Wells Fargo Reaches Settlements to Resolve Outstanding DOJ and SEC Investigations Related to Historical Community Bank Sales Practices

Wells Fargo & Company today announced that it has entered into agreements with the United States Department of Justice (DOJ) and the United States Securities and Exchange Commission (SEC) to resolve these agenciesa?? investigations into the Companya??s historical Community Bank sales practices and related disclosures. As part of this resolution, Wells Fargo has agreed to make payments totaling $3 billion.

Charlie Scharf, chief executive officer, said: "The conduct at the core of todaya??s settlements a?? and the past culture that gave rise to it a?? are reprehensible and wholly inconsistent with the values on which Wells Fargo was built. Our customers, shareholders and employees deserved more from the leadership of this Company. Over the past three years, wea??ve made fundamental changes to our business model, compensation programs, leadership and governance. While todaya??s announcement is a significant step in bringing this chapter to a close, therea??s still more work we must do to rebuild the trust we lost. We are committing all necessary resources to ensure that nothing like this happens again, while also driving Wells Fargo forward.a??

As the settlement agreements with the DOJ recognize, Wells Fargo cooperated fully with the governmenta??s investigations.

Todaya??s resolution includes:

An agreement with the DOJ that resolves the criminal investigation into sales practice activities in the Community Bank from 2002 to 2016. As part of the agreement, no charges will be filed against Wells Fargo provided Wells Fargo abides by all the terms of the agreement.

A separate settlement agreement that resolves DOJa??s civil investigation.

And a separate administrative order that resolves the SECa??s civil investigation. Wells Fargo has agreed to the establishment of a $500 million Fair Fund for the benefit of investors who were harmed by the conduct covered in the agreement. The Fair Fund is part of the $3 billion settlement.

Wells Fargo had fully accrued for the amount of this settlement as of December 31, 2019.
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