Wells Fargo lost $5 billion to fines and legal settlements. Now, the company might be prepping to lose even more.
In recent years, Wells Fargo committed unprecedented fraud through the creation of “fraudulent savings and checking accounts … without [customer] consent.” The fraud caused damage to Wells Fargo’s brand and buried the bank in civil and criminal suits.
That’s not much of a problem if you’ve got a lot of money, but regulators are supposedly unhappy with how slowly the company is compensating victims and righting its wrongs. 🙅
The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau warned that new sanctions could be imposed on the company. These sanctions would apply to a completely new management team — the last team got the boot, after all.
It’s unknown what sanctions might await the bank, but ‘regulators’ is always a scary word to investors. $WFC stock fell 5.4% today.