×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Financial Markets | Money | financial sales practices | Wells Fargo | Office of the Comptroller of the Currency | Consumer Financial Protection Bureau

Regulators Warn Wells Fargo of Possible New Sanctions

Wells Fargo logo
(Dreamstime)

Tuesday, 31 August 2021 04:25 PM

Frustrated at the pace of Wells Fargo & Co's efforts to compensate victims of its sales practice scandals, U.S. regulators have warned they may impose new sanctions on the bank, Bloomberg reported on Tuesday.

The Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) have signaled to the bank they are not satisfied with its progress, including the bank's attempts to improve its governance and risk controls, the report said.

Wells Fargo's stock fell 5.6% on the news.

Representatives from the OCC and the CFPB did not immediately respond to requests for comment. Wells Fargo declined to comment.

The bank, the fourth-largest in the United States, has been dogged by persistent costs and restrictions tied to its years-old sales practice scandals. Employees opened some 3.5 million phony accounts in customers’ names without their permission to artificially hit internal sales targets.

In 2016, Wells reached a $190 million settlement with the CFPB, the OCC and a Los Angeles prosecutor over the practice.

In 2018, the Federal Reserve ordered that Wells Fargo keep its assets below $1.95 trillion until it had improved governance and risk controls, and it entered into a sweeping consent order with the OCC related to selling of mortgage and auto-insurance products.

The bank has sought more time to resolve the issues raised by the consent orders, according to Bloomberg.

The asset cap has constrained the bank's ability to make loans or grow, its executives said in July. Further sanctions could hurt the bank's growth prospects.

It was not clear when regulators might proceed, Bloomberg reported. (Reporting by Elizabeth Dilts Marshall in New York; Editing by Cynthia Osterman)

© 2021 Thomson/Reuters. All rights reserved.


StreetTalk
Frustrated at the pace of Wells Fargo & Co's efforts to compensate victims of its sales practice scandals, U.S. regulators have warned they may impose new sanctions on the bank, Bloomberg reported on Tuesday.
financial sales practices, Wells Fargo, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau
275
2021-25-31
Tuesday, 31 August 2021 04:25 PM
Newsmax Media, Inc.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved