Wells Fargo is currently under pressure from the US Consumer Financial Protection Bureau (CFPB) to pay over $1 billion to settle several investigations into customer mistreatment, Bloomberg News reported, citing people familiar with this matter.
The fourth-biggest US bank declined to comment on this report, while the CFPB did not instantly respond to a request for comment.
In the past week, Wells Fargo announced that it was in talks with CFPB to settle several probes, including one for automobile and mortgage lending and consumer deposit accounts.
The regulator’s demand reflects its growing frustration with the bank, the news report stated on November 4. Notably, the potential fine comes after the bank posted $2 billion in operating losses that are related to customer remediation, litigation, and regulatory matters in the third quarter and took a 31% hit to its third quarter profit in the past month.
Buy Bitcoin NowWells Fargo has operated since 2018 under consent orders from the Federal Reserve and two other US financial regulators to boost governance and oversight, with the Federal Reserve also capping its assets at $1.95 trillion.
