Wells Fargo (WFC)

Wells Fargo (WFC) :twisted:

Wells Fargo disclosed in a regulatory filing on Friday that it is facing government probes into its use of low-income housing tax credits and that it has allocated $8 million to compensate borrowers who were incorrectly denied mortgage modifications under a federal assistance program.

Wells Fargo is the subject of numerous regulatory penalties and private lawsuits related to a sales practices scandal that has touched on all of the bank's major business units. The bank updated disclosures on issues it has discovered in fiduciary and custody accounts, foreign exchange trading, wealth management, auto lending, mortgage rate-lock extensions, "add-on" products like identity theft protection, and frozen or closed bank accounts.

Yeah, that's some bad press but...
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Definitely still making money. That drop in mortgages and insurance have to hurt though. Probably will for some time to come.

They should have given more consideration to the long-term value of their customer relationships.

The Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) are displeased with the pace of Wells Fargo's efforts to compensate victims of its recent sales practice scandals. Sources suggest U.S. regulators have warned the bank they may impose new sanctions over failure to improve governance and risk controls as instructed.

Ouch! Well Fargo took $250 million hit for that failure to improve. They are never going to be allowed to grow.