2018-04-13 — reuters.com
Wells Fargo & Co (has been offered a penalty of $1 billion by regulators to resolve outstanding investigations related to auto insurance and mortgage lending abuses, the third-largest U.S. bank by assets said on Friday.
The bank said it may have to revise its quarterly results to reflect the final settlement.'
Wells Fargo is reeling from heavy costs and penalties related to the sales practices scandal, which came to light in 2016 and led to the ouster of ex-CEO John Stumpf and other senior management. Executives were grilled in several appearances before the U.S. Congress.
The U.S. Federal Reserve has also imposed restrictions on the bank's growth, forbidding it to expand its balance sheet beyond 2017 levels until it makes internal changes that addressed its board and risk management.
The restrictions on balance sheet growth will cut its annual profit by $300 million to $400 million this year, Wells Fargo said.
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