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US: Wells Fargo fined US$1b for lending abuses

By  |  April 22, 2018

Wells Fargo will pay US$1 billion to federal regulators to settle charges tied to misconduct at its mortgage and auto lending business, the latest punishment levied against the banking giant for widespread customer abuses.

In a settlement announced Friday, April 20, Wells Fargo will pay US$500 million to the Office of the Comptroller of the Currency, its main national bank regulator, as well as a net US$500 million to the Consumer Financial Protection Bureau. The fine is the largest ever imposed by the CFPB and its first since the Trump administration took control of the bureau in late November.

Starting in September 2016, Wells Fargo has admitted to a number of abusive practices across multiple parts of its business that duped consumers out of millions of dollars. Regulators, in turn, have fined Wells several times and put unprecedented restrictions on its ability to do business, including forcing the bank to replace directors on its board. Even President Trump, whose administration has been keenly focused on paring back financial regulations, has called out Wells Fargo for its “bad acts.”

Full Content: NPR

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