Wells Fargo Chief Executive Charles Scharf heard his opinions at the House of Representatives Financial Services Committee hearing in Washington, DC, U.S., on Tuesday, March 10, 2020.
Andrew Haller | Bloomberg | Getty Images
FuGuo bank $37 million was paid to resolve government lawsuits accusing the bank of defrauding hundreds of business customers.
According to a lawsuit filed by the US Department of Justice on Monday, the bank allegedly charged 771 companies with excessive fees for foreign exchange transactions between 2010 and 2017. The bank’s shares fell 1.4%.
The settlement is the latest regulatory issue addressed by the CEO of Wells Fargo Charles Sharp, He was hired in 2019 to clean up a series of legal dilemmas that began with the 2016 fake account scandal.Earlier this month, Wells Fargo suffered Fined 250 million U.S. dollars On the same day, it announced the decision of the Consumer Financial Protection Bureau to agree to the order.
The lawsuit alleges that Wells Fargo told commercial customers that they were charged certain fixed interest rates, but then incentivized sales staff to “charge foreign exchange customers excessive fees.”
The lawsuit alleges that the bank subsequently concealed the overcharged fees from its customers and obtained “million-dollar foreign exchange income that the bank is not entitled to”.
The government stated that most of the settlement amount is US$35.3 million, which will be used as compensation for overcharging customers. The United States said that the whistleblower Paul J. Kohn who initiated the case in 2016 will receive $1.6 million.
The bank did not immediately respond to an email seeking comment.
This story is developing. Please check for updates.
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