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Wells Fargo nears $1 billion settlement for loan abuses: source

By Patrick Rucker
A Wells Fargo logo is seen in New York City, U.S. January 10, 2017. REUTERS/Stephanie Keith

By Patrick Rucker

(Reuters) - Wells Fargo & Co <WFC.N> is close to settling a record fine of $1 billion imposed by two U.S. regulators for its risk management business, a source familiar with the matter told Reuters on Thursday.

Last week, the U.S. Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) proposed Wells Fargo to pay the penalty to resolve probes into auto insurance and mortgage lending abuses at the third largest U.S. bank.

Wells Fargo declined to comment.

The CFPB had been readying sanctions alongside the OCC, Wells Fargo's day-to-day regulator. https://reut.rs/2IGwTwi

The bank, still smarting from a prolonged sales scandal in its retail banking business, found inconsistencies at its auto lending and mortgage in the summer of 2017, leading to further probes by regulators.

To appease investors and regulators, the bank overhauled its operational structure, shook up its board and hired a new compliance officer.



(Reporting by Patrick Rucker in Washington and Mekhla Raina in Bengaluru; Editing by Arun Koyyur)