Wells Fargo’s long road to repair extends with prospect of more penalties

Wells Fargo’s long road to repair extends with prospect of more penalties

WASHINGTON/NEW YORK, Sept 1 (Reuters) – It has been nearly five years since Wells Fargo & Co (WFC.N) began addressing widespread customer abuses that led to regulatory penalties, lawsuits, reputational damage, business overhauls and management changes, but the fourth-largest U.S. bank apparently still has a lot of work to do, analysts say.

Regulators at two key agencies – the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) – are considering additional sanctions against Wells Fargo because it has been too slow to compensate victims and address underlying weaknesses in business practices, Bloomberg reported on Tuesday.

The bank also remains under an unprecedented asset cap that the Federal Reserve imposed, as well as roughly a dozen consent orders with regulators, all stemming from a sales scandal that erupted publicly in September 2016.

OCC, CFPB, Fed and Wells Fargo spokespeople declined to comment.

Chief Executive Charlie Scharf has pledged to get Wells Fargo on the right track and resolve regulatory issues as quickly as possible. But after news of more potential penalties, analysts predicted it could take him years to achieve those goals.

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Source: Reuters

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