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Wells Fargo Settles Fake-Account Lawsuit for $110 Million
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On Tuesday, San Francisco based bank Wells Fargo (WFC - Free Report) announced a $110 million settlement for a class-action lawsuit brought by customers. Still requiring court approval, the settlement covers anyone who claims to be touched by Wells Fargo’s employees opening more than 2 million accounts without customer consent.
Wells Fargo paid their first private settlement late last year. In September, the bank was penalized $185 million by federal and California authorities to cover their poor sales practices.
Now, upon approval of by a judge, Wells Fargo will have to repay the fees they charged customers for the fake-accounts. The rest will be split to compensate all impacted customers.
In addition to enduring financial blows, the bank’s business has been hit in a variety of different fashions. Bloomberg reports show that since Wells Fargo disclosed their initial $185 million fine by regulators, JPMorgan (JPM - Free Report) has replaced them as the biggest bank by market value. Also, Wells Fargo reported on Tuesday that a federal regulator has downgraded their rating under a law which monitors and promotes banking activities to minority and low income communities; this will lead to additional restrictions on acquisitions and openings of new branches.
Unfortunately for investors, Wells Fargo’s complications might still be far ahead of them. The bank is subject to criminal investigations, further reviews which may reveal more impacted customers, and lawsuits from previous employees.
Nonetheless, Wells Fargo is working towards a path to rebuild the market’s confidence in them. CEO Tim Sloan stated, “This agreement is another step in our journey to make things right with customers,”
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Wells Fargo Settles Fake-Account Lawsuit for $110 Million
On Tuesday, San Francisco based bank Wells Fargo (WFC - Free Report) announced a $110 million settlement for a class-action lawsuit brought by customers. Still requiring court approval, the settlement covers anyone who claims to be touched by Wells Fargo’s employees opening more than 2 million accounts without customer consent.
Wells Fargo paid their first private settlement late last year. In September, the bank was penalized $185 million by federal and California authorities to cover their poor sales practices.
Now, upon approval of by a judge, Wells Fargo will have to repay the fees they charged customers for the fake-accounts. The rest will be split to compensate all impacted customers.
In addition to enduring financial blows, the bank’s business has been hit in a variety of different fashions. Bloomberg reports show that since Wells Fargo disclosed their initial $185 million fine by regulators, JPMorgan (JPM - Free Report) has replaced them as the biggest bank by market value. Also, Wells Fargo reported on Tuesday that a federal regulator has downgraded their rating under a law which monitors and promotes banking activities to minority and low income communities; this will lead to additional restrictions on acquisitions and openings of new branches.
Unfortunately for investors, Wells Fargo’s complications might still be far ahead of them. The bank is subject to criminal investigations, further reviews which may reveal more impacted customers, and lawsuits from previous employees.
Nonetheless, Wells Fargo is working towards a path to rebuild the market’s confidence in them. CEO Tim Sloan stated, “This agreement is another step in our journey to make things right with customers,”
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>