The $ 1
Wells Fargo & Co.
WFC, + 2.18%
agreed on Friday to pay a $ 1 billion fine to the Financial Supervisory Bureau and the Office of the Comptroller of the currency for mortgages and Harm car loaners. Technically, the CFPB fined US $ 1 billion for Wells Fargo and OCC fined US $ 500 million, but CFPB awarded Wells Fargo a credit for the OCC 500 million Dollar.
Read: Here's what Wells Fargo did to set off a $ 1 billion fine
For the CFPB, the fine is only $ 2.125 billion against Ocwen Financial Corporation
and his loan service arm for mortgage service violations, which allegedly put thousands of people across the country at risk of losing their homes.
|Organization||Fine (In millions)||Date||Injury|
|Ocwen Finance and Lending||$ 2,125||12/19/2013||Consumer protection / Mortgage lapses|
|Wells Fargo||$ 1,000||4/20/2017||Consumer Protection / Mortgage Abuse|
|Bank of America, NA||$ 747||9.04.2014||Consumer Protection / Banking|
|Citibank NA||$ 733  21.07.2015||Consumer Protection / Credit Card|
|Sun Trust Mortgage||$ 550||6/17/2014||Consumer Protection / Mortgage Abuse|
|Corinthian Colleges  $ 531.2 19659010] 28.10.2015||Consumer Protection / Abuse of Student Loans|
|JPMorgan Chase and Chase Bank USA, NA||$ 329||9/19/2013||Consumer Protection / Credit Card|
|GE Capital Retail Bank, now known as Synchrony||$ 225||6/19/2014||Consumer Protection / Credit Card|
|Discover Bank||$ 214||9/24/2012||Consumer Protection / Credit Card|
|JP Morgan Chase||$ 186 [ConsumerProtection/CreditCard|
|Morgan Drexen||$ 172.9||3/18/2016||Consumer Protection|
|Capital One Bank||$ 165||18.07 .2012||Consumer Protection / Credit Card|
|Wells Fargo Bank||$ 100||9/8/2016||Banking / Consumer Protection|
|American Express||$ 99.1||01.10.2012||Consumer Protection / Credit Card|
This is not the first time that CFPB has punished Wells Fargo. In 2016, CFPB imposed a fine of $ 100 million on the perennial, systemic and illegal practice of opening unauthorized deposit and credit card accounts. The activity was the result of a culture in Wells Fargo that, according to the CFPB Consent Regulation, provided aggressive sales goals and incentives that encouraged employees to increase sales by secretly opening more than two million accounts. Wells Fargo was asked to pay full compensation to all victims in addition to the fine.
Wells Fargo is not the only repeat offender.
JPM, + 0.04%
are tied because they each received four fines from the CFPB.
was the target of three CFPB credit card enforcement efforts between 2012 and 2017 for a total of $ 264.2 million.
The CFPB was officially launched by the Dodd-Frank Act in 2010 and officially began work in mid-2011, but it was not until mid-2013 when the Senate endorsed Richard Cordray as director that he was no longer employed.
Mulvaney, also director of the Office of Management and Budget, was appointed President Trump to be CFPB Director after Cordray resigned in November
This was the first CFPB enforcement action under Mulvaney's leadership. Mulvaney was criticized by Democrats both in the House and in the Senate for his responsibility at a hearing this month.
It is also the only bank that Trump has criticized by name.
Fines and penalties against Wells Fargo Bank for their bad actions against their clients and others are not dropped, as reported incorrectly, but are tracked and, if anything, substantially increased. I will cut regs, but make punishments serious if they are cheated!
– Donald J. Trump (@realDonaldTrump) December 8, 2017
"Well, what the President has tweeted, if that's exactly, I do not have any reason to think it's not exactly what the law says, and we did that here today, "said Mulvaney in an interview with Fox Business Network.
"But to get the actual dollar amount, we could not have recovered much if we brought this matter to court, maybe." "Could we have recovered again? Possibly, that's the nature of a settlement." No, I do not think people in Wells think that a billion dollars is a small amount of money, I do not think anyone should hold a billion dollars for a small amount of money, so this is a historically large collection and we are Very happy with the result, "said Mulvaney.
Bartlett Naylor, an advocate of fiscal policy with the nonprofit organization Public Citizen, was less fortunate. "Shareholders who will pay the bill for this fine have not grasped, overlooked and concealed this massive fraud." Wells Fargo executives have said, "Naylor said in a statement. "Meanwhile, Republican corporate tax is more than offsetting this fine, and the company reportedly posted $ 3.35 billion in profits from the new bill."
The $ 500 million fine imposed by the OCC will be passed to the Penalty of CFPB counted. The OCC binds the fine of the Banking Supervision Authority against HSBC in 2012, before the impact of inflation
HSBC, + 0.53%
for banking secrecy and anti-money laundering compliance violations.