Sunday , July 21 2019

Wells Fargo hits more bumps amid scandals

Bloomberg

A federal judge said he’s not ready to sign off on Wells Fargo & Co. collecting $240 million in insurance payments from 20 bank officials in connection with the lender’s unauthorised-accounts scandal — even though the settlement was touted as the largest-ever of its kind.
That came just hours after Federal Reserve Chairman Jerome Powell reiterated that the regulator won’t lift its growth ban on Wells Fargo until problems are addressed, specifically related to the bank’s risk-management approach.
While the attorneys who drafted the lawsuit settlement said its total value is $320 million because it includes corporate governance reforms, the San Francisco judge said he can’t determine whether the accord is fair to the shareholders who sued the bank’s officers and directors without knowing how much legal exposure they would face if the case went to trial.

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