Wells Fargo close to roughly $3 billion settlement that would end probes into sales practices
- Wells Fargo is nearing a deal with federal prosecutors that would settle a years-long investigation into the bank's sales practices in its banking, auto lending, and mortgage divisions, The New York Times reported.
- Though a dollar figure was not disclosed, the bank has set aside $3.1 billion for legal expenses associated with the scandal.
- The bank has paid $4 billion in fines and penalties since its sales scandal first broke in 2016, according to CNBC.
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Wells Fargo is close to a deal with the Securities and Exchange Commission and Justice Department that would settle probes into sales practices in the lender's banking, auto lending, and mortgage divisions, The New York Times reported Thursday, citing two people familiar with the matter.
The deal could be announced as soon as Friday, the people told The Times. The dollar amount of the settlement was not disclosed, but Wells Fargo has set aside $3.1 billion for legal costs associated with the matter, The Times reported.
It would put an end to the multi-year investigations the agencies initiated after Wells Fargo's sales scandal first came to light in 2016. The bank disclosed that year that it had initiated millions of bank accounts in its customers' names without their permission, improperly charged customers fees for auto and home loans, and sold customers undesired insurance products.
The settlement would be just the most recent in a slew of sanctions the bank has faced since the scandal. Wells has paid over $4 billion in fines and penalties since 2016, CNBC reported. Last month, regulators banned John Stumpf, who ran Wells Fargo while it carried on its abusive sales practices, from the banking industry for life and fined him $17.5 million, The Times reported. Other executives faced fines over a million dollars as well, though some are fighting those cases, The Times reported.
It's unclear whether the new settlement will involve any criminal charges against former bank employees, The Times reported.