Wells Fargo settles whistleblower suit for $108M

Nearly a year after a wide-ranging fake-accounts scandal hit Wells Fargo, the embattled bank can’t escape the snit-storm.

The San Francisco bank said Friday it will pay the US government $108 million to end a whistleblower suit claiming it bilked veterans via hidden mortgage refinancing fees.

In addition, the bank said it is facing “significantly” more fake accounts than previously reported and may have to increase its legal reserves.

“To regain the trust we have lost, we must continue to be transparent,” CEO Tim Sloan said in a statement.

All the extra legal activity is expected to be expensive.

Wells will spend about $3.3 billion more than it’s already set aside to cover the legal costs, according to a related regulatory filing published Friday.

Last year, Wells Fargo settled with regulators for $185 million over 2 million fake accounts and credit cards its low-level employees had set up since 2011.

The scandal led to the ouster of the former CEO, John Stumpf, as well as other executives who oversaw the businesses.

Wells Fargo shares dipped 1.1 percent on Friday, to close at $52.84. They are down 4 percent this year.

Source: http://nypost.com/2017/08/04/wells-fargo-settles-whistleblower-suit-for-108m/

Leave a Reply