Wells Fargo close to $1 bn US settlement

New York: Wells Fargo is close to paying $1 billion to settle a US probe over its risk management policies in another blow to the banking giant, US media reported. The settlement would cover problems uncovered in the mortgage and auto lending businesses, according to The Wall Street Journal, which cited people familiar with the matter. The New York Times and The Washington Post also reported that a $1 billion settlement was close at hand. Wells Fargo itself said last Friday in its earnings press release that regulators from the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency have proposed $1 billion in penalties to resolve the investigations. The penalty is the latest regulatory problem to befall Wells Fargo, which also came under fire from investors and lawmakers over a fake account scandal. The Federal Reserve, in an unprecedented move, in February ordered the bank to halt its expansion until it improves governance, following “persistent misconduct.” — AFP