Wells Fargo & Company has reached an agreement with the Federal Reserve that resolves allegations that its former Wells Fargo Financial unit, which was closed in July 2010, did not adequately detect and prevent instances of fraudulent loan applications and that the unit’s employees steered prime borrowers into more costly subprime loans. The Fed has assessed an $ 85 million civil money penalty against Wells Fargo. In addition, the order requires the company to compensate affected borrowers.
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