Wells Fargo is looking to settle their recent conundrum by paying a massive fine. The financial institution looks to drop a whopping $1 billion against local U.S. regulators. They look to settle their alleged misdeeds and misleading insurance in the past.
The Consumer Financial Protection Bureau was the regulating body that hammered the bank the massive fine. Furthermore, the Comptroller of the Currency also helped in leveling the sanction and fine against Wells Fargo.
The CFPB took a whopping 18 months after the financial institution admitted to their wrongdoing. The bureau managed to work with the Comptroller of the Currency after the investigation pointed to multiple misleading shams.
According to reports, Wells Fargo managed to swindle their way out of millions of their customers. The whole operation managed to score the bank millions to billions of dollar.
Looking the filed reports, the financial institution forced their customers to buy auto insurance policies that they don’t really need. They managed to hit their homebuyers with the insurance sham and also hit them with excessive.
Now, Wells Fargo has acknowledged that they are looking to pay the massive $1 billion fine. According to the company, the settlement will gravely hit their reports for their 2018 first quarter performance. They mentioned that their net income dropped by a whopping 16 cents per share, pulling it to the 96 cents per share.
Furthermore, the bank will see how much and what damages are they looking to settle this Friday. This will be one of the biggest fines that the Trump administration will conclude if the events line up.
Wells Fargo vs. Trump Administration
President Donald Trump even tweeted, “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.”
Furthermore, President also added that “I will cut Regs but make penalties severe when caught cheating.”
The president and CEO of Wells Fargo Timothy J. Sloan said in a statement that “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,”
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