Financial services provider Wells Fargo (NYSE:WFC) has reached a settlement with the Consumer Financial Protection Bureau (CFPB) for the resolution of multiple multi-year issues associated with automobile lending, consumer deposit accounts, and mortgage lending that affected more than 16 million customers.
The regulatory body recognized WFC’s efforts towards corrective actions and remediation since 2020 and as part of the settlement, WFC will pay $1.7 billion in civil penalties.
In relation to the settlement, the company now expects a $3.5 billion operating loss expense for the quarter ending December 31.
Shares of the company have now dropped more than 10% over the past month.
Analysts are cautiously optimistic about WFC stock with a Moderate Buy consensus rating based on seven Buys and five Holds.
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