Wells Fargo shares shrug off OCC fine

Wells Fargo Corp.

shares rose 2% in pre-market trades on Friday despite a $250 million civil penalty from the Office of the Comptroller of the Currency for not meeting requirements of its 2018 action against the bank. The fine, which was announced late Thursday, had been anticipated after recent press reports and signals from the bank over the summer about regulatory friction. J.P. Morgan Chase analyst Vivek Juneja described the fine as “moderate” but said the bank could face additional sanctions from Consumer Financial Protection Board. Nor did the OCC’s order address issues surrounding auto insurance remediation, which could also result in additional sanctions, he said. “This consent order will result in more expenses, likely some delayed foreclosures, increased demands on management time, and greater board involvement,” Juneja said. The OCC issued a cease and desist order against the bank, “based on the bank’s failure to establish an effective home lending loss mitigation program.” Wells Fargo’s stock has risen 47% so far in 2021 while the S&P 500

has gained 19.6%.

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