Regulators hit Wells Fargo with $1 billion fine
by Onize Ohikere
Posted 4/20/18, 10:24 am
Federal regulators on Friday slapped Wells Fargo with a $1 billion combined fine for mortgage and auto loan abuses. The fine includes a $500 million payment to the office of the Comptroller of the Currency—the bank’s main regulator—and $500 million to the Consumer Financial Protection Bureau (CFPB). This marks the first penalty issued since Mick Mulvaney took over as CFPB director in late November under the Trump administration. Wells Fargo has faced several scandals in recent years. The bank admitted last summer that it sold auto insurance to hundreds of thousands of auto-loan customers who did not want or need it. In September 2016, regulators issued Wells Fargo a $185 million fine for opening about 3.5 million accounts without permission from customers.
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Onize is a reporter for WORLD Digital based in Abuja, Nigeria.