Wells Fargo agrees to pay $1 billion to settle customer abuses

(Reuters) – Wells Fargo & Co has agreed to pay $1 billion in penalties to federal regulators to settle a probe into abuses at its auto and mortgage businesses, the bank and regulators said on Friday, confirming an earlier Reuters report.

FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S., February 10, 2015. REUTERS/Jim Young/File Photo

The settlement is the most aggressive move by regulators during the Trump administration to punish a major bank and follows revelations that the United States’ third-largest lender had opened millions of sham retail accounts that customers did not want.

Wells Fargo said the settlement reduces its reported first-quarter 2018 net income by 16 cents per share to 96 cents per share. The bank said it has adjusted its preliminary results to account for an additional accrual of $800 million.

Wells Fargo said it would also be required to submit, for review by its board, plans detailing ongoing efforts to strengthen compliance and risk management, and its approach to customer remediation efforts.

Reporting by Patrick Rucker in Washington and Mekhla Raina, Aparajita Saxena and Sweta Singh in Bengaluru; Editing by Meredith Mazzilli

Filed in: Top News Tags: 

You might like:

Ideology threatens to trump facts in official Medicare handbook Ideology threatens to trump facts in official Medicare handbook
The next frontier in workplace wellness: financial health The next frontier in workplace wellness: financial health
Hedge fund Jana Partners has no shares in Casey's Stores: spokesman Hedge fund Jana Partners has no shares in Casey's Stores: spokesman
Norway's wealth fund voted against Shell climate target motion Norway's wealth fund voted against Shell climate target motion
Deutsche Bank looks to cut 10,000 jobs to reduce costs: source Deutsche Bank looks to cut 10,000 jobs to reduce costs: source
Daycare costs harder to afford than college for many Daycare costs harder to afford than college for many
Deutsche Bank looks to cut 10,000 jobs to reduce costs: WSJ Deutsche Bank looks to cut 10,000 jobs to reduce costs: WSJ
Deutsche Bank plans to exit from equities markets: Bloomberg Deutsche Bank plans to exit from equities markets: Bloomberg

Leave a Reply

Submit Comment
© 3854 Stock Investors News. All rights reserved. XHTML / CSS Valid.