After a series of scandals related to sales practices, Wells Fargo, one of the largest banks in the United States and the world, was fined about $ 3.7 billion, in the largest fine issued so far against the bank.
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One of the largest US banks has been fined billions of dollars for “fraud and manipulation”
US government regulators have decided to fine Wells Fargo, one of the country’s and the world’s largest banks, about $3.7 billion, in the largest fine yet issued against the bank, which has spent years trying to rehabilitate itself after a series of scandals related to its sales practices.
That amount is nearly four times the previous $1 billion fine Wells Fargo paid in 2018 to cover widespread consumer law violations.
The order, issued Tuesday by the Consumer Financial Protection Bureau, required Wells Fargo to repay consumers $2 billion and fined the bank $1.7 billion.
The bureau drew up a list of consumer financial law violations committed by the bank, which include illegal charges and interest on auto loans and mortgages, as well as improperly applying overdraft fees against savings and checking accounts. The bureau said the bank’s bad behavior affected more than 16 million customers.
Wells Fargo has been penalized repeatedly by US regulators for consumer protection law violations since 2016, when it was discovered that its employees illegally opened millions of accounts in order to achieve unrealistic sales targets. Since then, the bank says it has been “cleaning up its business”, but it has also been fined for additional breaches of consumer protection law.
The bank is under an order from the Federal Reserve that prevents it from growing further until it solves its business culture problems. This order, originally issued in 2018, was initially only expected to last a year or two.