How much more dirty laundry can these guys have? How long before the Feds have to take this bank over outright? Wells Fargo is disclosing they found even more overcharged customers:
Wells Fargo keeps finding new parts of its vast banking empire that overcharged innocent customers.
On Friday, Wells Fargo disclosed it’s setting aside another $285 million to refund foreign-exchange and wealth-management clients
That’s on top of Wells Fargo’s infamous consumer scandals. The bank has already paid out rebates to customers for opening fake accounts in their names, forcing them into car insurance they didn’t need and charging them mortgage fees they didn’t deserve.
The laundry list of legal troubles is hurting Wells Fargo’s financial results. The company said on Friday its profits dropped more than feared as expenses mounted. Wells Fargo’s deposits also dipped because of tough penalties from the Federal Reserve that limit the size of the bank’s balance sheet.
Wells Fargo said that a third-party investigation into its foreign-exchange business found the bank may be on the hook for $171 million to clients.
That includes $31 million in refunds for instances where customers “received pricing inconsistent” with the bank’s commitments.