Tags: Wells Fargo Litigation Over Fake Accounts Could Cost 1.7B

Wells Fargo Litigation Over Fake Accounts Could Cost $1.7B

Image: Wells Fargo Litigation Over Fake Accounts Could Cost $1.7B

A Wells Fargo sign is seen in front of a branch in Pasadena, California on Sept. 28, 2016. (Frederic J. Brown/AFP/Getty Images)
 

By    |   Thursday, 03 November 2016 02:05 PM

Wells Fargo litigation in connection with its scandal of opening up fake customer accounts could cost as much as $1.7 billion, the financial company said Thursday.

Wells Fargo stated in a security filing that "the high end of the range of reasonably possible potential litigation losses" above what was already "probably or estimable" is about $1.7 billion, USA Today reported.

Wells Fargo said in August that litigation costs "could exceed provisions by as much as $1 billion," according to Reuters.

"The change in the high end of the range from June 30, 2016 related to a number of matters," the Wells Fargo Securities and Exchange Commission filing stated. "It is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss.

"Accordingly, there may be a range of possible losses in excess of the established liability or the range of reasonably possible loss. Wells Fargo is unable to determine whether the ultimate resolution of either the mortgage related regulatory investigations or the sales practices matters will have a material adverse effect on its consolidated financial condition," the filing statement continued.

Wells Fargo acknowledged earlier this year that retail bankers opened as many as 2 million fraudulent accounts without customers' permission in order to meet aggressive sales targets, USA Today reported.

The financial giant is facing tough regulatory scrutiny since September after the unauthorized account scandal broke, which led to the departure of former chief executive John Stumpf last month, according to Reuters.

Market Watch reported that Stumpf was forced to give up unpaid benefits when he resigned from his post. Wells Fargo told Market Watch that it remained committed to restoring trust with its customers and other stakeholders.

The financial company has refunded $2.6 million to customers for fees incurred by unauthorized deposit and credit card accounts, and created a new unit to run its community banking business, Market Watch noted.

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Wells Fargo litigation in connection with its scandal of opening up fake customer accounts could cost as much as $1.7 billion, the financial company said Thursday.
Wells Fargo Litigation Over Fake Accounts Could Cost 1.7B
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2016-05-03
Thursday, 03 November 2016 02:05 PM
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