After a Record $3.7 Billion Fine, More Could Be Coming for Wells Fargo. Should Investors Be Worried?
Recently, Wells Fargo (NYSE: WFC) entered into a $3.7 billion settlement with the Consumer Financial Protection Bureau (CFPB) for past violations including assessing illegal fees to its mortgage and auto loan customers and wrongfully repossessing vehicles.
It's the latest in a wave of fines and punishments the bank has had to deal with since its phony-accounts scandal came to light in 2016. The $3.7 billion settlement included a $1.7 billion civil fine to Wells Fargo, the largest in history. Now, one might think that after such a big fine the bank may be in the clear, or at least be able to chill for a while.
But looking at the way Wells Fargo accounts for these kinds of losses and considering the amount of outstanding regulatory consent orders the bank is dealing with, there could be more fines to come in the near future. Should investors be worried?
Source Fool.com
