CBS NEWS-
Wells Fargo (WFC) is in talks with the Consumer Financial Protection Bureau regarding penalties running into the hundreds millions of dollars, or possibly higher, for mortgage-lending and auto-insurance abuses, according to reporting from Reuters. The San Francisco bank’s troubles are long-running, likely to continue — and certain to be a hot topic when Mick Mulvaney, the CFPB’s acting director, testifies before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.
Reuters cited three sources with knowledge of the plans in reporting that Mulvaney may be pushing for a record fine as high as $1 billion. The penalty would be the first by the CFPB under Mulvaney, tapped by President Donald Trump in November to head the consumer watchdog for finance.
Chances are good that Wells Fargo’s woes won’t disappear even if a record fine is levied. That’s because “the bank remains the ideal target for those on the far right and far left who believe the biggest banks are too large to manage,” Jaret Seiberg, an analyst with Cowen Washington Research group, wrote in a client note. “Even large fines do not put issues to rest. If anything, the size of the penalty is likely to result in even more political pressure on the bank.”
[CBS NEWS]
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