Wells Fargo is readying to pay the fine as two U.S. regulators had found inconsistencies at its auto lending and mortgage business.
As per a source familiar with the matter at hand, Wells Fargo & Co is likely to agree to pay a record fine of $1 billion imposed by two U.S. regulators with regard to its risk management business.
Last week, 2 U.S. regulators, the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) proposed that Wells Fargo pay the penalty to resolve probes into its auto insurance and mortgage lending abuses.
Wells Fargo declined to comment.
Incidentally, the CFPB and the OCC had prepared sanctions for Wells Fargo.
Still smarting from sanctions stemming from its retail banking business, regulators had found inconsistencies at its auto lending and mortgage business in the summer of 2017 which led to further probes.
To appease both regulators and investors Wells Fargo re-jigged its board and hired a new compliance officer.