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Wells Fargo Investment Institute President Darrell Cronk discusses the $ 3.5 trillion budget reconciliation program and the tax hikes that go with it.
A prominent U.S. banking regulator fined Wells Fargo (WFC.N) $ 250 million and imposed further restrictions on the bank’s operations after finding shortcomings in its earlier efforts to reimburse customers it she had previously wronged.
The Office of the Comptroller of the Currency said the bank failed to meet the requirements of a 2018 consent order, when the regulator ordered the bank to reimburse customers who were charged excessive or inappropriate fees. .
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“Wells Fargo did not meet the demands of OCC’s 2018 action against the bank. This is unacceptable,” Acting Monitor Michael Hsu said in a statement.
Specifically, the OCC said Wells Fargo’s efforts to identify and reimburse customers who had previously been wronged by the bank were insufficient, citing “significant shortcomings” in its previous attempt.
In 2018, Wells Fargo agreed to a joint billion dollar settlement with regulators, who found the bank had falsely insured hundreds of thousands of drivers and regularly assessed excessive and inappropriate homebuyers’ fees. .
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As part of that earlier consent order, the bank was ordered to create a program to identify aggrieved customers and pay them restitution.
In a statement, Wells Fargo chief executive Charles Scharf said the new penalty shows more work is needed to address “significant and long-standing deficiencies.”
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“Our work to build the right foundation for a company of our size and complexity will not follow a straight line. We are dealing with several issues simultaneously, and progress will come with setbacks. Having said that, we believe we are making significant progress, ”he added.
The sanction marks the latest blow for the bank, which began tackling widespread customer abuse almost five years ago.
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Last year, Wells Fargo agreed to pay $ 3 billion to resolve civil and criminal investigations into the company’s fraudulent and high-pressure sales practices. The OCC has already slapped eight former leaders with more than $ 58 million in fines. Read more
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