US regulators are reportedly not satisfied with the pace Wells Fargo & Co is compensating the victims affected by the sales practice scandals.
According to a Bloomberg report, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau have indicated that they may place new sanctions on the lender due to the sluggish pace.
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The lender, on the other hand, has sought more time to resolve the issues, sources told the publication.
However, the Bloomberg report added that it is not immediately clear when the regulators might proceed.
Wells Fargo’s scandals started surfacing in 2016. The most notorious among them is the fake account scandal where employees opened phoney accounts of customers to meet aggressive sales targets. Wrongdoings in other business units were also observed.
Wells Fargo is the fourth largest bank in the US.
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By GlobalDataIn the second quarter of this year, the bank reported revenue of $20.27bn. The figure represents a 10% increase compared with the same quarter one year ago.
The results were boosted by a $1.6bn release of its credit loss reserves.
Wells Fargo CEO Charlie Scharf, who took charge in 2019, is focusing on improving the image of the bank and reining on expenses.
Recently, the lender pushed back return-to-office plans due to rise in Covid-19 cases.
