The largest-ever civil fine levied by the U.S. Consumer Financial Protection Bureau was levied against Wells Fargo & Co. (WFC. N) as part of a $3.7 billion settlement to resolve allegations of widespread mismanagement of bank accounts, mortgages, and auto loans.
Over 16 million client accounts were impacted by the irregularities, and the consumer watchdog ordered the bank to pay a $1. 7 billion civil penalty and another $2 billion to make amends. The Justice Department introduced a number of policy adjustments last year with the goal of better discouraging repeat offenses.
Nine open consent orders have been issued against the business as a result of a sales controversy that became public in September 2016. “Wells Fargo anticipates recording expenses of approximately $3.5 billion.”
