Wells Fargo to pay $2.1 Billion for Role in Housing Bubble
NEW YORK (AP) — Wells Fargo is agreeing to pay a $2.1 billion fine to settle allegations it misrepresented the types of mortgages it sold to investors during the housing bubble and subsequent financial crisis.
The amount is smaller than fines paid by Bank of America, JPMorgan Chase, Goldman Sachs and other big banks in the years following the financial crisis to settle similar allegations.
Wells Fargo is one of the last remaining big banks to settle charges related to its role in the subprime mortgage crisis.
The fine is unrelated to the more recent scandals that have plagued Wells, such as the opening of millions of fake accounts for customers without their authorization in order to meet unrealistic sales quotas.