According to two people familiar with the matter, Wells Fargo is preparing to negotiate with federal prosecutors and the Securities and Exchange Commission over its massive abuse of banking, auto-financing and mortgage business customers.
According to the people, settlements could be announced by Friday as people spoke on condition of anonymity because the contracts were not yet public.
The size of the fine could not be determined immediately, but Wells Fargo has put $ 1.5 billion into legal costs to cover sales practices.
Federal prosecutors have also investigated people connected to the bank, but it is still unclear whether any criminal charges will be leveled against a person.
A spokesman for Wells Fargo declined to comment. Representative of the Justice Department and the S.E.C. Did not immediately respond to request for comment.
The settlement will be the latest in a series of government penalties against the bank and its former leaders. Just last month, a lawsuit was filed against a Wells Fargo executive who presided over an abusive sales practice – including former CEO John G. Stumpf The largest penalty set by bank regulators.
The scandal erupted in 2016 when Wells Fargo revealed that it opened several million bank accounts unknowingly to consumers, while taking unnecessary fees for unknown and home loans. It acknowledges the sale of unsolicited insurance products to some customers.
Although the settlements will solve the agencies’ many years of scrutiny, they will not end the bank’s regulatory problems. For two years, the bank has been operating under the Growth Restriction imposed by the Federal Reserve, which says it will not relieve the bank from restraining its operations to prevent such abuse until its leaders can demonstrate it.
Regulators are still seeking punishment against former employees.
On January 28, the Office of the Coin Controller fined a few million dollars for each of the former top executives; Mr. Stump agreed to pay $ 17.5 million. But many, including Cary L. Tolstead, a Wells Fargo retail banking chief, are battling a lawsuit brought by the regulator, seeking a $ 20 million fine.
Wells Fargo, the fourth largest bank in the United States, is trying to divert itself and will release itself from it. Poisonous culture that calls for employees to take refuge in fraud to increase their sales performance. In October, the bank hired former JP-Morgan Chase executive Charles W. to become its new leader. Appointed the sheriff.
Last month, after regulators announced a million-dollar settlement with the bank’s former head, Mr Scharf called the bank’s former sales practices “inefficient.”