Wells Fargo has reportedly set aside $2 billion in preparations for “historical” regulatory matters it is currently in “resolution discussions” about with the Consumer Financial Protection Bureau (CFPB), according to reporting from Bloomberg.
In its third quarter 10-q filing with the Securities and Exchange Commission (SEC), Wells Fargo acknowledged that the CFPB was investigating Wells Fargo for alleged abuses relating to both mortgage and auto lending practices.
A settlement of more than $1 billion would be the largest single-agency fine issued by the CFPB – a record that is currently held by Wells Fargo. This would be the latest in a series of settlements with the CFPB relating to alleged consumer abuses by Wells Fargo.
This record-breaking settlement would be in line with CFPB Director Rohit Chopra’s agenda to take more serious action against what the bureau refers to as “repeat offenders.” Earlier this year Chopra specifically pointed to Wells Fargo, amongst others, as one of the repeat offenders the bureau intended to go after more seriously.
Talks between Wells Fargo and the CFPB are ongoing, and it is unclear if a final settlement amount will be decided before the end of 2022.