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Wells Fargo will be fined $1 billion

Two federal regulators are close to fining Wells Fargo $1 billion for forcing customers into car insurance and chargi...

Posted: Apr 20, 2018 8:31 AM
Updated: Apr 20, 2018 8:31 AM

Two federal regulators are close to fining Wells Fargo $1 billion for forcing customers into car insurance and charging mortgage borrowers unfair fees.

The hefty penalty will be announced as early as Friday by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, according to a person familiar with the enforcement action.

It will be the harshest action taken by the Trump administration against a Wall Street bank.

Wells Fargo apologized last year for charging as many as 570,000 clients for car insurance they didn't need. The bank warned last week that it may revise its first quarter earnings results because of the fine. The New York Times first reported that the fine would come this week. Wells Fargo declined to comment.

An internal review by Wells Fargo found that about 20,000 of those customers may have defaulted on their car loans and had their vehicles repossessed in part because of those unnecessary insurance costs.

Representatives from the CFPB and the OCC declined to comment on the pending action.

Related: Wells Fargo customer: It felt like my car was held as extortion

In October, the bank revealed that some mortgage borrowers were inappropriately charged for missing a deadline to lock in promised interest rates, even though the delays were Wells Fargo's fault.

Such a large fine would be a noteworthy move for the CFPB under Mick Mulvaney, the acting director appointed by President Trump.

As a congressman, Mulvaney called for the bureau's destruction. And under his leadership, the bureau has delayed payday-loan rules, dropped lawsuits against payday lenders and stripped a fair-lending division of its enforcement powers. He told a House hearing this week that the bureau has not launched any enforcement actions since he took over last fall.

Related: Trump official denies he's trying to destroy the CFPB

In February, the Federal Reserve handed down unprecedented punishment to Wells Fargo for what it called "widespread consumer abuses," including its creation of as many as 3.5 million fake customer accounts.

Under that penalty, Wells Fargo won't be allowed to get any bigger than it was at the end of last year - $2 trillion in assets - until the Fed is satisfied that it has cleaned up its act.

In a conference call last week, CEO Tim Sloan told analysts that he can't promise no new scandals will emerge.

"We've certainly had a thorough look in every nook and cranny in the company, and we're continuing on that process," he said. "[But] in terms of declaring victory and walking ahead, we're not at that spot right now."

- CNN's Matt Egan contributed to this report.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 441935

Reported Deaths: 5885
CountyCasesDeaths
Hennepin918591461
Ramsey39405729
Dakota32551324
Anoka30638354
Washington19827221
Stearns17686184
St. Louis13453237
Scott1178693
Wright11485101
Olmsted1024870
Sherburne812364
Carver686636
Clay643278
Rice595266
Kandiyohi551069
Blue Earth533833
Crow Wing476573
Otter Tail449860
Chisago446331
Benton414885
Winona383946
Douglas370366
Nobles364646
Mower358026
Goodhue340757
Polk326754
McLeod321644
Morrison308743
Beltrami305746
Lyon298735
Itasca281143
Becker279438
Isanti279440
Carlton276942
Steele26879
Pine263813
Freeborn237219
Todd230029
Nicollet222136
Brown212334
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Meeker197433
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Fillmore12084
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Iowa Coronavirus Cases

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Cases: 300884

Reported Deaths: 4197
CountyCasesDeaths
Polk44949440
Linn17563269
Scott15228161
Black Hawk13552228
Woodbury12896175
Johnson1191749
Dubuque11229148
Pottawattamie8863112
Dallas874169
Story857433
Webster464768
Cerro Gordo458766
Sioux452451
Clinton445461
Warren430637
Marshall424561
Buena Vista389029
Muscatine382275
Des Moines377340
Plymouth347967
Wapello336796
Jasper315955
Lee310828
Marion298852
Jones268949
Henry262130
Carroll252233
Bremer240048
Crawford227622
Boone214116
Washington213531
Benton207543
Mahaska189936
Jackson189631
Tama184757
Dickinson183225
Delaware171136
Kossuth169241
Clay165319
Wright161724
Fayette157022
Buchanan156920
Hamilton156828
Hardin153129
Harrison152961
Winneshiek150819
Clayton149848
Cedar149119
Butler145423
Page143115
Floyd137236
Cherokee137125
Mills135216
Lyon133132
Poweshiek131024
Hancock127924
Allamakee125927
Iowa122122
Calhoun12159
Jefferson118623
Grundy118522
Winnebago117229
Madison11639
Mitchell114634
Louisa113729
Cass111741
Chickasaw110111
Sac110115
Emmet109931
Appanoose108838
Union107922
Humboldt103919
Guthrie102124
Shelby101026
Franklin99818
Unassigned9370
Palo Alto8969
Keokuk84225
Montgomery82722
Howard81119
Monroe79918
Pocahontas77211
Clarke7717
Ida73530
Greene6837
Davis68221
Adair68120
Lucas6458
Osceola6349
Monona62316
Taylor5889
Worth5873
Fremont5005
Van Buren49112
Decatur4744
Ringgold4229
Wayne41321
Audubon4118
Adams2923
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