Wells Fargo WFC +1.64% & Co. agreed to pay $1 billion to settle federal claims of misconduct in its auto and mortgage lending businesses.
The settlement with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency concerned the bank’s failures to catch and prevent problems, including improper charges to consumers in its mortgage and auto-lending businesses. The fine is the largest against a bank so far in the Trump administration and a signal that while officials are working to ease post crisis regulatory rules they won’t let companies off the hook for misconduct.
Settle risk management claims.
OCC said in a statement that they have took these actions given the severity of the deficiencies and violations of law, the financial harm to consumers, and the bank’s failure to correct the deficiencies and violations in a timely manner, found deficiencies in the bank’s enterprise wide compliance risk management program that constituted reckless, unsafe or unsound practices.
Timothy J. Sloan, president and chief executive officer of Wells Fargo said that they have more work to do, these orders affirm that they share the same priorities with their regulators and that they are committed to working with them as they deliver their commitments.