2/21, 10:31 PM (Source: TeleTrader)
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Wells Fargo reaches $3B settlement with DoJ, SEC

Wells Fargo will pay $3 billion in criminal and civil settlements with the Justice Department and the Securities and Exchange Commission over its practice of setting up fake accounts for customers who never requested them. Out of $3 billion, $500 million will be disbursed by the SEC to investors in civil penalties.

"This case illustrates a complete failure of leadership at multiple levels within the bank," US Attorney Nick Hanna said commenting on the settlement reached on Friday.

As part of the deal, the San Francisco-based bank admitted to racking up millions of dollars to which it had no right, damaged its customers' credit ratings and abused their personal information.

The bank's stock added 1.78% in the after-hours trading.

Breaking the News / GG