Wells Fargo and Company (WFC)

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Wells Fargo could face as much as $1 billion in fines

By Kevin Dugan
April 9, 2018



Federal Reserve imposes more penalties on Wells Fargo
Wells Fargo is facing as much as $1 billion in fines over abuses in the beleaguered bank’s mortgage and auto loan financing divisions, according to a report.


The Consumer Financial Protection Bureau is planning to levy its biggest fine ever in the coming days against the nation’s third-biggest bank, which is currently led by CEO Tim Sloan, according to Reuters.
The prospective penalty comes some five months after President Trump angrily contradicted reports that his administration was going to go soft on the lender, and vowed to punish the company severely.
“Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased,” Trump tweeted on Dec. 8. “I will cut Regs but make penalties severe when caught cheating!”

The fines come about 18 months after the CFPB and other regulators slapped Wells fargo with $100 million in fines for creating millions of fake checking accounts and credit cards in customers’ names in order to fulfill sales quotas.
That scandal led the bank’s last CEO, John Stumpf, to resign.
The bank will hold its annual meeting on Apr. 25.





A spokeswoman for Wells Fargo declined to comment. Representatives from the CFPB didnt return a request for comment
Wells Fargo shares added 2 cents to close at $52.25.