Wells Fargo Struggles to Meet an Enforcement-Action Deadline

Marco Green
April 23, 2018

Wells Fargo's greed comes at a high price: the bank is now under fire for fraudulent activity which included forcing its customers to buy vehicle insurance policies they didn't need and charging unfair costs on mortgages.

How do they keep getting away with this sh*t?

But even then, these guys were no strangers to controversy: Since 2012, they've been hit with a bevy of student loan lawsuits, a mortgage fraud fine ($1.2B), and a fine for mortgage bias against black and Hispanic borrowers ($175m).

The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced the settlement on Friday.

She said the union would no longer offer or promote the Wells Fargo mortgage program. "That is what we did here", Mulvaney said in a statement. Earlier this year, the Federal Reserve announced it is curbing the bank's growth until it modifies its practices.

"For more than a year and a half, we have made progress on strengthening operational processes, internal controls, compliance and oversight, and delivering on our promise to review all of our practices and make things right for our customers", said Timothy J. Sloan, CEO and president of Wells Fargo, in a statement.

The San Francisco-based banking giant - which has seen its fair share of scandals over the last few years - received a $500 million credit from the CFPB for a penalty already collected by the OCC.

While banks have benefited from looser regulations and lower taxes under President Trump, Wells Fargo has been called out specifically by Trump as a bank that needed to be punished for its bad behaviour.

"We remain deeply committed to the financial success of teachers and all of our customers. I will cut Regs but make penalties severe when caught cheating!", Trump wrote on Twitter back in December.

"As to the terms of the settlement: We have said all along that we will enforce the law".

On Friday, Wells Fargo adjusted its previously reported first-quarter earnings to reflect the penalty.

This is the biggest fine that has ever been imposed by Consumer Financial Protection Bureau.

Other reports by Click Lancashire

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