Wells Fargo Nears Settlement With Government Over Fake-Account Scandal
21 Februar 2020 - 5:07PM
Dow Jones News
By Ben Eisen and Rachel Louise Ensign
Wells Fargo & Co. is nearing settlements with the Justice
Department and the Securities and Exchange Commission over its
long-running fake-account scandal, according to people familiar
with the matter.
The bank could pay roughly $3 billion combined, some of the
people said. The settlements could come as soon as Friday, the
people said.
People familiar with the matter said the settlements are
expected to be only with the bank, not with former executives.
Regulators and prosecutors could still take action against
individuals, these people said.
Charles Scharf, Wells Fargo's new CEO, has said his priority is
resolving the bank's regulatory issues. The bank had previously
disclosed the probe by the Justice Department and SEC, which is one
of its biggest outstanding regulatory problems.
Investigators interviewed former executives including former
Chief Executive Officer Timothy Sloan in connection with the probe,
the Journal has reported.
The probe is related to the $185 million settlement the bank
entered into with the Office of the Comptroller of the Currency,
Consumer Financial Protection Bureau and Los Angeles City Attorney
in 2016. That settlement brought to light that the bank had opened
perhaps millions of fake accounts, spurring outrage among
regulators, lawmakers and customers.
Days later, the Journal reported that federal prosecutors were
in the early stages of an investigation into those same sales
practices at Wells Fargo.
The potential settlement was earlier reported by the New York
Times.
Write to Ben Eisen at ben.eisen@wsj.com and Rachel Louise Ensign
at rachel.ensign@wsj.com
(END) Dow Jones Newswires
February 21, 2020 10:52 ET (15:52 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Apr 2023 bis Apr 2024