New York Times, April 19, 2018: Punishing Wells Fargo: Just dessert, or beating a dead horse?
Wells Fargo investors got yet another jolt of bad news on Thursday with the disclosure that regulators are poised to impose a $1 billion penalty on the bank for infractions related to mortgage rate extensions, auto loans, risk compliance and other matters.
That comes on top of the $4.25 billion the bank set aside last year for liabilities related to its fake accounts scandal and the mortgage-backed securities issues it had before the financial crisis. It also paid a fine of $185 million in 2016 over the accounts scandal.
In February, the Federal Reserve ruled that the bank could not expand its balance sheet beyond the nearly $2 trillion in total assets that it reported at the end of 2017; it’s believed to be the first time the Fed has imposed such a curb on growth at a major bank.
p class=”story-body-text story-content”>But with the new $1 billion penalty, which is expected to be announced as soon as Friday, even I have to wonder: Has Wells Fargo been punished enough?