7 November | Regulation

Wells Fargo faces CFPB demand to pay over $1 billion in fine

Wells Fargo is facing the U.S. Consumer Financial Protection Bureau (CFPB) demand for the fine exceeding $1 billion. The regulator is levying a fine against the financial services company to settle a series of investigations into mistreatment of customers, as reported by Bloomberg News. 

Wells Fargo announced last week that it conducted negotiations with the CFPB. The goal of negotiations is to settle charges against the bank, including its auto and mortgage lending as well as consumer deposit accounts.

Regulatory agencies announced a fine against one of America's largest banks after it took on $2 billion in operating losses in the third quarter. The bank incurred losses related to litigation, customer remediation and regulatory matters. Wells Fargo reported a 31% decline in third-quarter profit. 

The banking institution has operated under pressure of orders from the Fed and two other U.S. financial regulators to improve governance and oversight. The Fed also ordered the bank to keep its assets below $1.95 trillion.

Subscribe to our newsletter and stay up to date with all the news!