Regulators hit Wells Fargo with record $185M fine

DENVER BUSINESS JOURNAL - The Consumer Financial Protection Bureau handed Wells Fargo the agency's largest fine to date after determining that employees of the bank created unauthorized deposit and credit card accounts across the country in order to collect financial bonuses for themselves.

The CFPB itself is levying a fine of $100 million against Wells Fargo — Colorado's largest bank — although the bank will end up paying $185 million in fines when factoring in the joint action from the Los Angeles City Attorney’s office ($50 million fine) and the Office of the Comptroller of the Currency ($35 million). The penalty will be paid to the U.S. Treasury.

"Because of the severity of these violations, Wells Fargo is paying the largest penalty the CFPB has ever imposed," CFPB Director Richard Cordray said in a statement. "Today's action should serve notice to the entire industry that financial incentive programs, if not monitored carefully, carry serious risks that can have serious legal consequences."

Read more from the Denver Business Journal: http://bizj.us/1o69gq.

(© 2016 American City Business Journals.


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