>> Wells Fargo getting more than just a slap on the wrist for behaving badly yet again. Without admitting guilt, America's third largest lender agreed Friday to cough up $1 billion in fines. The penalty puts to an end a probe that Wells Fargo forced customers to buy unnecessary auto insurance and charged mortgage borrowers more than needed.
As Reuters correspondent Patrick Rucker points out, this is an unusually large fine coming from a Trump administration that's taken a light touch when it comes to bank regulation.>> Reuters reported in Decemeber, that Mulvaney, the head of the Consumer Financial Protection Bureau, was gonna put this whole fine on ice.
That President Donald Trump came and to forget that we're gonna go hard after these guys. And in fact this is the largest fine by a factor of ten I think compared to the last fine against the bank so this is quite a serious fine.>> The fine, levied in conjunction with the Office of the Comptroller of the currency, also requires regulators to monitor the bank's internal business practices to make sure it's cleaning up its act.
Wells Fargo as been slapped with punishment after punishment since it was caught cheating clients with dummy accounts for years to boost business. The Federal Reserve stopping the bank from growing its business until problems are fixed. On top of that, $185 million in penalties and another $5 million to pay back customers wrongly pushed into fee generating accounts.
Wells Fargo stock rose Friday since the bank has laid billions aside to cover its legal costs.