have more work to do, these orders affirm that we share the same
priorities with our regulators and that we are committed to working
with them as we deliver our commitments with focus, accountability,
and transparency. Our customers deserve only the best from Wells
Fargo, and we are committed to delivering that.”
The orders, which are available in their entirety at the
respective web sites for the OCC and CFPB, require the company to
pay $1 billion in total civil money penalties. As a result, the
company will adjust its first quarter 2018 preliminary financial
results by an additional accrual of $800 million, which is not tax
deductible. The accrual reduces reported first quarter 2018 net
income by $800 million, or $0.16 cents per diluted common share, to
$4.7 billion, or 96 cents per diluted common share.
Under the consent orders, Wells Fargo will also be required to
submit, for review by its board, plans
detailing its ongoing efforts to strengthen its compliance and
risk management, and its approach to customer remediation
efforts.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investments, mortgage, and consumer and commercial finance through
8,200 locations, 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 42 countries and territories to
support customers who conduct business in the global economy. With
approximately 265,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was
ranked No. 25 on Fortune’s 2017 rankings of America’s largest
corporations.
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version on businesswire.com: https://www.businesswire.com/news/home/20180420005391/en/
Media Contacts:Kate Pulley, 917-260-1673 or
646-634-6515catherine.pulley@wellsfargo.com@CPulleyWForRichele
Messick,
651-724-5234Richele.J.Messick@wellsfargo.com@RJMessickWForInvestor
Contacts:John M. Campbell,
415-396-0523John.M.Campbell@wellsfargo.com
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