Federal regulators are seeking a $1 billion payment from Wells Fargo to settle problems with mortgage and auto loan issues, along with compliance risk management concerns, the bank said Friday as it reported its first-quarter earnings.
Although the finances reported by the financial giant topped Wall Street forecasts, the San Francisco-based bank warned that the results are subject to change due to continuing talks with the regulators.
If levied, a collective $1 billion penalty by the two regulators would be the highest-ever fine imposed by the consumer bureau. It could reduce Wells Fargo's first-quarter profit by approximately 20%, Kyle Sanders, an Edward Jones financial analyst, wrote in a research note issued Friday.
Sanders estimated a potential $1 billion penalty could lower Wells Fargo's first-quarter earnings per share to nearly 91 cents.
Submitted April 13, 2018 at 08:51PM by COMPUTER1313 https://ift.tt/2GYYUit
