Wells Fargo Fined $250M Over Unresolved Issues Tied to Scandals
- The penalty adds to the $5 billion in fines and legal settlements the bank has paid over the last five years for fake accounts and more.
Wells Fargo & Co. was handed a fresh regulatory action and a $250 million fine over its lack of progress addressing long-standing problems, the first such sanction under Chief Executive Officer Charlie Scharf.
The penalty adds to the more than $5 billion in fines and legal settlements that the firm has paid over the last five years tied to a series of scandals that began with fake accounts in its branch network.
The latest order, from the Office of the Comptroller of the Currency, cites deficiencies in Wells Fargo’s home-lending loss mitigation practices — the steps firms take to avoid foreclosure — that have prevented the bank from being able to “fully and timely remediate harmed customers.”
“Wells Fargo has not met the requirements of the OCC’s 2018 action against the bank,” Michael Hsu, the regulator’s acting chief, said in a statement Thursday. “This is unacceptable.”