SAN FRANCISCO–Wells Fargo has agreed to yet another multi-billion settlement with the government.
The bank announced an agreement with the Justice Department under which it will pay $2.09 billion related to the sale of failed mortgage-backed securities during the financial crisis of a decade ago.
The Justice Department said the civil settlement will end its probe over the issue, following several months of negotiation over just how much Wells Fargo would pay. The bank has already reserved funds for the settlement payment.
In a statement accompanying news of the settlement, the Justice Department said it “holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted.”
As CUToday.info has reported, the settlement is just the latest in a long line of poor and illegal practices at the bank, the biggest of which involved the opening more than three-million bogus accounts and the firing of more than 5,000 employees. That led to more than $185-million in fines.
Wells Fargo is also operating under restrictions from the Fed that limit its asset growth.
Just how many shenanigans has the bank been charged with? Go to CUToday.info and simply search “Wells Fargo.”