Wells Fargo faces $1 billion fine to settle loan abuses

[April 13, 2018]  (Reuters) - Regulators have offered Wells Fargo & Co <WFC.N> a penalty of $1 billion to resolve outstanding investigations related to auto insurance and mortgage lending abuses, the third-largest U.S. bank by assets said in its first quarter results on Friday.

A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S., February 10, 2015. REUTERS/Jim Young/File Photo

Reuters reported on Monday that the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency were readying a fine of up to $1 billion for Wells Fargo's auto insurance and mortgage lending abuses.

The bank said it may have to revise its quarterly results to reflect the final settlement.

"The CFPB and OCC have collectively offered to resolve for an aggregate of $1 billion in civil money penalties," the bank said.

"At this time, we are unable to predict final resolution of the CFPB/OCC matter and cannot reasonably estimate our related loss contingency."

The company reported a 6 percent jump in quarterly profit, saying net income applicable to common stock rose to $5.53 billion, or $1.12 per share in the quarter ended March 31, from $5.23 billion, or $1.03 per share a year ago. https://reut.rs/2HgHNMt

Analysts on average were looking for $1.06 per share, according to Thomson Reuters I/B/E/S.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Bernard Orr and Patrick Graham)

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