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 9:31 AM
Updated: Apr 20, 2018 9:31 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.

Indiana Coronavirus Cases

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Cases: 1506866

Reported Deaths: 20637
CountyCasesDeaths
Marion2056892545
Lake1006641508
Allen935801017
Hamilton72876550
St. Joseph64730759
Elkhart49383628
Vanderburgh48286528
Tippecanoe43764336
Johnson38300526
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Warrick16933214
Wayne16230302
Floyd15876257
Grant15364298
Morgan14409231
Boone13514138
Noble11815141
Dearborn11676113
Henry11667201
Shelby11649151
Marshall11337168
Dubois11257152
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Lawrence10196220
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Gibson9583126
Montgomery9274143
Knox9043125
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Newton233661
Brown228956
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Switzerland197814
Martin189422
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Union170219
Ohio124016
Unassigned0739

Ohio Coronavirus Cases

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Cases: 2460869

Reported Deaths: 31245
CountyCasesDeaths
Franklin2660682065
Cuyahoga2589843018
Hamilton1711291714
Montgomery1142371604
Summit1077801391
Lucas917461160
Butler81317942
Stark759401400
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Warren51721475
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Clermont45258429
Delaware40037212
Trumbull39108755
Medina38036419
Licking37943408
Fairfield34857334
Greene33267422
Portage31942360
Clark31218445
Richland29019423
Wood28563297
Allen25249395
Miami23567395
Muskingum22859245
Columbiana22539403
Wayne21740356
Tuscarawas19252427
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Marion18111232
Scioto17366207
Ross16832252
Pickaway15948178
Hancock15761228
Geauga15374223
Lawrence14350186
Belmont13767247
Union1375384
Huron13682182
Jefferson13250258
Sandusky13047199
Athens12272106
Knox11850198
Seneca11762200
Darke11111198
Ashland11022178
Washington10836168
Auglaize10540142
Crawford10172175
Shelby10101157
Brown9734140
Fulton9531150
Guernsey9423117
Highland9396148
Defiance9321135
Logan9228142
Clinton9087127
Mercer8902111
Madison8836106
Preble8265162
Williams8127135
Putnam7922135
Ottawa7809121
Champaign7782112
Jackson7582117
Perry731298
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Morrow712882
Fayette688687
Pike640586
Hardin6397128
Gallia614791
Adams6000124
Van Wert5923121
Henry586493
Hocking5718104
Wyandot491590
Carroll4909100
Holmes4814161
Paulding414664
Meigs387473
Monroe307468
Noble289351
Harrison287961
Morgan283348
Vinton247945
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